Fraud is a tale as old as time, but its guises evolve with the ages. Let’s have a look into some of the most notable frauds and understand the psychological underpinnings that make them so effective.

The Nigerian Prince Story was pretty obvious right?

“Send me your bank details so I can send you money,” said the elusive Nigerian prince. It sounds absurd, yet this scam has defrauded victims of a staggering $4.5 billion.

https://www.irishnews.com/news/business/understanding-the-risks-of-financial-fraud-XVU3NB7KPBH5PB3Y3VBJKNVBJU/

A phantom passenger claim in its simplest form is an injury claim from a person that was not present in a vehicle involved in a crash. It is certainly one of the more brazen ways to pursue a fraudulent injury claim by attempting to circumvent any fraud detection process and acquire a quick compensation pay out.

Identifying claims for further investigation can be as straightforward as noticing that there are more claimants than seats in a vehicle, the at-fault driver disputing the presence of a passenger, or there are photographs / video footage showing vehicle occupancy.

https://kennedyslaw.com/en/thought-leadership/blogs/fraud-blog-fundamentally-honest/navigating-the-ghostly-realm-of-a-phantom-passenger/

Aviva has seen a significant uptick in fraudulent claims for 2023, the insurer said in a recent news release.

Aviva revealed a 39% increase in fraudulent claims, with more than 11,000 suspect claims valued at £116 million – averaging 30 bogus claims daily worth £318,000. Additionally, the insurer is investigating 13,100 more claims for potential fraud.

https://www.insurancebusinessmag.com/uk/news/breaking-news/aviva-sees-spike-in-fraudulent-claims-494919.aspx

Tax fraud cases in the UK rose 49%, reaching 94 in 2022/23, as HMRC intensifies crackdown

The number of criminal cases brought for tax fraud in the UK has surged by 49% in the last year, increasing from 63 proceedings in 2021/22 to 94 in 2022/23, according to multinational law firm Pinsent Masons. This rise reflects HMRC's intensified efforts to combat tax crime.

https://www.solicitorsjournal.com/sjarticle/criminal-cases-against-tax-fraud-up-49-in-past-year--94-cases-last-year

The new criminal offence of failure to prevent fraud will likely result in a transformational corporate culture shift with respect to how fraud is viewed amid an ongoing fraud epidemic in the UK.

Currently, approximately 40% of reported crime in England and Wales is due to fraud, according to a recent House of Commons Justice Committee report (50 pages / 586 KB).

https://www.pinsentmasons.com/out-law/analysis/eccta-failure-prevent-fraud-offence-create-culture-shift

According to a survey conducted by LexisNexis Risk Solutions on digital trust, banking is the most trusted sector, with 86% of UK consumers deeming banks trustworthy.

However, only 28% of consumers deem government institutions trustworthy. So, how can the government support the national fight against fraud?

https://www.openaccessgovernment.org/how-the-government-can-support-the-national-fight-against-fraud/178378/

As many as 15 million Brits could have fallen victim to scams in the past 12 months, according to new research from Wise, the international money app.

According to a poll of 2,000 UK adults, Wise found that 28 per cent of Brits have lost money to scammers, highlighting the need for increased awareness and protective measures as scams become more sophisticated.

https://thefintechtimes.com/wise-turns-to-education-as-preventative-measure-against-fraud-as-28-of-brits-hit-by-scams-annually/

The ongoing economic challenges in the UK have significantly impacted families nationwide, forcing individuals and businesses to cope with rising bills and soaring interest rates. Amid this financial uncertainty, there has been a noticeable increase in expense fraud, which poses serious implications for businesses across the country.

A survey conducted by Emburse, involving over 1,000 workers and facilitated by YouGov, highlights the prevalence of expense fraud. The findings reveal that nearly a quarter (24%) of employees admit to making personal purchases and passing them off as business expenses due to their financial circumstances.

https://ifamagazine.com/addressing-the-surge-in-expense-fraud-essential-measures-for-uk-businesses/

The Chartered Trading Standards Institute (CTSI) is proud to be the first signatory of the new National Trading Standards (NTS) Scams Team’s ‘Fraud and Scams Victim Charter’. This is another milestone in the work of both CTSI and NTS to support and inform consumers with regards to the scams and frauds they may experience.

The Charter will support victims of frauds and scams; it explains the standard of service that victims of these crimes can expect and from organisations who sign up to the Charter. This includes commitment to not blame or shame victims but to show empathy, understanding and compassion, and reminds us of how we should treat all victims of crime, but with a focus on fraud and scams.

https://www.wired-gov.net/wg/news.nsf/articles/CTSI+is+proud+to+be+first+signatory+to+sign+up+to+new+National+Trading+Standards+Fraud+and+Scams+Victim+Charter+21062024120500

Every business in the world has one thing in common—the need to accept payments for their services or goods. However, it’s never as simple as it sounds, especially when you consider the role fraud plays. Global losses from online payment fraud are projected to soar past $362 billion in the next five years. In the UK alone, businesses took a hit of over £173.8 million in the first half of 2023 due to card-not-present fraud.

https://www.msn.com/en-gb/money/other/why-fraud-prevention-strategies-are-backfiring-for-businesses/ar-BB1oEnvJ