Amount of fraud in UK more than doubled to £2.3bn in 2023, report finds

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, according to a report that also warns of the future impact of fraudsters using artificial intelligence to rip off consumers.

The accounting firm BDO’s latest FraudTrack report found that the number of reported cases rose by 18% to a three-year high, and the number of high-value cases over £50m increased by 60% year-on-year in 2023. Half of the high-value frauds were over £200m.

BDO said factors behind the overall rise included the growing popularity of online scams, phishing and system breaches, as well as authorised push payment (APP) transactions, where fraudsters trick people into transferring money to them.

“Analysis of the data over the last decade shows the number of reported cases of fraud is rising and the amounts involved are getting bigger,” said Kaley Crossthwaite, a partner at BDO. “And we believe that it is likely to continue to do so. The sad reality is that the fraudsters will be looking to stay one step ahead by exploiting new options like AI.”

UK banks have warned of “an epidemic of scams”. Barclays said last year that more than 70% of scams were happening on social media, online marketplaces and dating apps.

London and the south-east of England remained the biggest fraud hotspot, with a 170% year-on-year increase in value as a result of several high-profile cases, and a 43% increase in reported cases.

Major cases last year included Entain, the owner of the Ladbrokes and Coral betting chains, reaching a £585m settlement with HM Revenue and Customs, the UK’s tax authority, over alleged bribery at a business it owned in Turkey.

The former Formula One boss Bernie Ecclestone also pleaded guilty to fraud after being accused of failing to declare more than £400m of overseas assets to the UK government. He agreed to pay HMRC £652m.

The region with the second-highest level of reported fraud was the east Midlands, which jumped from 12th place in 2022.

BDO said the true overall level of fraud was likely to be significantly higher than £2.3bn because statistics from the Crime Survey for England and Wales had revealed that fewer than one in seven offences are reported to the police.

A report last year found that the number of people committing “harmless” fraud, such as cheating on their council tax or trying to reclaim money on lost gambling bets, had soared amid the cost of living crisis.