As technology develops and innovation continues to thrive, businesses are faced with an increasing amount of fraudulent activities. According to FraudTrack – a new report from BDO, a leading accounting firm – the amount of fraud more than doubled in 2023. This is hugely concerning for businesses, and it’s largely due to the changes in how fraud is conducted.
Looking at the Fraud Figures
There’s a lot of information to be found in the FraudTrack report, but here are some of the key facts and figures, giving you an insight into what fraud looked like in 2023.
- The amount of fraud more than doubled in 2023, rising to a staggering £2.3 billion. This was the second largest annual fraud total in the last decade, and an increase of 104% compared to 2022.
- The number of reported fraud cases also increased, to 18%, which is the highest increase in the last three years.
- The rise in high value fraud cases – those which exceed £50 million – increased by 60% in 2023. Of these cases, half involved a figure of more than £200 million.
- With a total of £594 million, corruption was the top fraud type by value in 2023. This represents 26% of the total amount.
- The second largest fraud type by value in 2023 was tax fraud, representing 23% of the total amount.
- In 2023, the most fraud was reported in London and the South East, which had a 170% increase in fraudulent activities.
Fraud Has Changed a Lot in Recent Years
The world of fraud has changed a lot in recent years, and this has been largely fueled by advancements in technology and changes in consumer behaviour. We live in a digital world, and fraudsters have become increasingly sophisticated with how they approach fraudulent activity, with many opting for online scams, phishing and system breaches, all of which exploit vulnerabilities within digital platforms.
The Authorised Push Payment (APP) fraud is a prime example of how technology is being used to commit fraud. This type of fraud involves getting individuals to willingly transfer money directly to a fraudsters’ accounts, using urgency to convince them that it’s a legitimate transaction to a bank or service provider. Not only does APP fraud target individuals, it also leads to people having less trust in digital transactions.
This is why it’s important for people to be aware of the common signs of scams, and banks are consistently encouraging people to verify the authenticity of deposit requests before making any transactions. At the same time, banks are having to implement additional security protocols, invest in fraud detection systems and build a culture of awareness among their customers, to mitigate the risks posed by these new fraud tactics.
At Cobra Financial, we are always on hand to help businesses, especially when it comes to recovering unpaid debts and owed funds. If you are owed money as a business, take advantage of our professional business debt recovery services, and receive the money that’s rightfully yours. Contact us today to find out more.
