Research, Survey and Statistics

The scale, sophistication, and impact of corporate fraud have reached unprecedented levels worldwide.

Interpol’s 2024 Global Financial Fraud Assessment reports that “financial fraud has increased and diversified significantly [and] represents a pervasive, global threat.” Even more sobering is the expectation that the “magnitude of financial fraud [will] grow in tandem with technological advancements and the expansion of virtual services across the globe.” With Nasdaq estimating that at least $3.1 trillion in illicit funds flowed through the global financial system in 2023, even the most diligent organizations find themselves impacted.

Fraud cases have surged by 15 per cent year-on-year for the first half of 2024, setting a record amount over the first six months of the year, the annual Northern Ireland Fraud Forum’s Conference was told today at Hilton Hotel Belfast.

Held to mark International Fraud Awareness Week, the conference featured a keynote speech from Minister of Justice Naomi Long MLA and put the fight against fraud at centre-stage under the theme: Fraud 2.0 – Fighting the curse of fraud and cyber-enabled crime to safeguard our future.

The Office of National Statistics (ONS) has reported there were approximately 3.6 million consumer and retail fraud incidents in 2024, a 19% rise for the same period in 2023.

Of these incidents, roughly 2.7 million involved a loss of money or property, where 1.9 million of those were fully reimbursed.

The incidents rose from 3.3 million in 2023. The ONS states this does not represent a statistically significant change, however, the rate of consumer and retail fraud was notable.

Losses from unauthorised fraud increased in the first half of this year, while losses where people were tricked into transferring money fell, according to banking industry body UK Finance.

In total, criminals stole £571.7 million through unauthorised and authorised fraud in the first half of 2024, a 1.5% decrease compared with the first half of 2023.

The government has been urged to lead a “cross-border war” against fraudsters to help tackle a problem which is costing the UK economy tens of billions.

In a new report, the Social Market Foundation (SMF) estimated that 21 per cent of adults globally have been victims of fraud in the last three years.

In that period £168bn fell into the hands of fraudsters, the survey showed. Including the wider social costs, the SMF estimated that fraud was costing the global economy £420bn.

Total volume of alleged fraud cases over £100k in the first half of the year reached 122.

Compared to the same period in 2023, the total value of fraud was down 14%.

New figures published today from KPMG UK’s mid-year Fraud Barometer show that money laundering has been the most common fraud type by value in the last six months. Nine cases have been heard in UK Crown Courts collectively worth £128.2 million so far this year. With the UK regularly cited as a hub for illicit finance, it is positive that more suspected perpetrators of this crime are appearing to be prosecuted.

The research, which records alleged fraud cases with a value of £100k and above heard in UK Crown Courts, has revealed 122 fraud cases in total were heard in the first six months of the year. This is up from 105 cases during the same period in 2023. By contrast, fraud value was just over £305 million, a 14% drop compared to the first six months of the previous year, when the total fraud value stood at £354.2 million.

Despite a decrease in the amount stolen through fraud in the UK in the past few years, continued vigilance is still needed to combat fraud across sectors, legal experts have said.

Recent statistics on fraud in the UK have shown some small reductions in the amount lost due to fraud, but there is still more to do by the financial sector and other sectors for fraud prevention and consumer protection. These are among the main findings of two industry reports.

Total loss caused by fraud in the UK shows downward trend (pinsentmasons.com)

Retail fraud in the UK rocketed 545% year-on-year in the first six months of 2024, costing UK retailers £5.4 million, according to new data from the National Fraud Intelligence Bureau (NFIB).

High on the list of recorded thefts are consumers returning stolen items to swap for legitimate ones or switching a price tag before paying, according to payments specialist Dojo.

Despite more businesses introducing paid returns, there have been over 1,300 reports of retail fraud so far this year, with May witnessing the highest number of reports of retail fraud with 285 cases followed by March (252).

Earlier this year, it was revealed that the amount of fraud committed in the UK more than doubled to £2.3bn in 2023, marking the second-biggest year for scams in the last two decades

The number of reported cases rose by 18 per cent to a three-year high, while the number of high-value cases over £50m increased by 60 per cent year-on-year in 2023.

Fraud accounts for 40 per cent of all reported crimes, new data has revealed, as Britons report that they are seeing an increase in scam activity.

Nearly £1.2billion was lost to fraud last year, according to figures from the National Crime Agency, with 3.5 million fraud offences having been committed in the year to March 2023.