23 June 2025

A survey of 800 financial crime professionals across 17 countries, published in BioCatch’s ‘Dark Economy Survey,’ reveals that 65% of UK fraud and compliance leaders believe criminals are now more skilled at laundering illicit funds than banks are at catching them.

The report, ‘Insights into the Invisible: Perspectives on Evolving Fraud and AML Challenges,’ explores how the Dark Economy — a shadowy realm linked to human trafficking, drug trafficking, and terrorism — continues to expand and adapt. According to Jonathan Frost, Director of Global Advisory for EMEA at BioCatch, combating this threat requires financial institutions to adopt behaviour-based detection strategies and foster real-time, collaborative efforts against organized crime.

UK banks are notably proactive in deploying advanced behavioural analytics: 84% of UK respondents report using these tools to identify fraud, surpassing the global average of 76%. Despite increased investment — 57% of UK firms plan to boost technology spending in the coming year, focusing on data privacy, cybersecurity, and regulatory compliance — many banks still face substantial losses. Approximately 44% of UK respondents reported annual fraud losses between £8-20 million, a figure considerably higher than the global average of 26%. Some banks face losses exceeding £40 million annually.

Globally, attempted fraud and financial losses are rising across most regions, with the exception of Asia Pacific, where nine of Australia’s top ten banks utilize BioCatch’s behavioural security technology. Australian banks have also joined the BioCatch Trust network, a platform for real-time financial crime intelligence sharing designed to strengthen defenses during transactions.

The scale of illicit financial activity is immense: Nasdaq’s ‘Global Financial Crime Report’ estimates US$3.1 trillion in illicit funds moved through the global financial system in 2023 alone. BioCatch’s intelligence reveals a significant increase in mule accounts — used to launder criminal proceeds — detected across its customer base. In 2024, nearly 2.3 million mule accounts were identified, with over 500,000 detected so far in 2025, highlighting how criminals are increasingly laundering money through major banks worldwide.

The influence of emerging technologies on criminal activities is widely acknowledged among UK professionals. An overwhelming 84% attribute increased criminal sophistication to dark web forums, 82% cite AI as a factor, and 74% point to social media. Fraud is often linked to broader criminal activities; 80% of UK respondents believe that fraud is connected to human trafficking, drug crime, or terrorism.

While some progress has been made in collaborative efforts, significant challenges remain. Less than half (46%) of UK professionals report sharing intelligence weekly with other banks, hindered by privacy regulations (28%), fears of data breaches (25%), and concerns about misuse of information (25%). The need for stronger regulatory intervention is widely recognized, with 89% of respondents advocating for increased government oversight to combat money laundering effectively. Only 13% believe individual actors pose a greater risk than organized groups.

Other concerning findings include low confidence levels: just 18% of global respondents feel capable of accurately identifying money mule accounts, and only 19% of UK professionals say law enforcement is involved in over half of suspected cases. While 77% of worldwide respondents believe progress is being made in the fight against financial crime, the optimism diminishes to 55% when reflecting on their own organizations’ efforts.

Overall, 84% of respondents agree that tackling the Dark Economy is a top priority in preventing financial crime, emphasizing the urgent need for more advanced, collaborative, and well-regulated approaches to stay ahead of increasingly sophisticated criminal networks.