Why Deregulation Isn’t Growth—It’s a Gift to Financial Criminals

Imagine checking your bank balance only to discover it’s wiped clean overnight—your savings gone, your financial security shattered, and your emotional stability thrown into chaos. For millions of people worldwide, this nightmare is a reality. Financial crime isn’t merely a statistic; it’s a devastating personal crisis.

Incredibly, almost half of the global population encounters a scam at least once a week, costing everyday people over $1 trillion annually. In the UK alone, fraud constitutes 38% of all crimes, yet globally, a shocking 97.5% of fraud cases are never prosecuted. Cybercrime fares even worse, with a prosecution rate of just 0.05%.

Amidst this crisis, you’d expect governments to strengthen financial safeguards. Yet the UK government’s recent announcement of their “Plan for Change” promotes precisely the opposite—a deregulation agenda that abolishes key watchdogs like the Payment Systems Regulator (PSR), arguing that less regulation means economic growth and more money in people’s pockets. Note, bank transfers and E-wallets dominate as scam payment methods.

Check out the facts:

• Nearly half the global population encounters a scam at least weekly.
• One in three scams involves digital wallets or bank transfers.
• Annual global losses from scams total $1.026 trillion.
• 25.5% of people worldwide have lost money to scams.
• Only 7% of scams are officially reported.
• Fraud is the second most reported crime worldwide.
• In the UK, fraud represents 38% of all reported crimes.
• Just 2.5% of fraud cases are prosecuted globally.
• Only 0.05% of cybercrime cases globally result in prosecution.
• Scamming operates as a global, organised industry.

[Source: Global Anti-Scam Alliance report 2023.]

But who’s really benefiting?

Who Pays the Price for Deregulation?

Contrary to government claims, deregulation does not benefit working families—it primarily serves financial elites in the City of London. While deregulation is portrayed as removing burdensome barriers for small businesses, the real-world impact is far darker. Reduced oversight creates perfect conditions for scammers to thrive, endangering personal and economic security.

Let’s look at the reality behind the rhetoric. Abolishing the Payment Systems Regulator, as responsible for overseeing secure financial transactions, is not removing needless red tape—it’s removing your first line of defence against scammers. Payment scams involving transfers and e-wallets already dominate fraudulent activities, accounting for one-third of scams. The government’s move essentially opens a wider door for criminals to exploit vulnerabilities without fear of meaningful consequence.

The Human Cost of Financial Crime

Behind the eye-watering financial losses lies the devastating emotional toll on victims. Lives aren’t just financially ruined—they’re emotionally shattered. Anxiety, depression, PTSD, social isolation, and even physical health deterioration become commonplace. Individuals, families, and entire communities are plunged into despair, often with little hope of justice or recovery.

Take the story of Ian Davis, a retiree who lost over ￡600,000 through regulated channels. Ian spent years meticulously gathering evidence, uncovering extensive fraud networks involving over 350 companies. Despite his exhaustive efforts, his pleas fell on deaf ears. The stress and hopelessness took such a toll that Ian ultimately lost his will to live. His tragedy highlights how financial crime doesn’t merely empty wallets—it destroys lives.

Ian’s story is heartbreaking, yet tragically common. Thousands face similar battles every year, often feeling abandoned by the very systems that are supposed to protect them.

Is Regulation Really the Problem?

The government’s narrative suggests that regulation has stifled economic growth by imposing unnecessary complexity and costs. But let’s challenge this assumption directly. Regulation isn’t strangling innovation; it’s protecting consumers from exploitation. The complexity that businesses complain about pales in comparison to the catastrophic consequences experienced by victims of financial crime.

Currently, only 7% of all scams are reported—partly because victims feel there’s no meaningful recourse. With such dismal prosecution rates, the message is clear: financial crime pays, and it pays well. Cutting back regulation under these conditions sends precisely the wrong signal, emboldening criminals while leaving citizens more vulnerable than ever.

A Better Way Forward

What if, instead of fuelling an environment that rewards exploitation, we redirected a fraction of existing regulatory funding towards genuine victim support? Imagine the transformative potential if just 1% of the Financial Conduct Authority’s budget—approximately ￡7.5 million annually—was dedicated to holistic recovery programmes.

These programmes wouldn’t simply address financial losses. They’d rebuild lives by nurturing emotional resilience, restoring confidence, and providing critical education to empower individuals. Holistic human capital development could genuinely put money—and security—back into the pockets of working people, creating sustainable, meaningful growth that benefits society at large.

This isn’t a radical idea—it’s common sense. Supporting victims not only heals lives; it strengthens communities and economies.

Demanding Accountability and True Progress

We cannot let our leaders hide behind misleading economic arguments while real people continue to suffer. Financial crime is a global epidemic, and deregulation is not the cure; it’s the accelerant.

Instead of emptying the pockets of everyday citizens to line those of the financial elite, our government must commit to genuine accountability, transparency, and robust protections against financial crime. Economic growth achieved by exposing the most vulnerable is neither sustainable nor moral.

It’s time to demand better. Real economic progress protects and empowers everyone—not just those already at the top.

What will you choose? A future that safeguards your financial wellbeing, or one that leaves you exposed?