As the ONS publishes its latest crime survey, showing 4.2m fraud incidents, and a 19% rise in bank and credit account fraud, RSM UK says the statistics illustrate the rising tide of fraud costs financial services firms are now facing.

Erin Sims, Fraud Risk Services Director, RSM UK said: “Today’s data shows fraud is the only major crime type on the rise, now accounting for almost half (44%) of all crime captured by the Crime Survey for England and Wales. A large proportion of these incidents involve bank and credit account fraud, which rose sharply by 19%. While much of this fraud is reimbursed to consumers, the cost of this ultimately lands with the financial institutions.

“Recent Home Office data shows that economic crime against businesses is also widespread, with one in four (27%) of UK firms reporting some form of fraud or cyber crime in the last 12 months. With policing resources stretched and criminals increasingly using sophisticated AI enabled tactics to defraud, the private sector is increasingly carrying the financial and operational burden of tackling fraud.

“Despite a target to reduce fraud by 10%, as cited in the previous Government Fraud Strategy, fraud clearly continues to increase. As the Government prepares to release its updated Fraud Strategy, this could present a critical opportunity to strengthen the UK’s response to fraud. Without stronger, practical measures on intelligence sharing and digital platform accountability, the costs of fraud will continue to fall disproportionately on firms.”

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