Warning UK losing £2,300 per minute to fraud

23.05.2023

People in the UK lost £1.2 billion to fraud in 2022, equivalent to £2,300 every minute. Fraud is now the most common crime in the UK, with one in 15 people falling victim.

1. Types of Fraud: Fraud cases involving payment cards were the most common, followed by scams involving purchases. Romance fraud, where scammers pretend to be romantically interested in victims to extort money, increased in 2022. However, investment fraud fell due to cost-of-living pressures.
2. Reimbursement of Losses: UK Finance stated that losses from authorized scams, where victims are tricked into sending money to fraudsters, were not always reimbursed. Banks voluntarily refunded about 59% of the losses, amounting to £285.6 million out of the £485.2 million stolen.
3. Responsibility of Tech Firms: UK Finance urged tech and telecoms companies to share the burden of covering fraud-related costs. They called for a greater role from these companies in reimbursing lost funds.
4. Future Threats: UK Finance expressed concerns about the use of artificial intelligence (AI) by scammers, enabling more sophisticated and convincing scams. They highlighted the potential for AI to automate fraud and "spoof" people.
5. Government Action: The UK government released a new fraud strategy that includes measures such as allowing banks to delay payments for investigation purposes and banning cold calls on all financial products to help prevent scams at their source.

The article highlights the significant financial losses due to fraud in the UK, the different types of fraud prevalent, challenges in reimbursement, and the need for collaborative efforts between banks, tech firms, and the government to combat fraud effectively.

(Source: BBC News)