UK urged to lead fightback against the global ‘fraudemic’
Fraud has become a global phenomenon and needs collective action, according to a report.
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Your support makes all the difference.Global joined-up action is needed to tackle the scourge of fraud, a report is urging, with nearly one in five UK adults having fallen victim in the past three years alone.
Nearly a fifth (18%) of UK adults are estimated to have fallen victim to fraud between 2021 and 2023, according to a report.
The average loss was put at £907, with a third (33%) of victims reporting suffering a negative emotional impact and 18% an impact to their finances.
Two-fifths (41%) of UK fraud victims said they had become less trusting of others.
The research was published by think-tank the Social Market Foundation (SMF) in partnership with Santander UK.
The Fraudster’s World Report spanned 15 countries in total, with 21% of the 28,000 people across the survey having experienced fraud.
The report emphasised the global nature of fraud and the SMF said a comprehensive international agreement is needed to help tackle it.
Scams often originate online and criminals are often based in a different country to the person being scammed.
The SMF also said there should be an alignment in interests among private sector organisations that make up the “fraud chain”, including introducing legal duties on organisations to ensure that they prioritise fraud prevention and bear relevant costs.
More than 2,000 people in the UK were surveyed for the research, alongside surveys in Argentina, Australia, Brazil, Canada, France, Germany, Italy, Japan, Mexico, New Zealand, Portugal, Singapore, Spain and the United States. Surveys were carried out between January and March 2024.
As a proportion of the population, people in the US were the most likely to report being victims of fraud, with nearly a third (31%) of adults having done so.
Despite the best efforts of banks and policymakers, the criminal gangs who sit behind fraud are enriching themselves to the tune of billions and costing the global economy hundreds of billions
Japan saw the lowest level of fraud, with 8% of adults having experienced fraud between 2021 and 2023.
The average fraud loss was highest in Singapore (£2,113) and lowest in Brazil (£282), among those surveyed.
The report was released ahead of new mandatory reimbursement rules that will come into force from October 7.
Under the new rules overseen by the Payment Systems Regulator (PSR), banks will be required to reimburse customers who are victims of bank transfer scams unless the customer has been grossly negligent, with a maximum reimbursement value of £85,000.
Stephen White, chief operating officer at Santander UK, said: “The report puts to paper the sheer scale of the ‘fraudemic’ that we’re seeing.
“Despite the best efforts of banks and policymakers, the criminal gangs who sit behind fraud are enriching themselves to the tune of billions and costing the global economy hundreds of billions. Fraud has become a global phenomenon, as such it needs global, collective action.
“The UK is in a prime position to lead this charge, but we need renewed focus on tackling the fraudemic across Government, banks, and the global technology and communication companies that connect criminals with potential victims.”
Richard Hyde, a senior researcher at the SMF said: “It is not just the UK that is besieged by fraudsters – both developed and developing countries face huge fraud challenges.
“Any nation acting alone remains ill-equipped to deal with today’s fraudsters, who can operate from anywhere and claim a victim thousands of miles away.
“To tackle the challenge, governments across the world need to co-ordinate and put in place strong counter-fraud measures at home; this will create the best platform from which the world can deal with cross-border fraud.
“We believe that the UK can and should facilitate and lead that global movement.”
Rocio Concha, director of policy and advocacy at consumer group Which?, said fraud must be treated “as a national priority”, adding that a more co-ordinated approach is needed, “by encouraging sectors to share data and stop scams spreading”.