Our Financial Crime 360 report reveals rising fraud risks, uneven tech readiness, regulatory divides, and strong investment ahead.
The payments ecosystem faces an increasingly complex battle against financial crime. Fraudsters are innovating faster, regulations are struggling to keep pace, and technology is both a weapon and a shield. Against this backdrop, The Payments Association commissioned its Financial Crime 360 State of the Industry 2025 survey to capture the realities facing professionals on the front line of financial crime prevention.
The research draws on responses from 158 specialists worldwide, with a strong UK focus that reflects the market’s position at the heart of European financial services. Two-thirds of participants are UK-based, but the study also incorporates perspectives from 32 additional countries across six continents. Senior voices dominate the sample: nearly three-quarters of respondents are VP level or above, ensuring the findings reflect both strategic and operational leadership across the industry.
Here are four insights from the survey that stand out.
1) Fraud remains the clear and present danger
More than seven in ten respondents cited fraud as their top concern for the year ahead. From authorised push payment scams to identity fraud, the threat continues to grow in both scale and sophistication. AI-enabled crime is now firmly on the radar, too, with over half of respondents worried about criminals exploiting artificial intelligence to carry out deepfake attacks, automated data harvesting, and highly targeted social engineering campaigns.
2) Technology readiness is mixed
Technology is widely seen as the critical defence against financial crime, yet the survey reveals uneven levels of preparedness. In comparison, most organisations have strong digital identity verification systems in place; only 22% report full readiness when it comes to AI and machine learning capabilities. This gap between intent and capability suggests that while firms are investing, many remain behind the curve in deploying advanced tools at scale.
3) Regulation divides opinion
The industry is split on whether current frameworks are fit for purpose. Just over half of respondents believe UK fraud regulation is adequate, while nearly as many feel significant updates are needed. Confidence in wider policy effectiveness is even weaker, with most rating current measures as only moderately effective. The result is a sector that recognises regulation as essential, but questions whether it is agile enough to address emerging risks.
4) Investment and education are on the rise
Despite the challenges, the outlook for investment is strong. Half of organisations expect to increase spending on fraud prevention in the next 12 months, with cloud infrastructure, AI, and digital identity systems at the top of the priority list. Respondents also pointed to customer education as a critical but under-deployed strategy. Equipping customers to recognise fraud attempts and understand new digital risks is increasingly seen as a front-line defence.
Looking ahead
The Financial Crime 360 State of the Industry 2025 survey paints a picture of an industry under sustained pressure but determined to respond with investment, collaboration, and innovation. Fraud is evolving, technology adoption is uneven, and regulatory frameworks remain contested. Yet there is also optimism: most professionals believe the industry has the ambition and capability to design out economic crime in the years ahead.
The full report offers a deeper breakdown of the findings, including technology investment priorities, sector-specific analysis, and commentary from industry leaders such as Michael Morris (Cleafy), Mark Goldspink (TPA), Justin Clements (Chargebacks911), John Hamilton (ChargebackStop), and Dal Sahota (LSEG Risk Intelligence).
