On 22 October 2026, more than 300 financial crime professionals gathered at The Tower Hotel in London for Transform Finance’s 3rd Annual Fraud & Scams Leaders Summit UK to examine the evolving nature of fraud and the challenges facing financial institutions in preventing financial crime. 

Discussions addressed a range of issues, including money mule networks, authorised payment scams, intelligence sharing, artificial intelligence (AI), fraud governance and the increasing sophistication of criminal activity. 

A central theme emerged throughout the event: while financial institutions continue to strengthen their detection capabilities, effective fraud prevention requires a broader approach that considers customer behaviour, criminal networks, intelligence sharing and the ability to intervene before financial harm occurs. 

The discussions highlighted several areas where existing approaches are being challenged by changing criminal methods and growing operational pressures. 

Money Mule Networks: Strengthening Detection and Disruption 

Money mule activity remains a significant concern for financial institutions, particularly as organised criminal networks continue to adapt their recruitment methods and exploit individuals across different age groups. 

Discussions highlighted the limitations of relying solely on transaction monitoring to identify suspicious activity. In business banking, information relating to company characteristics, directors, geographic connections and credit risk may provide additional context when investigating potentially linked accounts. Understanding these relationships can help institutions move beyond individual cases towards identifying wider criminal networks. 

Particular attention was given to the recruitment and exploitation of young people. Organised crime groups were described as targeting teenagers through social media and school environments, often presenting mule activity as an opportunity to earn money without fully explaining the consequences. Financial hardship and social isolation were also identified as factors that may increase susceptibility to recruitment. 

The discussions reinforced the importance of distinguishing between individuals knowingly participating in criminal activity and those who may have been manipulated, exploited or impersonated. Addressing money mule activity therefore requires a combination of effective monitoring, customer engagement, education and intelligence sharing to support the identification and disruption of criminal networks. 

Authorised Payment Scams: Strengthening Customer Protection 

The prevention of authorised payment scams continues to present challenges for financial institutions, particularly where customers approve transactions while acting under the influence of criminal manipulation. 

Although a payment may successfully pass authentication checks, this does not necessarily establish that the customer understands the circumstances surrounding the transaction. Discussions highlighted the importance of considering behavioural indicators and changes in customer activity when assessing potential scam risks. 

Greater attention was also given to the role of behavioural science in designing effective customer interventions. Individuals may respond differently to fraudulent approaches depending on their personal circumstances, motivations and financial objectives. For example, someone approaching retirement and considering an investment opportunity may require a different approach from a younger customer attracted to an AI-powered trading platform. 

The challenge for financial institutions is to introduce proportionate interventions that support customer protection without unnecessarily disrupting legitimate transactions. This requires careful consideration of when additional engagement is appropriate, how warnings are communicated and whether existing measures are effective in influencing customer decisions before funds are transferred. 

 
Intelligence Sharing: Addressing Barriers to Effective Collaboration 

Effective intelligence sharing remains an important component of fraud prevention, particularly where criminal activity involves multiple financial institutions, payment services and other organisations. 

Discussions examined the opportunities provided by the Economic Crime and Corporate Transparency Act (ECCTA), alongside continuing challenges relating to privacy requirements, operational resources and the practical implementation of information-sharing arrangements. 

While institutions may have access to relevant intelligence, delays in communicating that information can reduce opportunities for intervention. Manual requests between banks, combined with the speed at which payments can move, create difficulties in identifying and disrupting criminal activity before funds are transferred. 

Courier fraud was highlighted as an example of where closer cooperation between financial institutions and law enforcement can support earlier intervention. Discussions also considered cases involving victims being directed to purchase high-value goods, including gold and luxury items, where unusual activity may provide opportunities for investigation. 

The discussions further emphasised the need for collaboration beyond the financial services sector. Fraudulent activity frequently begins through telecommunications, social media and other digital channels before reaching the banking system. Strengthening coordination between these organisations remains an important consideration in developing a more comprehensive approach to scam prevention. 

Artificial Intelligence: Opportunities, Emerging Risks and Governance 

AI continues to influence both the development of fraud prevention capabilities and the methods used by criminal networks. 

Discussions highlighted considerable differences in the maturity of AI adoption across financial institutions. While some organisations are incorporating AI into detection and investigative processes, others are exploring more advanced applications, including agentic systems capable of supporting investigative activities and undertaking defined tasks. 

Alongside these opportunities, emerging threats involving synthetic identities, deepfakes and AI-enabled impersonation are creating additional challenges for existing controls. 

Particular attention was given to the potential manipulation of digital reputation. Criminal networks may seek to establish apparently credible business profiles through individuals with clean backgrounds and deliberately constructed online information. Such practices raise questions about the reliability of information used during customer due diligence and onboarding. 

These developments reinforce the importance of maintaining effective governance, oversight and human judgement as AI capabilities evolve. Institutions must consider not only how AI can strengthen fraud prevention, but also how existing controls can respond to increasingly sophisticated methods of deception. 

Fraud Governance: Balancing Prevention, Risk and Customer Experience 

Fraud prevention is increasingly influenced by decisions made across different business functions, extending beyond the responsibilities of fraud and financial crime teams. 

Discussions highlighted the challenges associated with introducing additional controls into customer payment journeys. While stronger interventions may help prevent scams, they can also create friction and affect customer experience, leading to competing priorities between fraud prevention, product development and operational teams. 

The continued development of faster payment systems and the limitations of legacy infrastructure add further complexity. Financial institutions must consider how prevention measures can be introduced effectively while maintaining efficient services and responding to changing risks. 

These challenges underline the importance of involving fraud and compliance functions in product development and establishing clear approaches to risk appetite, accountability and control effectiveness. 

Effective fraud governance therefore depends on aligning prevention objectives with wider organisational priorities and ensuring that decisions concerning customer protection are supported across the institution. 

Strengthening the Response to Fraud and Scams 

The discussions at the 3rd Annual Fraud & Scams Leaders Summit UK reinforced the importance of moving beyond the detection of individual suspicious transactions towards a more coordinated approach to fraud prevention and disruption. 

Money mule activity demonstrates the need to understand criminal networks and recruitment methods. Authorised payment scams highlight the importance of customer behaviour and timely intervention. Intelligence sharing remains essential to supporting earlier disruption, while developments in AI introduce both opportunities and additional risks. 

Across these areas, effective fraud prevention depends on the ability of financial institutions to connect relevant information, strengthen cooperation and ensure that prevention measures can be applied in practice. 

As criminal methods continue to evolve, the challenge is not simply to identify suspicious activity, but to ensure that available intelligence can support timely decisions and effective intervention. 

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