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UK has become the global hub for fraud due to an explosion of cybercrime

By Puja Sharma

June 29, 2022

  • bank frauds
  • banks in UK
  • Credit Card Fraud
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Fraud

The UK has become the global capital of fraud, with losses rocketing to almost £3b a year, a Daily Mail investigation revealed. The losses per person in the UK are far higher than in other leading Western economies, including the United States, Canada and Australia.

There were 383,132 fraud reports in the UK between April 30 last year and May 1 this year, resulting in losses of £2.9b, according to the National Fraud Intelligence Bureau. Campaigners also warned of a ‘silent epidemic’ of elderly victims who are too scared to report being defrauded.

And the situation is getting worse as criminals exploit the cost of a living squeeze to find new ways to con the elderly and vulnerable. This horrific new ‘wave’ of scams led to fraudsters stealing £700m in April, compared with an average of £200m a month over the previous year.

Martin Cheek, managing director at SmartSearch, said: “We support Finance UK’s call for cross-sector action to tackle online scammers. Behind these miserable crimes, which often exploit the most vulnerable, are criminals who have been able to able to hide their identities and move stolen money.”

“As scammers use ever-more sophisticated ways to steal and launder cash, these findings are yet another indication that robust electronic verification checks are the quickest and most effective way for the organisations these criminals exploit to manage their risks and – most importantly – to protect their customers,” he added.

This publication also demanded a police investigation and tackling fraud a priority and boosting the number of specialist investigators. The reimbursement of fraud victims by banks must be made mandatory, alongside stronger protection for vulnerable customers.

And tech giants should have to compensate fraud victims caught out by scams on their platforms – and face fines if they fail to crack down on the swindlers.

‘‘Fraud affects almost one in ten adults in Britain. It’s the biggest crime and the fastest-growing crime. It’s about time the Government took serious action against it.’’ Labour MP Dame Margaret Hodge, chairman of the all-party parliamentary group on anti-corruption noted.

“Since the beginning of the pandemic, the number of people being targeted by cybercriminals has increased exponentially. They have exploited the weakest link in the security chain – people – by taking advantage of fears and anxieties, currently inflation and the cost-of-living crisis.” Gadi Mazor, CEO, BioCatch said.

Each year, more sophisticated schemes emerge, from push payment fraud (APP) and smishing to screen sharing and voice fraud. Because of their complexity and constant evolution, it’s invariable that people will make the mistake of letting these criminals into their system. However, emerging technology now helps to prevent this crime at its origin.

Behavioural Biometrics examines how people interact with devices and apps, providing insights into digital experiences, such as detecting unusual behaviour that deviates from historical patterns. For example, instead of utilising the scroll bar, a user now navigates with the mouse wheel.

“This level of real-time visibility provides the key to tackling cyber criminals and can help to address Britain’s growing fraud problem,” Mazor added.

Key highlights

  • The UK has by far the highest level of credit and debit card fraud in Europe.
  • Just one in seven frauds are reported to the police or Action Fraud, according to the Office for National Statistics;
  • A vast number of cases go undetected, leading experts to estimate the real annual cost to the economy at a shocking £137b;
  • Despite fraud being the most common crime in the country, only 2 per cent of police officers in England and Wales were dedicated to investigating it last year;
  • Only one in 1,000 reports of fraud resulted in a charge in 2021;
  • More than 40 million adults in the UK – nearly three in four – have already been targeted by a scammer this year.

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