Payment fraud has reached a level of profitability comparable to the global illicit drug trade, according to a recent analysis by the Royal United Services Institute (RUSI). In 2025, worldwide losses from authorised payment fraud—where victims are tricked into voluntarily transferring money—exceeded £329 billion.

RUSI’s report highlights that much of this activity targets individuals in the United Kingdom, with approximately two-thirds of payment fraud cases traced back to overseas sources. The institute noted that authorised payment fraud encompasses a range of schemes, including impersonation scams in which criminals pose as banks or other trusted entities, as well as romance scams that exploit fake online relationships to extract funds.

The scope of the problem is extensive, with the report estimating that roughly half of the global population faces scam attempts on a weekly basis. Interpol data reveals a 54 percent increase in fraud-related alerts between 2024 and 2025, underlining the growing scale and complexity of these crimes. RUSI also warned that financial scams have become a significant revenue stream for “polycriminal” organized crime groups, which may also be involved in corruption and terrorism financing.

In the United Kingdom, fraud remains a pervasive concern, with more than four million reported cases in 2025 resulting in losses totaling £1.28 billion, according to figures from UK Finance, an industry trade group. In response, regulatory changes implemented in 2024 require banks to reimburse victims of authorised payment fraud up to £85,000, aiming to mitigate customer losses.

RUSI emphasized that authorised payment fraud should no longer be viewed merely as a consumer protection issue but recognized as a serious security threat with broader criminal and societal implications. The findings suggest an urgent need for coordinated global efforts to address the evolving tactics of payment fraud and to enhance legal and technological defenses against these financial crimes.