In this article, we’ll examine how big of a problem fraud is in Great Britain, and the reasons why this is the case…
Great Britain is known for many things, including its royal family, incredible history and beautiful countryside.Unfortunately, it’s also becoming increasingly known as the fraud capital of the world with record numbers of POCA civil recovery proceedings, which seek to freeze property if there is suspicion that it was obtained by unlawful means.
In 2021, it was reported that fraud in the UK had risen to a level where it was a ‘national security threat’, according to UK Finance. In this article, we’ll take a look at the state of fraud in Great Britain, the reasons behind it and what’s being done about it.
Is Britain the Fraud Capital of the World?
Unfortunately, the short answer to that is yes. Figures show that losses due to fraud in the United Kingdom total a staggering £3 billion a year – much higher than other countries such as the United States which have a much higher population than Great Britain. In April 2022 alone, fraudsters stole approximately £700 million, a concerning rise from £200 million in 2021.
Below we’ll take a look at some of the types of fraud committed in the UK…
Investment Fraud
With so many people desperate to make the most of what savings they’ve managed to put together, lots of these people sign up to investment schemes without properly researching them. Investment fraud is rife in the United Kingdom, with scammers happily conning people out of their life savings without a moment’s thought.
Loan Sharks
This kind of fraudster preys on those who are struggling to make ends meet by offering a loan as long as the person pays an up-front fee for using their services. This type of scam has increased by 90% in 2022, with the average victim losing around £231.
Social Media Scams
Social media helps people to keep in touch cheaply and easilybut it can also be a really useful tool for scammers. Social media scams have recently been highlighted on UK news channels and, one example of this is a WhatsApp scamwhereby a 66 year old mother was conned out of £10,000 after receiving a message from her son claiming that he was in trouble.
Mrs Briscoe received messages from her son, who was traveling in Mexico, asking her to make payments which he had forgotten to make. Fearing that her son would get into legal difficulty, Mrs Briscoe made the payments which unfortunately, went straight to the scammer.
Why Is Fraud Such a Problem in Britain?
To begin with, Great Britain has a reputation for being ‘soft’ when it comes to fraud cases and, in fact, even in 2022, this remains the case. Figures show that, in 2021, out of 1000 fraud reports, one case actually resulted in the fraudster being charged.
David Gomez of ICAEW said, “Fraud, both civil and criminal, is a complex legal area and such allegations are often difficult to prove. In the criminal sphere, there are overlapping investigating and prosecuting bodies, which have different levels of expertise, resourcing and competing priorities. It’s crucial that the UK addresses the issue of resourcing for law enforcement.”
Technology has also made life considerably easier for scammers due to its wider reach. Through digital means, fraudsters are able to target people in the UK from overseas, meaning that they are able to get hold of other people’s cash,but authorities are unable to get hold of them as it can be extremely complicated to try to bring somebody to justice from overseas. Scams online are also constantly evolving and some of them recently look fairly realistic and so they can therefore be hard to spot to the untrained eye.
What is Being Done About Fraud in Britain?
Financial organisations and government officials alike are working hard to tackle the growing problem of fraud in the UK, particularly at the moment when the cost-of-living crisis is driving these issues to new heights.
A spokesperson for The UK banking trade body, UK Finance, said, “The banking and finance industry is committed to stopping fraud and has invested billions in advanced technology to protect customers, alongside working closely with the Government and law enforcement to target the criminal gangs responsible”.
While that’s good to hear, many people will be keen to explore the part about ‘working closely with the Government’. In 2021, Home Secretary, Priti Patel, announced three new fraud charters covering retail banking, telecommunications and accountancy. These charters state that government leaders and industry leaders are to work together to create new and innovative ways of reducing fraud and protecting the finances of the British public.
This is, without a doubt, good news for those who were disillusioned by comments by Kwasi Kwarteng, Secretary of State for Business, Energy and Industrial Strategy. MrKwarteng is said to have stated that fraud is “not a crime that people experience in their day-to-day lives”. Needless to say, this is not a comment which was well received by those who had, in fact, been a victim of crime – some 40 million adults per year.
Great Britain is a great place to live – and this may in fact be part of the problem. The UK has always attracted people from overseas and this, unfortunately, includes some people whose intentions are less than honest.
Always check before sending money or personal details to anybody and if you think you have been a victim of fraud, you should collate as much evidence as possible and contact a solicitor immediately.
