The report says the value of fraud committed in the UK will more than double to £2.3bn in 2023, making it the second richest year in 20 years. The report also warns of the future impact of fraudsters using artificial intelligence. deceive consumers.
According to accountancy firm BDO’s latest FraudTrack report, the number of reported incidents has increased by 18% to a three-year high, while the number of high value incidents exceeding £50 million has increased by 60% compared to the previous year. 2023. Half of high-value frauds are over £200m.
According to BDO, factors contributing to the overall increase include online fraud, phishing, system breaches, and the growing popularity of authorized push payment (APP) transactions, where fraudsters trick people into sending money.
Kayleigh Crosthwaite, partner at BDO, said: “Analysis of data over the past decade shows that the number of reported fraud cases and the amount of money involved has increased.” . “And we believe that trend is likely to continue. The sad reality is that fraudsters are exploiting new options like AI to stay one step ahead.”
British banks have warned of an “epidemic of fraud”. Barclays said last year that more than 70% of fraud takes place on social media, online marketplaces and dating apps.
London and the South East of England remain the biggest fraud hotspots, with values up 170% year-on-year and the number of reported cases up 43%, driven by several high-profile incidents.
Key cases last year included Entain, owner of gambling chain Ladbrokes & Coral, settling £585m with UK tax authority HM Revenue and Customs over bribery charges at a company it owns in Turkey. This includes reaching .
Former F1 manager Bernie Ecclestone has also pleaded guilty to fraud after being accused of failing to declare more than £400m of overseas assets to the British government. He agreed to pay HMRC £652m.
The region with the second highest level of reported fraud was the East Midlands, jumping from 12th place in 2022.
BDO says statistics from the Crime Survey of England and Wales reveal that fewer than one in seven crimes are reported to the police, so the actual overall level of fraud is significantly less than £2.3 billion. He said there is a high possibility that it will exceed that amount.
Last year’s report found a surge in the number of people committing “harmless” fraud, such as cheating on council tax or trying to recover lost gambling bets, amid the cost of living crisis.
