UK Fraud Total Higher Than Predicted
Insurance scams, online theft, tax fraud and evasion are costing the UK as much as ?30bn every single year, according to the latest official figures.
The National Fraud authority believes that the figures work out at costing around ?621 per adult in the UK. This is the first time such figures have ever been properly worked out on a national scale.
Over half (58%) of all fraud was carried out in the public sector, costing around ?17bn a year. The NFA believe these losses were paid for through the rising costs of products and services and through tax fraud.
Loses from tax fraud account for the highest overall loss at ?15.2 billion, while in the private sector the financial services industry were the biggest hit with a total of ?4.8bn in fraud ? something that the Financial Services Authority is taking very seriously, leading to an increase in the amount of brokers been fined and banned from the industry due to fraud.
It was also noted that consumers lose ?3.5bn in targeted fraud every single year, such as lottery and loan scams. 12% of all fraud victims were individual consumers.
Previous fraud estimates have always been much lower than the figures we?ve seen this week, normally floating around the ?13bn mark.
NFA Chief Executive, Bernard Herdan explained the differences in figures between this study and ones conducted previously:
?Although the figure appears on the face of it far greater than the previous estimate, we know this is because we have included many additional figures that other studies have not,
With this vital information, we can develop clearer priorities to prevent, detect and deter fraudsters. We will use the data to help identify those areas of fraud that cause the most harm to the UK economy.?
As consumers its worthwhile taking time over any deals as well as making sure relevant contact information is available before purchasing, including a full postal addresses and landline telephone number. Using a credit card on any purchase over ?100 will also provide additional protection for online purchases.