Fraud now constitutes 40% of UK crime, soaring identity theft fuel surge

Shocking new data reveals that fraud now accounts for a staggering 40% of all crime in England and Wales, with experts identifying card identity theft as the fastest-growing threat.

A recent analysis by Investing in the Web highlights a dramatic 53% surge in card identity theft losses in the UK within a single year, escalating from £51.7 million in 2022 to an alarming £79.1 million in 2023.

The number of reported incidents of card identity theft has also witnessed a significant jump, rising from 82,064 to 142,442 over the same period. This surge positions identity theft as the most rapidly expanding fraud category in the UK, experiencing a 74% increase in reported incidents compared to the previous year.

The study, which scrutinized recent fraud data from major UK banks and payment providers, also uncovered a concerning rise in mobile banking fraud. Monetary losses in this area climbed by 33% to £45.5 million between 2022 and 2023, while the number of incidents surged by 62%.

Purchase scams remain a prevalent type of fraud by volume, with over 156,000 incidents reported last year, marking a 34% increase from 2022. Telephone banking scams have also seen an uptick, increasing by 19% with reported losses reaching £17.6 million in 2023.

Romance scams continue to inflict substantial financial and emotional damage, with losses increasing by 17% to £36.5 million in 2023. These scams often involve elaborate schemes where criminals cultivate emotional relationships with victims before soliciting money for fabricated emergencies or investment opportunities.

Despite a 9% decrease from 2022, card-not-present fraud, which includes online shopping transactions, still represents a significant financial burden, valued at £360.5 million in 2023.

Pedro Braz, CEO of Investing in the Web, commented on the disturbing trends: “Card identity theft has reached unprecedented levels this year, with criminals adapting their techniques faster than many banks can update their security systems.” He further noted the effectiveness of purchase scams in exploiting consumer trust and the devastating impact of romance fraud, where victims often suffer in silence.

Braz emphasized that while security measures are improving in some areas, “the overall threat remains substantial as criminals constantly adapt. Fraud poses a threat to economic security and is increasingly linked to organised crime groups.” He concluded by stressing the importance of vigilance and scepticism towards unsolicited communications as the best defence against these evolving threats.

The most prevalent fraud categories in the UK, 2022 to 2023