BDO’s FraudTrack report: London and the South East top fraud hotspot list as losses hit £5.5bn UK-wide

London and the South East have topped a list of regional fraud hotspots, as reported losses to fraud and economic crime hit £5.5bn UK-wide in 2025.

According to BDO’s latest annual Fraudtrack report, London and the South East continue to dominate as the UK’s primary hotspot. The region alone accounted for more than a quarter of all reported cases and over 90% of total reported value. The figures were driven by volume and by exceptionally high-value incidents, including a £4.8bn cryptocurrency money laundering scheme.

The report, which analysed reported UK fraud and economic crime cases valued at £50,000 and above between 1 December 2024 to 30 November 2025, has revealed a geographical spread of fraud and economic crime.

Yorkshire experienced one of the most significant shifts year-on-year, rising from eighth place (in reported value) in 2024 to second in 2025.

Overall, the value of reported fraud and economic crime increased by almost 900% to £5.5bn in 2025, up from £550m in 2024, according to BDO’s report. The increase was due largely to five high value cases.

Money laundering cases accounted for the lion’s share of the total at £4.9bn, including a £4.8bn cryptocurrency money laundering scheme.

Frauds perpetrated by individuals contributed a further £207 million, while management fraud rose from £11m in 2024 to £195m in 2025, signalling a growing vulnerability within organisational governance and oversight.

Collectively, these three fraud and economic crime types accounted for 97% of the total value of reported fraud in 2025.

Stephen Peters, BDO partner and Head of Investigations, said: “This year’s report demonstrates a fraud landscape that remains geographically concentrated in London and the South East but increasingly complex. Several regions appear to be experiencing sustained high-impact activity, reinforcing the persistence and evolution of large-scale fraud across the UK.”

The report found that the threat of fraud is not diminishing, it is adapting. While cutting-edge AI tools are being harnessed to enhance fraud detection, AI-enabled frauds are a key concern for the future. Among them, the increasing use of deepfakes – AI-generated audio, video, images, and text that closely mimic real individuals – which can lead to executive impersonation, authorisation fraud and misleading communications.

Peters added: “Fraud is becoming more technologically enabled, more adaptive and more resilient. Yet despite significant advances in detection and prevention, billions of pounds continue to be lost each year.

“If regulatory and legal frameworks are to remain effective, they must evolve at pace. Renewed focus, modernised enforcement tools and genuine cross-sector collaboration will be required. Without sustained reform, the financial and societal costs will continue to rise.”

Earlier this year, the Government announced a three-year £250m strategy to combat fraud, including plans for a new Online Crime Centre, combining expertise from across the government, police, intelligence agencies, banks, mobile networks and major tech firms, working to tackle fraud together and protect the public.