Over the past five years, fraudsters have stolen more than £100 million in numerous NHS scams. Exploiting weaknesses in IT systems, these criminals committed crimes ranging from credit card theft to sophisticated email hacks.
The Cost of Fraud to the NHS
The financial impact of these NHS scams is staggering. The equivalent of more than 2,000 senior nurses’ annual salaries or over 20,000 rounds of radiotherapy has been lost. Such inexcusable losses come at a time when the NHS is already struggling to meet increasing demands.
Between 2018 and 2023, the total cost of fraud to the NHS in England reached £101 million. This figure includes funds stolen directly from NHS trusts and organisations, often through schemes that exploit lapses in security and oversight.
Multiple Trusts Targeted
Fraudsters have targeted individual NHS trusts with alarming precision. For example:
- University Hospitals Bristol and Weston NHS Foundation Trust lost £30,615 in a bank mandate scam in 2020. Fraudsters intercepted emails and impersonated suppliers, convincing staff to transfer funds into fraudulent accounts.
- Hampshire Hospitals NHS Foundation Trust fell victim to credit card fraud in 2021/22, losing over £10,000. Stolen credit card details were used for online purchases. Still, efforts to recover the money failed as the perpetrators operated outside the UK.
- James Paget University Hospitals NHS Foundation Trust was defrauded of £21,512 when hackers intercepted emails and altered bank details on invoices. Although £19,000 was eventually recovered, the remaining funds were lost.
Why Fraudsters Target the NHS
Fraudsters view the NHS as an attractive target due to its scale and complexity. With an annual expenditure of £181.7 billion, the NHS provides ample opportunities for criminals to exploit. From payment diversion fraud to cyberattacks, these crimes often involve intricate schemes that are difficult to detect.
One common scam involves impersonating legitimate suppliers to redirect payments. In one instance, the NHS Cheshire and Merseyside Integrated Care Board lost £9,835 after a supplier’s email account was compromised. Fraudsters reset the payment system’s password and altered bank details, resulting in unrecoverable losses.
The Role of Fraud Prevention
Fraud prevention is critical to safeguarding NHS resources. The NHS Counter Fraud Authority (NHSCFA) works tirelessly to raise fraud awareness and implement protective measures. Their efforts include:
- Raising Awareness: National campaigns highlight common scams and educate staff on recognising fraudulent activities.
- Preventative Actions: In 2022/23, the NHSCFA prevented £33 million in attempted fraud, including stopping a £14 million payment diversion scam.
- Collaboration: The NHSCFA collaborates with the banking sector and other partners to detect, prevent, and recover funds lost to fraud.
Despite these efforts, fraudsters continue to find new ways to exploit the system. NHS organisations must adopt robust counter-fraud measures to protect themselves.
The Human Cost
NHS scams aren’t just a financial issue; they’re a crime with real consequences. The stolen funds should have supported patient care, funded life-saving treatments, or paid for vital equipment. As Dr Tony O’Sullivan, co-chair of Keep Our NHS Public, stated, “Fraud is not a victimless crime. The NHS must be better protected.”
The impact of these crimes extends beyond finances. They erode trust in the healthcare system and divert resources from essential services. Every pound lost to fraud represents a missed opportunity to support patients and staff.
Strengthening NHS Defences
To combat these challenges, the NHS must prioritise fraud prevention at every level. Key actions include:
- Enhancing IT Security: Strengthening systems to prevent hacks and unauthorised access.
- Implementing Two-Factor Authentication: Ensuring that sensitive transactions require multiple layers of verification.
- Regular Training: Educating staff on recognising scams and reporting suspicious activity.
- Routine Audits: Conducting regular checks to identify potential vulnerabilities and address them promptly.
These measures actively reduce the risk of fraud and ensure that NHS funds serve their intended purpose.
A Call to Action
Fraud awareness is essential for stopping NHS scams. Staff, suppliers, and the public all have a role to play in identifying and preventing scams. By staying vigilant and reporting suspicious activities, we can help safeguard the healthcare system. The NHSCFA’s coordinated response has already achieved significant results, but the fight against fraud is far from over. Protecting the NHS requires ongoing effort and investment in fraud prevention strategies.
The £101 million lost to fraud over five years underscores the urgent need for action. Fraudsters targeting the NHS drain resources and undermine trust in the healthcare system. By prioritising fraud awareness and prevention, the NHS can better protect itself from future attacks. Every individual and organisation must collaborate to preserve these essential funds for patient care and services.
