Fraudulent Activities Rock UK Banking Sector: £1.2BN Lost to Scams in 2022

Staggering Figures Revealed by UK Finance

According to industry group UK Finance, a staggering £1.2 billion was lost to fraud in the United Kingdom last year. This translates to victims being defrauded of a staggering £2,300 every minute.

Three Million Scams in 2022: A Four Percent Drop in Fraud Cases

While it may seem alarming, the number of scams decreased by eight percent from 2021 and four percent in fraud cases compared to the previous year. This indicates that efforts are being made to combat fraudulent activities.

Types of Frauds

Purchase Scams

Romance Fraud: An Increase Last Year

Investment Fraud: A Third Decrease due to Cost-of-Living Pressures

Who is Behind the Majority of Frauds?

According to UK Finance boss David Postings, criminal groups, including drugs gangs and “state-sponsored bad actors”, are responsible for the majority of fraud.

Banks’ Refund Policy

While banks are legally obligated to refund unauthorized fraud losses, they do not have to cover authorized scam costs. As a result, only 59 percent of such losses are reimbursed voluntarily by banks.

Calls for Action

Tech and Telecoms Companies Should Play a Greater Role

UK Finance boss David Postings urged tech and telecoms companies to take greater responsibility in covering lost funds, as many common frauds start online.

Industry Group Tech UK’s Response

Industry group Tech UK countered that technology firms already take “a wide range of active measures” to prevent fraud.

Government’s New Fraud Strategy

The government has recently released a new fraud strategy, which includes plans to:

Delay Payment Processing for longer to allow for suspect payments to be investigated
Ban Cold Calls on All Financial Products to help stop scams at source
Get Tougher on Scammers as part of the national strategy

The government is committed to getting tougher on scammers and reducing the impact of fraudulent activities in the UK.