Headline: UK Citizens Lost £1.2bn to Fraud in 2022: A Breakdown of the Most Common Scams and Future Threats

Image caption: A representation of financial fraud

UK Finance Report on Fraudulent Activities

According to UK Finance, British residents suffered an estimated £1.2bn in fraudulent activities in 2022, which equals approximately £2,300 per minute. Although this reflects an 8% decrease in financial losses when compared to the previous year, it resulted in nearly three million incidents throughout the UK.

Common Types of Fraud

• Payment card scams: The most common type of fraud, responsible for approximately 61% of all reported cases. Scammers often deceive individuals by making purchases using misappropriated card details.
• Romance fraud: An increase in romance fraud cases was reported in 2022, as scammers exploit individuals by forming romantic relationships with the intention of extracting funds.
• Investment fraud: The number of reported investment fraud cases decreased by a third due to economic pressures from the cost-of-living crisis. However, industry experts stress the continued threat of cybercriminals targeting consumers.

Liability for Fraudulent Transactions

While banks are legally liable for covering unauthorised fraud losses, they are not obliged to reimburse the costs of authorised scams or instances where individuals unknowingly consent to transferring funds. Approximately 59% of losses were voluntarily refunded by banks last year, equating to £285.6m.

Collaboration and Future Threats

UK Finance CEO David Postings cautions that criminal gangs, foreign entities, and even state-sponsored bad actors are behind the majority of fraud cases in the UK. Mr. Postings also acknowledges the emergence of artificial intelligence (AI) as a tool for creating increasingly convincing scams and recommends increased collaboration between industries and law enforcement agencies to mitigate the risks.

New Fraud Strategy and Prevention Measures

Recently, the government released a new fraud strategy in response to these threats, including measures that allow banks to delay payments for longer periods to investigate suspicious transactions and implement a total ban on cold calls promoting financial products.

Protecting Yourself from Fraud

Despite these efforts, UK citizens are urged to remain vigilant and protect their personal information and finances. For more information and resources on safeguarding your digital presence, consult the National Cyber Security Centre (NCSC) and Action Fraud, the national reporting centre for fraud and cybercrime in the United Kingdom.