UK Fraud Strategy 2026–29 makes banks tackle AI scams

The UK’s forthcoming Fraud Strategy 2026–2029 sets new expectations for banks, fintechs, telcos and online platforms to expand early‑warning intelligence, speed data sharing and harden defences against AI‑driven identity fraud and instant‑payment abuse. The strategy treats fraud as a cross‑sector threat that requires faster detection and closer collaboration between public and private organisations.

Briefings and a webinar on June 9, ahead of the NextGen FinCrime conference on July 8 in London, outlined how those expectations will be applied. Panelists included representatives from a crypto‑risk firm, a global payments network and a fintech industry body. They described a shift from retrospective, siloed controls to real‑time, predictive detection that links signals across payments, identity and online behaviour.

Under the approach, firms must detect and escalate suspicious patterns earlier by analysing payment flows, device and behavioural signals and activity on crypto markets and online platforms. The strategy will seek faster aggregation of data and shared intelligence so indicators seen in one sector — for example account takeovers or synthetic‑ID patterns on social platforms — can trigger preventive measures in banking and payments systems.

Speakers identified several barriers to timely data sharing. Fragmented data holdings, legacy IT that cannot process streaming signals, legal and privacy constraints, and a lack of standard formats and incentives were cited as factors that prevent a comprehensive early‑warning picture. These gaps make it harder to link related activity across channels and to act before funds are moved out of the financial system.

To counter AI‑enabled impersonation and synthetic identities, the strategy will promote wider use of behavioural biometrics and device signals, stronger tokenisation of credentials and cross‑industry identity hubs that can validate attributes without exposing raw personal data. The plan also encourages privacy‑preserving techniques for intelligence sharing so firms can exchange indicators while complying with data protection rules.

Securing instant payments is a further focus. The strategy will press payment providers and banks to introduce layered controls such as transaction‑level risk scoring, real‑time throttles for unusual flows, clearer liability rules and forensic tagging to allow faster tracing and freezing of suspicious payments. Panelists said combining behavioural signals with predictive analytics and cloud‑native fraud platforms should reduce false positives while enabling quicker intervention.

Emerging risks in crypto and decentralised finance will be brought into mainstream anti‑money‑laundering and fraud obligations. Organised actors are using on‑chain services and cross‑border rails to obscure provenance; firms with crypto exposure will need stronger monitoring, improved tracing tools and closer cooperation with banks and exchanges. Panelists also flagged the need for firms to assess long‑term migration strategies as quantum computing capabilities advance and cryptographic protections may require upgrades.

Industry participants urged firms to invest in analytics, adapt governance to allow faster cross‑sector escalation, and modernise legacy systems that block streaming intelligence. They called for regulation and standards that create incentives and legal clarity for quicker data sharing.

The Fraud Strategy 2026–2029 follows UK reviews that documented rising losses and growing scam sophistication. The plan asks public and private sectors to align technical, legal and operational capabilities to detect criminal innovation earlier and to prioritise system‑level prevention and collective defence.