Personal loan provider Fluro has researched the areas of the UK where fraud is most prevalent, which types of fraud cost consumers and businesses the most, which types are most commonly reported, and the difference in reporting figures YoY. The team at Fluro have also shared their tips on what to look out for to avoid becoming a victim of fraud.
- Areas covered by the Metropolitan, Surrey, and Thames Valley police forces revealed as the UK’s fraud hotspots
- Financial investment schemes are the top type of fraud responsible for the biggest cash loss
- Fraud reports increased by 6.5% YoY overall, with online shopping and auctions fraud seeing the biggest increase
London Metropolitan police force received more fraud reports than police in any other part of the UK
Over the past 12 months, 52,054 fraud cases were reported to the London Metropolitan Police force, costing consumers in Greater London (excluding the City of London) a total of £450.5 million. Surrey follows next as the second largest fraud hotspot in the UK with 6,456 reported cases amounting to a total loss of around £40.5 million. Thames Valley ranks third with reports over a 12-month period totalling 12,246 for a total loss of £77.5 million.
The table below shows the UK’s top five fraud hotspots:
| Police force | Number of reports | Number of reports
per 1,000 people |
Value lost (£) (million) | Average amount lost
per 1000 people (£) |
| Metropolitan | 52,054 | 5.8 | £450.5 | £50,111 |
| Surrey | 6,456 | 5.4 | £40.5 | £33,750 |
| Thames Valley | 12,246 | 5.2 | £77.5 | £33,120 |
| Dyfed-Powys | 3,531 | 6.8 | £10.1 | £19,312 |
| Dorset | 4,155 | 5.3 | £20.4 | £26,255 |
Financial investment schemes is the top type of fraud responsible for the biggest cash loss, totalling £337.9 million in 2022
In just one year there were 14,847 reports of fraud relating to financial investment schemes, through which the public lost a total of £337.9 million. Pyramid and Ponzi schemes are the second most costly type of fraud on a nationwide scale, with 3,740 cases leading to a total loss of £250.4 million. Share sales and boiler room fraud round off the top three most expensive types of fraud, with losses totalling 146.7 million.
| Top 5 types of fraud totalling the most value lost | ||
| Type of fraud | Number of reports | Value lost in £ total (million) |
| Other financial investment | 14,847 | £337.9 |
| Pyramid or Ponzi schemes | 3,740 | £250.4 |
| Share sales or boiler room fraud | 5,035 | £146.70 |
| Cheque, plastic card and bank accounts | 21,330 | £132.4 |
| Online shopping and auctions | 72,147 | £98.1 |
Fraud reports increased by 6.5% YoY overall, with online shopping and auctions fraud seeing the biggest increase
Over the past 12 months, the total number of fraud reports made to Action Fraud, Cifas, and UK Finance rose by 6.49%, resulting in an increase in loss of £20 million.
Reports of online shopping and auction fraud rose by 55.68% YoY, which might be a sign that scammers are using increasingly sophisticated schemes and a warning sign that shoppers need to take extra care when paying for goods and services online.
Tips to avoid being scammed
Nicholas Harding, the Founder and CEO at Fluro, wants to make sure that UK consumers know “Fraudsters are constantly inventing new ways to trick people, which is why it’s crucial that individuals stay up to date on the latest best practices for preventing scams. Here are a few actions you can take to help keep your money safe;
Never give your personal information to organisations or people without confirming their credentials. Be extra cautious of unsolicited calls, texts, or emails that ask for personal or financial information like your name, address, bank details, email address, or phone number. Instead, always contact the company directly using a phone number or email address on a legitimate piece of correspondence they’ve sent you.
If a business opportunity or deal seems too good to be true, it probably is. Always question letters, phone calls, or emails offering you a seemingly amazing deal out of nowhere. Trust your gut and listen to your instincts, always question it if it feels wrong.
Don’t click any link in an email asking you to confirm your bank details. If you receive an unexpected email or text from your bank, remember that they will never ask you to confirm your details by clicking a link – even if it might look genuine, fake email addresses and phone numbers can be made to mimic the official ones.
Your bank will never ask you to transfer money to a “safe account”. Your bank will never call you and request your OTP (one time passcode) to authorise payments, set up a new payee or register a device for online banking. Your bank will never ask you to reveal your PIN or password for online banking. Always check large credits into your bank account. Be wary of references such as “loan” and contact the organisation it came from directly if you are suspicious.
