Fighting Fraud in the “AI Era”: Lessons from the UK’s Tech and Partnership Strategy

Fraud is now the most common crime in many countries, costing the global economy more than $1 trillion annually. Beyond financial damage, it inflicts severe emotional, psychological, and reputational harm on individuals and institutions. From sextortion scams exploiting social media platforms to sophisticated identity fraud powered by artificial intelligence, the scale and complexity of the problem are escalating rapidly.

The UK has emerged as a test case for how countries can respond. Its strategy blends public-private partnerships (PPPs), regulatory reform, and technology-driven solutions, creating a coordinated model that could inspire similar approaches across Asia-Pacific.

Why Fraud Feels Different Today

Fraud has always been a persistent threat, but three forces make it especially dangerous now:

• Digital acceleration. Instant payments, e-wallets, and BNPL products create opportunities for fraud to move faster than detection systems.

• AI-powered crime. Fraudsters are using deepfakes, synthetic identities, and manipulated media to bypass verification controls and trick consumers.

• Cross-border networks. Fraud does not respect borders. Scams in one country often originate in another, making international cooperation essential.

The result is a crime type that grows in volume, speed, and sophistication with each passing year.

The UK’s Multi-Layered Response

Recognising the severity of the issue, UK authorities have stepped up their response through several measures:

• Public-Private Partnerships (PPPs). Financial institutions, regulators, tech firms, and law enforcement agencies are now collaborating to share intelligence and align responses. The Centre for Finance, Innovation and Technology (CFIT) is one such initiative, developing new verification and data-sharing tools for fraud prevention.

• Regulatory reforms. In July 2025, the government updated the Independent Review of Disclosure and Fraud Offences, calling for tougher sentencing, clearer definitions of fraud, and expanded powers to combat online-enabled scams.

• Data-driven initiatives. The National Fraud Initiative (NFI) prevented and detected £510 million in fraud and error between 2022 and 2024, the highest figure in its history. This success highlights the power of combining data analytics with cross-sector collaboration.

• Advanced AI adoption. AI and machine learning systems are being used to screen transactions in real time, integrate global risk data, and automate third-party due diligence. These tools make it possible to spot red flags faster while reducing false positives that frustrate customers.

Lessons for Asia-Pacific

While the UK’s challenges are unique, many of the underlying trends apply equally to Asia-Pacific, where fraud is also surging.

• Sextortion and social scams. Just as in the UK, APAC countries are seeing a rise in sextortion scams targeting young people through messaging apps and gaming platforms. In the Philippines and Indonesia, these scams often spread virally through social media.

• Romance fraud. India, which accounted for 12% of flagged romance scam profiles globally in 2024, continues to face major challenges in protecting consumers from emotional and financial harm.

• AI-enabled fraud. In Hong Kong, regulators have warned of deepfake-enabled account takeovers, while Australian authorities are raising concerns over synthetic identity fraud tied to BNPL and loan products.

• Instant payment risk. With regional systems like India’s UPI, Singapore’s PayNow, and Malaysia’s DuitNow enabling real-time transfers, funds can move offshore in seconds. This demands equally real-time fraud detection and response mechanisms.

The UK’s emphasis on PPPs and AI adoption offers a template for APAC markets, where collaboration across regulators, banks, and technology providers is still developing.

Building a Future-Ready Fraud Strategy

The fight against fraud in the AI era requires a new mindset and practical steps:

1. Embed partnerships. Just as in the UK, fraud prevention should be treated as a shared responsibility across the public and private sectors. Information-sharing platforms are critical.

2. Leverage AI responsibly. Advanced systems can analyse behavioural signals, identity linkages, and anomaly patterns at scale, but they must also be explainable and auditable to meet regulatory standards.

3. Balance trust and friction. Consumers demand seamless experiences, but fraud defences must be strong. The challenge is to reduce false positives while blocking genuine threats.

4. Regional cooperation. For Asia-Pacific, cross-border coordination is essential. Fraudulent funds often move across jurisdictions, requiring regulators and institutions to align in real time.

5. Continuous adaptation. Fraudsters innovate constantly. Systems, regulations, and partnerships must evolve at the same pace, if not faster.

Conclusion

Fraud today is borderless, technology-driven, and deeply personal in its impact. The UK’s approach—combining partnerships, regulation, and technology—demonstrates how countries can shift from reactive measures to proactive, systemic defences.

For Asia-Pacific, where digital adoption is accelerating and fraud networks are expanding, these lessons are urgent. By investing in collaboration, advanced tools, and regional intelligence-sharing, the region can not only respond to today’s scams but also build resilience against tomorrow’s threats.

Fraud is adapting quickly. Defences must adapt faster.