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Thirty billion a year attributed to fraud

February 6, 2010 by admin  
Filed under News, News-Banking

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Fraud is a type of crime that has hit the UK, as well as other major economies, hard over the years, and over the past few years, with the credit crisis and the recession taking their toll, the levels of fraud have become even more disturbing.

Estimates from one recent report have claimed that around £30 billion a year in financial losses can now be attributed to fraudulent activity, with a large percentage of these losses being seen in the financial sector.

It is claimed that the financial sector has been amongst the hardest hit when it comes to fraudulent activity, and the report indicates that around £1 billion in fraud related losses have been seen in the mortgage sector whilst a further £2 billion in fraud related losses has been seen in the insurance sector. In total it is thought that the financial sector has suffered close to £4 billion in financial losses as a result of fraud.

The figures were released by the National Fraud Authority, and a similar report was released back in 2007. However, officials from the authority have said that the latest figures are more accurate and comprehensive than the previous ones that were released because they have taken into account additional figures that had not been included in other studies.

One official from the National Fraud Authority said: “Although the figure appears on the face of it far greater than the previous estimate, we know this is because we have included many additional figures that other studies have not. With this vital information, we can develop clearer priorities to prevent, detect and deter fraudsters. We will use the data to help identify those areas of fraud that cause the most harm to the UK economy.”

Tags: Crimes, Madoff investment scandal, fraud, insurance fraud, U.S. Securities and Exchange Commission, Deception

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