A recent study sponsored by Santander UK has revealed the alarming scale of fraud in the UK, with millions of people falling victim over the past three years, resulting in an estimated £16 billion ($21 billion) loss to the economy. The study, conducted by the Social Market Foundation (SMF), surveyed 28,000 respondents across 15 European countries, uncovering that 21% of participants experienced fraud between 2021 and 2023. The direct financial cost of these incidents is estimated to be £168 billion, though the total cost, including productivity losses from the time spent recovering and reporting fraud, reaches a staggering £420 billion.
In the UK alone, the average victim lost £907 to fraud, amounting to a direct financial cost of around £9 billion. While the study primarily focused on the financial impact, it also highlighted that a significant portion of the fraud occurred online, with digital platforms being a major avenue for fraudsters. According to the findings, 94% of respondents believed banks and payment services should take responsibility for compensating victims, while 88% felt digital platforms and 84% pointed to telecom and internet providers as sharing this responsibility.
Fraud originating on social media platforms has become a significant issue, with a recent study from Revolut revealing that 60% of fraud reported in 2023 came from Meta-owned platforms like Instagram. Many of these incidents involved investment scams. This situation has prompted calls for a coordinated global effort to combat fraud, with both the SMF and Santander urging the British government to take the lead in this initiative. SMF’s senior researcher Richard Hyde emphasized the need for international collaboration to tackle fraud, which transcends borders and can affect victims worldwide.
To address the rising tide of fraud, the SMF has proposed a series of actions for the UK government, including lobbying for an international agreement to prioritize fraud prevention and enhancing the law enforcement response to economic crime. They also advocate for creating a cross-departmental Economic Crime Leadership Group and securing long-term funding for the “Stop! Think Fraud” awareness campaign. Additionally, the SMF emphasizes the importance of increasing support for anti-fraud initiatives in low and middle-income countries to strengthen global fraud prevention efforts.
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