The first few months of 2025 have seen a troubling shift in the UK financial crime landscape. Fraudsters are now targeting savings accounts, exploiting potential gaps in financial crime controls. But it’s not just external actors doing damage - insider involvement has also been a focus. As threats evolve, some controls are struggling to keep pace. From weaknesses in fraud systems to overlooked internal risks, this blog unpacks the triple threat facing financial institutions today and provides practical tips and actionable insights to address these issues and strengthen defences moving forward.
Savings Accounts See Huge Surge in Mule-Linked Activity
Source: Finextra
Recent data from Synectics Solutions' National SIRA database has revealed a concerning trend: money mules are increasingly targeting savings accounts rather than current accounts in an attempt to bypass strengthened fraud controls.
The statistics are eye-opening - while there's been a 17% overall increase in accounts "being used to receive fraudulent or disputed funds," savings accounts have seen a staggering 63% jump in fraud filings compared to just 12% for current accounts.
This shift appears to be a direct response to the tighter controls introduced by major banks following last October's changes to APP fraud mandatory reimbursement requirements. As the larger financial institutions beef up their defences, criminals adapt their tactics accordingly.
What This Means for Financial Institutions
This trend poses a particular risk for smaller firms with limited budgets for financial crime prevention technology. These organisations may find themselves targeted at volumes they simply cannot manage, both operationally and financially.
If you're an MLRO facing these challenges, consider the following:
- Reviewing your risk assessment and raising awareness of this heightened threat with your board
- Evaluating the effectiveness of your current controls against these evolving threats
- Running test scenarios using synthetic data to stress-test your existing systems
- Building a business case for investing in appropriate controls before your firm becomes part of the next round of fraud statistics
This data underscores how quickly fraudsters can pivot their strategies. Complacency could be costly even if you believe your customer base is low-risk. While criminals can shift tactics rapidly, financial institutions must navigate governance processes - making proactive risk assessment crucial.
Bank Manager and Friend Sentenced for £7.3 Million Fraud Scheme
Source: UK Finance
A successful prosecution by the Dedicated Card and Payment Crime Unit (DCPCU) has resulted in hefty prison sentences for a bank manager and his accomplice who opened nearly 400 fraudulent business accounts over two years.
These accounts were used to launder approximately £7.3 million in proceeds from fraud committed against UK and international businesses, charities, and individuals. The investigation uncovered counterfeit ID documents at the defendants' properties that matched the details of the fraudulent accounts, linking them directly to the crime.
Between them, the pair received almost ten years in prison for their roles in this elaborate scheme.
The Insider Threat Challenge
This case highlights a critical vulnerability that many organisations face: the insider threat. Despite robust external controls, trusted employees with internal access can cause significant damage.
Financial crime teams must collaborate closely with HR to implement effective vetting processes and proportionate ongoing monitoring. CIFAS offers excellent resources for managing fraud risks, including a dedicated Insider Threat database and expert advisory services.
NatWest Money Laundering Case: Perpetrators Sentenced
Source: CPS
Many will remember the landmark 2021 case in which NatWest was fined almost £265 million after the FCA pursued criminal charges against the bank for failing to comply with money laundering regulations.
The case involved a jewellery business in Bradford that deposited £365 million, with an astonishing £264 million in cash, despite KYC information indicating the company would not handle cash transactions.
Last month, four individuals involved in this "eye-watering" money laundering scheme were sentenced to a collective 42 years in prison for their roles in one of the biggest cases in UK legal history.
The operation was brazen. Cash was transported in holdalls, hidden in fast food boxes, and even concealed inside children's toys.
Control Failures That Enabled Money Laundering
NatWest's systemic control failures created the environment where this money laundering operation could happen.
These failures included:
- Monitoring system errors that misinterpreted cash deposits as cheques, resulting in less stringent scrutiny
- Serious flaws in the scrutiny of internal suspicions
- Failure to respond to multiple money laundering "red flags"
This case emphasises the importance of robust testing and assurance programmes to ensure data quality and effective monitoring systems. The FCA FinCrime Guide remains an excellent resource for reviewing your processes through the regulator's lens and provides a great template for demonstrating financial crime risk management to your board.
Stay Vigilant
These cases demonstrate that financial crime prevention requires constant vigilance and adaptation. As criminals evolve their tactics, financial institutions must continually assess and strengthen their controls.
At Jade ThirdEye, we're here to support you—whether it’s sharing best practices, offering expert guidance, or simply being a sounding board as you navigate evolving financial crime threats.
You can learn more about our Financial Crime Monitoring system here, or contact us to schedule a meeting with one of our experts.