Bank fraud has cost British consumers approximately £610 million this year, despite falling levels since the pandemic ended. The level of bank fraud is a national security threat, and the government needs to help banks fight complex scams.
The Meteoric Rise of Fraud in the UK
In early 2022, bank fraud and other scams cost £610 million, while losses for credit/debit cards were £361 million. Losses to Authorised Push Payment (APP) fraud, which involves fraudsters duping victims into making payments via scam text messages, phone calls, emails, bogus websites, and social media posts, declined by 17% to just under £250 million.
APP fraud is still 30% higher than the level for the same period in 2020. Although it has fallen compared to 2021. Over half of all reported APP scams include the non-delivery of goods or services paid for online.
How Fraudsters Prey on Vulnerable Victims and Cost Millions
Romance fraud has increased by over 31% to £16.6 million due to lockdowns brought on by the pandemic. This is where fraudsters pressure victims to hand over money they claim is needed for medical bills and debts. This type of fraud is one of the least reported, as many victims feel ashamed or embarrassed.
Romance fraud is one of the most underreported types of fraud, targeting individuals looking for love and companionship online. The fraudsters behind these scams are often highly skilled at building trust and forging emotional connections with their victims. Fraudsters may use fake profiles and stolen pictures. They will often spend weeks or even months cultivating relationships with their targets.
Over 60% of Households Struggle to Put Food on the Table
Despite the sophistication of these scams, victims should not feel ashamed or embarrassed about falling for them. Fraudsters have honed their craft over many years, and will use a range of techniques to steal from their victims. They may send gifts, make promises about the future, and even use emotional blackmail to extract money from their targets.
Lloyds Bank found that as the cost of living crisis persists, 60% of households would struggle to buy food if they lost more than £500. This is an increase from just over 33% in the previous year.
How to Report Fraud and Protect Yourself Against Fraud in the UK
To protect yourself from falling victim to fraud, you must know how to report fraud and take preventative measures. If you are a victim of fraud, you should report it to Action Fraud, the UK’s national reporting centre for fraud and cybercrime. It can provide you with a crime reference number, which you can use to report the fraud to your bank and any other affected parties.
There are several ways to prevent fraud, including keeping your personal information secure, being cautious of suspicious phone calls, emails, or text messages, and keeping your computer and mobile phone up-to-date with the latest security software.
If you suspect you have been a victim of fraud, you should contact your bank immediately, as they may be able to stop any further fraudulent activity and reimburse you for any losses incurred.
The UK has seen a rise in most types of fraud in recent years, costing consumers and businesses billions of pounds. While bank fraud is decreasing, the government and banks must work together to fight increasingly complex fraud techniques. If you are a victim of fraud or want to protect yourself against it, reporting it to Action Fraud and taking preventative measures is essential.
