Reported losses associated with hacked email, social media, and other online accounts in the UK surged by 417% over the last financial year, reaching £6.3 million ($8.5 million) according to the City of London Police. This significant increase, from £1.2 million ($1.6 million) the previous year, is attributed in part to changes in reporting practices rather than a dramatic rise in actual attacks. The number of victims reporting financial losses jumped from 226 to 2,325, marking a staggering 929% increase.
The rise in reported losses coincides with the launch of Report Fraud, a new national service that replaced the criticized Action Fraud system in January. Police noted that 92% of the account-hacking reports involving financial loss were recorded in the latter half of the financial year, suggesting that the new system has improved the identification and recording of incidents.
Despite these increases, officials caution that the figures likely represent only a small fraction of total cybercrime losses, as they depend on voluntary self-reporting. The police have indicated that the improvements in reporting make direct year-on-year comparisons challenging, as some of the increase may reflect better identification of incidents rather than a true rise in offenses.
Fraud and Cybercrime Landscape
Fraud has become the most prevalent crime in England and Wales, accounting for approximately 40% of offenses recorded in official surveys. The police estimate that over two-thirds of these fraud cases are cyber-enabled, meaning technology plays a role in facilitating the crime. In a separate category, Report Fraud recorded 64,608 reports of cyber-dependent crimes, such as hacking and malware, during the 2025-26 period, a 34% increase from the previous year.
Reported losses from cyber-dependent crimes rose by 90% to £14.3 million ($19.3 million), with the average loss per victim increasing to £220 ($309) from £155 ($209). However, the total cost of online fraud is likely higher, as various types of fraud, including investment scams and online shopping fraud, are categorized separately.
Challenges in Reporting and Response
The assessment highlights that hacking and fraud can be recorded separately even when they are part of the same incident. For instance, a victim whose email account is compromised may report the resulting fraud without realizing the account was hacked. Additionally, organizations accounted for 2,271 cybercrime reports, with small and medium-sized businesses representing 62% of cases, often due to limited cybersecurity resources.
While ransomware figures showed a decline, with 323 reports received during the year—down 25% from 430—police warned that this may reflect underreporting rather than a decrease in attacks. Proposals for mandatory reporting of ransomware incidents and payments are currently stalled following a government consultation.
For further details, see the full report by The Record.
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