The Financial Conduct Authority opened just one enforcement investigation into mortgage fraud in 2025, according to Freedom of Information data obtained by client due diligence platform Thirdfort.
The figure marks a significant decline from the three to four cases per year recorded in previous years, bringing activity levels close to those last seen during the Covid pandemic. Since 2018, the FCA has opened a total of 18 mortgage fraud investigations.
Questions over regulatory capacity
The low enforcement figure has raised questions about whether regulatory action is keeping pace with the evolving nature of financial fraud. The data comes as the Home Office published its Fraud Strategy 2026–2029 in March, acknowledging that fraud has become more global and digitally advanced.
Olly Thornton-Berry, co-founder and CEO at Thirdfort, said: “One FCA investigation in an entire year is a striking number, and we don’t think it reflects the true scale of the problem. The FCA is one piece of a wider enforcement picture – the NCA, the SFO and local police forces all play a role – but the direction of travel is concerning.”
The apparent reduction in enforcement activity comes at a time when fraud is becoming increasingly sophisticated. The UK housing market faces muted sales for the next 12 months, which could create additional pressure points for fraud prevention as transaction volumes fluctuate.
Technology accelerating fraud risk
Thornton-Berry noted that artificial intelligence is accelerating the shift towards more convincing fraudulent activity. “Fraud is getting faster, more convincing and harder to detect, and AI is accelerating that shift,” he said.
He added that while the Government’s new fraud strategy represents progress, “enforcement action alone will never be enough when fraudsters can generate convincing fake identities and documents.”
The low investigation numbers highlight potential gaps in regulatory oversight at a time when property transactions remain vulnerable to fraud. With stamp duty costs deterring homeowners from moving, reduced transaction volumes may also affect the detection and reporting of fraudulent activity across the sector.
The FCA’s enforcement figures contrast with broader concerns about the scale of fraud in the UK financial system, suggesting either a reduction in detected cases or a shift in how mortgage fraud investigations are being handled across different enforcement agencies.
