Feeds

UK fraud losses soar to over £38bn

Public sector cops the lion's share of fraudulent scams

Top 5 reasons to deploy VMware with Tegile

Fraud cost the UK economy more than £38bn over the last 12 months, according to the latest annual statistics from the UK's National Fraud Authority.

The figures represent an increase of nearly £8bn (or more than 25 per cent) for the losses recorded by the same Annual Fraud Indicator last year. Fraud in the public sector (£21.2bn) made up the biggest slice of the pie, with scams in the private sector costing £12bn and £4bn in losses coming in the form of fraud against individuals.

The NFA reckons the increase is explained, at least in part, by improved reporting procedures. For example, the figures include estimates for procurement (£2.4bn) and grant fraud (£515m) for the first time.

The financial services industry recorded £3.6bn in fraudulent losses last year, the highest figure in the private sector, a slight decrease in the £3.8bn recorded in 2009. Reduction in losses attributed to plastic card (£440m) and cheque fraud (£30m) were partly offset by a 14 per cent increase in online banking fraud, which swelled to £60m.

Mortgage fraud (£1bn) and insurance fraud (£2.1bn) both remain high.

Gavin Cunningham, a former officer in the Serious Fraud Office and now director in the specialist forensic fraud investigation firm, BTG Global Risk Partners, said that fraudulent losses in future are only likely to rise.

"These figures make grim reading for both private and public sector business leaders alike and reflect the significant financial impact of fraud in the UK," Cunningham said. "With the UK still struggling to recover from the recession and some uncertainty as to what the future may hold, there is unlikely to be a reduction in fraud in the short term; historically, there is evidence that fraud increases as a recession ends, in part because businesses uncover fraudulent actions as the effects start to build up and in part because there is more scrutiny of hidden and unknown costs in tougher times." ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.