Feeds

UK fraud losses soar to over £38bn

Public sector cops the lion's share of fraudulent scams

Choosing a cloud hosting partner with confidence

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." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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.
10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.