UK fraud is a crisis with no magic bullet

Fraud is a crime that continues to grow exponentially, ravaging both individuals and businesses alike. It undermines public trust and erodes the very fabric of our economy.

As a retired UK detective with over four decades experience of investigating fraud, I have seen the profound impact that this crime has on victims, especially the elderly and the vulnerable. It is the crime most commonly perpetrated against members of the public. 

Fraud is spiralling out of control in the UK and the response, particularly from law enforcement and government, is woefully inadequate. In 2024, UK Finance reported a staggering £1.17 billion ($1.6 billion) in fraud losses, a direct result of criminals exploiting vulnerabilities in the financial system. This figure represents a 14% increase in cases of unauthorised fraud, with over 3.13 million reported instances. 

Despite these figures, police forces have continued to pay lip service to the problem, emboldened by the attitude of successive governments. Fraud is not a key performance indicator for most forces, therefore fraud investigations are typically viewed as a secondary concern, which do not generate the same headlines or political fallout as traditional crimes. 

This is not an issue with the frontline officers. They can only do what they are ordered to do, so the blame lies with the senior officers, who (in my view) are totally ignorant of the suffering fraud inflicts on the public. Other than giving you a crime number, there Is often little to no investigation in many fraud cases and there seems no political will to do more.

Action Fraud, the national reporting centre for fraud and cybercrime, is a joke. I should know, as I was part of the initial setup and the liaison officer for my force. Action Fraud was a well-intentioned initiative, but rapidly fell into disrepute when senior officers perceived it to be a get-out-of-jail-free-card, a place where fraud went to “disappear”.

Ironically, cybercrime is a policing priority, and yes, cybercrime often has a fraud element. But it is not the catchall for a crime that has literally hundreds of different variants. Action Fraud’s website has a page dedicated to fraud types, listed A to Z, which makes any attempt at lumping them all under cybercrime both idiotic and pointless.

As a result, many forces have disbanded specialist fraud squads. The absence of specialist fraud investigators means fewer resources are allocated to tackling fraud, and the effectiveness of investigations is increasingly diluted. We simply must recognise that experienced, Home Office-trained detectives, have a role to play in taking the lead in the battle against complex fraud.

As Ben Donaldson, Managing Director of Economic Crime at UK Finance, rightly points out: “Fraud continues to blight this country… this causes severe harm to individuals, society, and our economy as the stolen money goes to serious organised crime groups, both here and abroad.”

Government response has been equally appalling, with limited funding allocated to combatting fraud and economic crime. While UK Finance has urged the government to invest more in fighting fraud, the current administration, like its predecessors, has failed to implement a cohesive, long-term strategy for tackling this escalating problem.

It’s time we faced the reality that there is no magic bullet when it comes to solving the fraud epidemic. The only way forward is through strategic investment in specialist and well-trained police officers. These officers must have the expertise, knowledge, and experience to investigate complex fraud cases, and they must be adequately supported by the necessary resources, including digital specialists to support them.

And the truth is, of course, that fraud investigations are complex. They require a detailed understanding of financial systems, digital forensics, and international criminal networks. 

As Gadi Mazor, CEO of BioCatch, has said, fraud is a “systemic problem”, and the need for collaboration between financial institutions, law enforcement, and regulators has never been more urgent. Mazor’s sentiment echoes the frustrations of many in the industry, who are baffled by the inertia within the police and government sectors in the face of mounting evidence of the fraud crisis.

Fraud is now part of an economic crisis. It is not just an isolated crime affecting a few individuals: it is a systemic issue that harms the economy as a whole. The stolen money is often funnelled into organised crime, which funds further criminal activity, exacerbating the problem. 

The question thus remains: how can we address fraud effectively if law enforcement is not equipped with the necessary tools or personnel to investigate complex financial crimes? The first step would be to make fraud a performance indicator for the police. Once we have that, it will force the hands of the Chief Constables and their political overseers to react. 

Chief Constables are more politician than police officer these days, overseen by politicians such as the (elected) Police Crime Commissioners. Put them all in the spotlight by measuring their performance where fraud is concerned … and watch them squirm. 

At least then we may see meaningful responses to the problem.