Lloyds Banking Group is rolling out a new agentic artificial intelligence system across its fraud operations after preventing more than £1 billion of fraud in 2025 and investing £100 million in fraud technology since 2023, as the lender seeks to strengthen protection for its 28 million customers.

The bank said the new system deploys multiple AI agents simultaneously during customer interactions, enabling fraud teams to conduct identity checks, transaction analysis and scam risk assessments in real time. The technology has been integrated into existing fraud tools used by frontline staff and is designed to support faster decision-making while leaving final judgments with human colleagues.

According to Lloyds, the system was developed by teams spanning fraud, technology, data and risk functions using Envoy, the group's internal AI platform. The bank said colleagues can override AI recommendations and remain accountable for outcomes, reflecting its approach to responsible AI deployment.

Ron van Kemenade, group chief operating officer at Lloyds Banking Group, said: “AI is now integrated across our organisation and is transforming how we operate and serve customers. Our ongoing investment keeps Lloyds Banking Group ahead in responsible tech adoption within financial services.”

The lender is preparing to introduce a new Scam Check tool later this year across payment journeys at Lloyds, Halifax and Bank of Scotland. Customers making payments to new recipients for online purchases may be asked to answer questions and upload screenshots of products they intend to buy.

Lloyds said the tool will use machine learning and image analysis to identify potential scam indicators in marketplace listings and other online sales channels. Where risks are detected, customers will receive tailored warnings before completing a transaction.

The bank has introduced a Dark Horse logo within its banking app and payment processes to indicate when fraud prevention systems are actively monitoring transactions and scanning for threats.

Tom Martin, business platform lead for economic crime prevention at Lloyds Banking Group, said: “Fraud is increasingly fast-moving and complex, so our focus is on responsibly applying AI in a way that genuinely helps customers, without delaying prevention.”

The new fraud capabilities are supported by Envoy, which Lloyds said provides the infrastructure needed to develop, test and deploy AI systems while maintaining regulatory compliance, security controls and operational oversight. The platform is being used across a range of AI-driven applications, including fraud detection and customer service tools.

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