Annual fraud costs UK consumers £1.2bn

Finance experts, RIFT, recently reported that cases of fraud cost UK consumers £1.2 billion annually. There has been a decline of 3.9% in fraud cases between 2021 and 2022. Despite this decrease, the latest available data recorded nearly three million incidents.

Payment card fraud was the most prevalent, with scammers making over 2.7 million unauthorised withdrawals in a year. Purchase scams saw a 17.5% increase in reported cases compared to the previous year, totalling 117,170 cases. Other types of fraud, including advance fee fraud, cheque-related fraud, romance scams, and impersonation-based fraud, also experienced an upward trend.

As Christmas approaches, Experian anticipates a peak in credit card fraud during November and December. McAfee’s data reveals that 22% of Brits have fallen victim to online scams during festive shopping. 61% have experienced financial losses.

To protect against scams, advisers recommend that consumers exercise caution. Avoid making payments to unfamiliar entities, verify website authenticity and log out of websites after use.

A prevalent Christmas scam involves fake shipping and delivery messages demanding additional fees. Consumers are urged not to click on any links or make payments unless they are sure about the legitimacy of the message. Reporting all fraud immediately to both the bank and Action Fraud is crucial. This increases the chances of recovering lost funds and helping to track down the criminals.

Bradley Post, managing director of RIFT, stated:

“While banks, online retailers and law enforcement are working hard to thwart fraudsters, the unfortunate truth is that it still falls to all of us as individuals to stay vigilant in order to protect ourselves from these scammers.

Criminals are increasingly sophisticated, particularly when it comes to online scams, and they operate in such large numbers that it’s hard to stop them all. But by following some basic rules of fraud self-defence, you have a much better chance of stopping them in their tracks.”

Combatting fraud requires the collective effort of individuals, financial institutions, and law enforcement to curb scams during the festive season and beyond.

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Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.