Fraud now makes up 40% of UK crime: Finance expert breaks down £1.2B in annual losses

The study, completed by Investing in the Web, analysed recent fraud data and found that identity theft now ranks as the fastest-growing fraud category across the UK, with a 74% increase in reported incidents compared to the previous year.

Data from major UK banks and payment providers shows that mobile banking fraud has also seen a surge, with monetary losses rising by 33% to £45.5 million and incident numbers jumping by 62% between 2022 and 2023.

The analysis found that purchase scams remain a common fraud type by volume, with over 156,000 incidents reported last year—a 34% increase from 2022. Telephone banking scams have increased by 19%, with reported losses of £17.6 million in 2023.

Romance scams continue to cause significant financial harm, with losses increasing by 17% to £36.5 million in 2023. These scams typically involve criminals building emotional relationships with victims over time before requesting money for supposed emergencies or investment opportunities.

Reported fraud losses in the UK, 2022 to 2023

While some fraud categories showed encouraging declines, experts warn that criminals are simply shifting their focus to more lucrative methods.

Internet banking fraud has fallen by 22% in value and 57% in incident numbers, which shows that improved security measures in this area are working.

Remote purchase fraud remains the largest category by total value at £360.5 million in 2023, despite a 9% decrease from 2022. This fraud type involves transactions made without a physical card present, such as online shopping.

According to the UK government's Fraud Strategy, fraud now accounts for over 40% of all crime in England and Wales, with an estimated cost to society of at least £6.8 billion annually.

Pedro Braz, CEO of Investing in the Web, commented on the findings: "Card identity theft has reached unprecedented levels, with criminals adapting their techniques faster than many banks can update their security systems.

"Purchase scams are particularly effective because they exploit the trust consumers place in familiar shopping platforms.

"Romance fraud is especially devastating because victims suffer both financial and emotional trauma. Many victims feel too embarrassed to report these crimes, meaning the actual figures are likely much higher than official statistics suggest.

“While improvements in security measures are reducing certain types of fraud, the overall threat remains substantial as criminals constantly adapt. Fraud poses a threat to economic security and is increasingly linked to organised crime groups.

"The best protection remains vigilance and a healthy skepticism of unsolicited communications, especially those creating a sense of urgency or requests for personal information.”