Economic crime in the UK has been on an upward trajectory, with the Treasury select committee expressing dissatisfaction with the government’s progress in addressing the issue. The Office for National Statistics reported an 18% increase in total crime for the year ending December 2021 compared to the pre-pandemic period, with a notable 54% rise in fraud and computer misuse offences.
The prevalence of fraud in the UK has been exacerbated by the pandemic, with increased online activity providing fertile ground for criminals. International fraud poses a unique challenge due to the difficulty of prosecuting crimes originating overseas. Hitesh Patel of StoneTurn points to the digital world as an enabler for such crimes, while Mike Miller of ICAEW highlights the low risk and high reward dynamic that motivates organized criminal groups.
Despite more alleged fraud cases reaching UK courts in 2021, as reported by KPMG’s Fraud Barometer, the overall value of fraud cases decreased from 2020 to 2021. Action Fraud’s reports indicate a significant gap between the total reported losses and the number of cases that go to court, suggesting a need for more effective prosecution.
The UK’s structure for tackling economic crime is complex, with overlapping authorities and limited resources. Experts like David Gomez of ICAEW and the Police Foundation argue for better resourcing and a more connected approach to prosecuting economic crime. The Treasury Select Committee has called for possibly consolidating the numerous agencies responsible for fighting economic crime into a single entity.
Phishing has become a primary method of fraud, leveraging the pandemic’s behavioral shifts, such as increased online shopping. Computer misuse offences have also seen a significant rise. Annette Barker of KPMG emphasizes the importance of prevention, awareness, and reporting in combatting fraud.
Experts suggest that without substantial government investment in fraud prevention and law enforcement, the UK is unlikely to see a decline in fraud rates. The agility of organized crime groups in a digital world demands a costly but necessary response to protect society from ongoing economic crimes.
