In recent months, the UK’s financial crime regulation and enforcement have increasingly focused on AI-driven fraud, crypto asset governance, and illegal digital investment marketing. This underlines the ongoing shift in how financial crime is being perpetrated across the digital landscape. In particular, the Financial Conduct Authority (FCA) has intensified its clampdown on illegal crypto trading and unauthorised online ‘finfluencers’, while record-breaking fraud cases enabled by AI continue to emerge. This article explores three of these developments in more detail.

FCA leads global crackdown on illegal ‘finfluencers’

The FCA has coordinated an international enforcement initiative targeting unlawful financial promotions by so-called ‘finfluencers’, as regulators intensify scrutiny of investment marketing conducted through social media channels.  

Finfluencers are social media personalities who use their platforms to market financial products and share investment insights or advice with followers. While many do so legally, others promote products or services without the required authorisation through online posts and videos. They often project an image of wealth and success, sometimes misleadingly, to attract audiences and build credibility.

Seventeen regulators worldwide participated in IOSCO’s week-long operation targeting unlawful online investment promotions and unauthorised finfluencer activity. The initiative, which began on 20 April 2026, involved enforcement action, consumer awareness campaigns, and educational initiatives for finfluencers seeking to promote financial products responsibly.  

In the UK, the FCA secured a guilty plea from Aaron Chalmers for unlawful financial promotions made through social media. Criminal proceedings have also been initiated against two further individuals for similar alleged conduct.

The regulator also issued four targeted warning letters to individuals suspected of making unauthorised financial promotions, published 34 warning notices against unauthorised firms or individuals, and updated a further 14 existing alerts. In addition, the FCA submitted 120 account takedown requests to social media platforms hosting unlawful finfluencer content.

The regulator has urged social media platforms to take stronger preventative action against illegal financial promotions, stating that they are not doing enough to enforce their own policies against unlawful content.

Clients and consumers more generally are reminded to use the FCA’s Firm Checker to confirm whether a firm is authorised by the FCA and has permission to offer the services being advertised. This can help lower the risk of becoming a victim of fraud. The Firm Checker also flags unauthorised firms and individuals included on the FCA’s Warning List.

The cooperation of seventeen regulators represents a major advance in tackling illegal content on a global scale. While enforcement action against individual finfluencers remains vital, the greater challenge lies with the social media platforms themselves. Future progress will depend on whether the FCA and its international counterparts move beyond takedown requests towards stronger sanctions, requiring social media and technology firms to implement more robust compliance and fraud prevention frameworks.

FCA takes first enforcement action against illegal crypto trading

The FCA has launched its first multi-agency operation targeting unlawful peer-to-peer crypto trading across multiple sites in London.

Working alongside HM Revenue & Customs (HMRC) and the South-West Regional Organised Crime Unit (SWROCU), the FCA attended eight locations suspected of operating unlawful peer-to-peer crypto trading. Cease and desist letters were served at each site requiring trading activity to stop immediately. Evidence gathered during the visits is now being used in several live criminal investigations.

Peer-to-peer trading allows individuals to buy and sell crypto assets directly with one another instead of through a centralised exchange. Businesses carrying out such activity must hold the appropriate registration. At present, no peer-to-peer crypto traders or platforms are registered with the FCA in the UK.

The FCA has already pursued enforcement action against unregistered crypto asset businesses, including securing the prosecution of an individual involved in operating an illicit network of crypto ATMs. In June 2024, the regulator also partnered with the Metropolitan Police in an operation that led to the arrest of two individuals accused of running an unlawful crypto asset exchange.

According to the Government’s National Risk Assessment of Money Laundering and Terrorist Financing, crypto assets are playing an increasing role in the concealment and movement of criminal funds. The FCA has stated that it will continue working with the UK and overseas agencies to tackle financial crime and strengthen consumer protection.

This recent update from the FCA illustrates that the regulator is already taking proactive enforcement action against individuals involved in unregulated crypto trading ahead of the launch of the UK’s broader crypto regulatory regime, which is expected to take effect at the end of 2027. The regime follows the introduction of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, which extend the FCA’s regulatory remit to cover new crypto asset activities. It also sends a clear message that firms and individuals should not regard the interim period as a free pass.

AI-enabled fraud drives rise in UK fraud reports

Artificial intelligence-enabled scams contributed to a record 444,000 fraud cases being reported in the UK in 2025, according to Cifas, the not-for-profit fraud prevention organisation. The total marked a 6% increase on 2024, with criminals increasingly using AI tools to scale deception and target victims more efficiently.

Cifas said fraud tactics are shifting towards account takeover scams, where criminals use stolen personal data to gain access to mobile phone, banking and online shopping accounts before making unauthorised transitions. According to the Fraudscape report, these were among the most commonly targeted.

The organisation warned that fraud is becoming more sophisticated and organised globally, with criminals using AI-powered impersonation, synthetic identifies and “fraud-as-a-service” tools that enable others to commit offences. 

Identity fraud remained the most reported offence, while more than 22,000 cases of money muling were also recorded, where individuals allow their bank accounts to be used to move proceeds of crime.

According to the UK Government’s Fraud Strategy, which was launched in March 2026, it is thought that fraud accounts for up to 45% of all crime committed in the UK, whilst a recent survey by Barclays found that only 36% of consumers felt confident that they could identify an AI-enabled scam.

It will be interesting to see how the remainder of the year develops, particularly whether reported fraud cases diverge from last year’s levels and whether the growing use of AI tools by criminals leads to a sharper increase.