Fraud

Organised criminals are involved in a wide range of frauds that cause significant harm to UK individuals, businesses and institutions, as well as to the Exchequer. It’s usually recognised to cause economic harm, but fraud is often perceived to be a victimless crime. In reality, many frauds are targeted against individuals.

These include frauds which encourage investment in bogus schemes with the promise of high returns, often specifically targeted against the elderly or other vulnerable groups. Individuals who are victims of fraud, including those who have their identities stolen and used criminally, may lose their livelihood, savings and homes.

Fraud affects everyone

Frauds targeted against businesses cause many problems too. As well as the theft of assets and loss of profits, the production and sale of counterfeit goods, some of which pose a health and safety risk, can damage the reputation and trading position of companies. Some companies go bankrupt as a result.

This in turn affects individuals, since it may lead to job losses, increased prices and higher insurance premiums. Frauds against institutions, such as banks, can in extreme cases lead to collapse. Usually though, they serve to undermine public and customer confidence in the integrity of systems, including Internet-based services, and the security of their personal data and assets.

At a national level, large scale frauds targeted against the Exchequer, such as organised child benefit fraud, have a similar effect on public confidence. They also reduce the revenue available for public spending and services. The increasing cost of measures to combat fraud also reduces what’s available for spending elsewhere.

Fraud can even result in harm to the reputation of the UK as a safe country in which to do business and therefore have a negative effect on the economy.

Find out more about fraud now

For further information on the many different types of fraud, please see the fraud section of the UK Threat Assessment (765.62 kb PDF)

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