Warning UK losing £2,300 per minute to fraud

13.07.2023

The UK is facing a significant fraud problem, with people losing £2,300 per minute to scams, resulting in a total of £1.2 billion lost in 2022, according to UK Finance, a bank industry group. Despite a slight decrease in the number of fraud cases compared to the previous year, fraud remains the most common crime in the UK, with approximately three million cases reported. 

Payment card fraud was the most prevalent type of fraud, followed by scams involving purchases. Romance fraud increased, while investment fraud decreased due to economic pressures. UK Finance highlighted that banks are legally obliged to reimburse unauthorised fraud but not authorised scams, leaving victims responsible for the losses. Banks voluntarily refunded only 59% of the funds lost to authorised scams. UK Finance called on tech and telecoms companies to share the financial burden and play a greater role in reimbursing victims. 

The use of artificial intelligence (AI) by scammers is a growing concern, as it enables more sophisticated and convincing fraud schemes. The government's fraud strategy includes measures such as allowing banks to delay payments for investigation purposes and banning cold calls on all financial products to tackle scams at their source.

(Source: BBC News)