The UK Fraud Report: Where are the biggest fraud hotspots?

25 October 2024

10 min read

Fraud is the most commonly experienced crime in the UK, with scams affecting millions of people up and down the country. In 2023 alone, unsuspecting consumers lost a staggering £2.3 billion to fraud — a shocking 104% increase from the previous year.

In light of this surge in fraudulent activity, we’ve examined data across all UK banks to identify the UK’s fraud hotspots, by analysing the case numbers across various locations using information from the National Fraud Intelligence Bureau (NFIB). Our study has also uncovered the most prevalent types of fraud and the financial impact on individuals and the UK as a whole.

Additionally, to keep you safe, we’ve included tips on recognising scams and guidance on what to do if you find yourself involved in one.

Where are the UK’s biggest fraud hotspots?

Fraud affects every region in the UK, but our research reveals that Wales is home to the top three fraud hotspots in the country.

North Wales tops the list for fraudulent activity, with 3,005 reports submitted over the past 13 months. While this isn’t the highest number of reports overall, North Wales stands out as the area most affected by fraud when adjusted for population.

By calculating the number of fraud reports per 1,000 people, we found that North Wales has the highest rate at 43 reports per 1,000 residents. The financial impact is significant, with nearly £10 million lost to fraud — equating to £141,281 per 1,000 people.

Gwent, located in the south eastern corner of Wales, ranks second among the UK’s biggest fraud hotspots. Over the past year, 2,471 fraud reports were filed, translating to 37 cases per 1,000 residents. The financial toll is significant, with losses reaching £8.9 million — equivalent to £132,808 per 1,000 people.

In third place is South Wales, which saw 5,452 fraud reports in the last 13 months. This equates to 18 reports per 1,000 residents. The total amount lost is a substantial £18.8 million, averaging £62,826 per 1,000 people.

Rank / Location
Number of fraud reports
Number of reports per 1,000 people
The amount lost to fraud
The average amount lost to fraud per 1,000 people
Rank / Location 1. North Wales
Number of fraud reports 3,005
Number of reports per 1,000 people 43
The amount lost to fraud £9,900,000
The average amount lost to fraud per 1,000 people £141,281
Rank / Location 2. Gwent
Number of fraud reports 2,471
Number of reports per 1,000 people 37
The amount lost to fraud £8,900,000
The average amount lost to fraud per 1,000 people £132,808
Rank / Location 3. South Wales
Number of fraud reports 5,452
Number of reports per 1,000 people 18
The amount lost to fraud £18,800,000
The average amount lost to fraud per 1,000 people £62,826
Rank / Location 4. Northamptonshire
Number of fraud reports 3,789
Number of reports per 1,000 people 12
The amount lost to fraud £20,900,000
The average amount lost to fraud per 1,000 people £65,190
Rank / Location 5. Northumbria
Number of fraud reports 4,944
Number of reports per 1,000 people 15
The amount lost to fraud £16,500,000
The average amount lost to fraud per 1,000 people £51,471
Rank / Location 6. Dorset
Number of fraud reports 3,951
Number of reports per 1,000 people 10
The amount lost to fraud £15,700,000
The average amount lost to fraud per 1,000 people £40,963
Rank / Location 7. Nottinghamshire
Number of fraud reports 6,141
Number of reports per 1,000 people 7
The amount lost to fraud £26,300,000
The average amount lost to fraud per 1,000 people £31,504
Rank / Location 8. Surrey
Number of fraud reports 6,635
Number of reports per 1,000 people 5
The amount lost to fraud £40,200,000
The average amount lost to fraud per 1,000 people £33,099
Rank / Location 9. Cheshire
Number of fraud reports 5,096
Number of reports per 1,000 people 7
The amount lost to fraud £20,500,000
The average amount lost to fraud per 1,000 people £26,685
Rank / Location 10. Hampshire
Number of fraud reports 8,777
Number of reports per 1,000 people 6
The amount lost to fraud £39,100,000
The average amount lost to fraud per 1,000 people £27,597

In fourth place is Northamptonshire, with 3,789 fraud reports filed in just over a year, averaging 12 reports per 1,000 residents. The total financial loss is nearly £21 million, which breaks down to £65,190 per 1,000 people.

Northumbria is another significant fraud hotspot, with 4,944 reports submitted over the past 13 months, or 15 reports per 1,000 residents, making fraud slightly more common here than in Northamptonshire. The region has lost £16.5 million to fraud, equating to £51,471 per 1,000 people.

What are the most common types of fraud in the UK?

Fraud has become a significant issue in the United Kingdom, especially with technological advancements over the past decade. In just over a year, there were a troubling 319,686 reported cases. However, it is important to note that not all instances of fraud are reported, which means the true scale of the problem may be even greater.

During this time, these incidents resulted in an estimated total loss of £1.6 billion, underscoring the financial impact of fraudulent activities on individuals and businesses.

On average, each reported case led to a loss of approximately £5,005. This data sheds light on the growing need for increased awareness and stronger security measures to combat fraud in the UK.

To understand exactly how this is happening, we looked closely at which types of fraud are the most common, and how much money has been lost.

Rank / Fraud type
Number of fraud reports
The amount lost to fraud
Percentage of total reported losses
Average amount lost per case
Rank / Fraud type 1. Online Shopping and Auctions
Number of fraud reports 66,787 (21%)
The amount lost to fraud £106,000,000
Percentage of total reported losses 7%
Average amount lost per case £1,587
Rank / Fraud type 2. Other Advance Fee Frauds
Number of fraud reports 33,946 (11%)
The amount lost to fraud £73,700,000
Percentage of total reported losses 5%
Average amount lost per case £2,171
Rank / Fraud type 3. Cheque, Plastic Card and Online Bank Accounts (not PSP)
Number of fraud reports 22,971 (7%)
The amount lost to fraud £82,200,000
Percentage of total reported losses 5%
Average amount lost per case £3,578
Rank / Fraud type 4. Other Consumer Non-Investment Fraud
Number of fraud reports 21,994 (7%)
The amount lost to fraud £73,600,000
Percentage of total reported losses 5%
Average amount lost per case £3,346
Rank / Fraud type 5. Other Financial Investment
Number of fraud reports 15,160 (5%)
The amount lost to fraud £294,900,000
Percentage of total reported losses 18%
Average amount lost per case £19,453
Rank / Fraud type 6. Computer Software Service Fraud
Number of fraud reports 12,939 (4%)
The amount lost to fraud £9,900,900
Percentage of total reported losses 1%
Average amount lost per case £765
Rank / Fraud type 7. Ticket Fraud
Number of fraud reports 10,143 (3%)
The amount lost to fraud £9,800,000
Percentage of total reported losses 1%
Average amount lost per case £966
Rank / Fraud type 8. Dating Scam
Number of fraud reports 9,578 (3%)
The amount lost to fraud £103,200,000
Percentage of total reported losses 6%
Average amount lost per case £10,775
Rank / Fraud type 9. Door-to-Door Sales and Bogus Tradesmen
Number of fraud reports 6,701 (2%)
The amount lost to fraud £39,300,000
Percentage of total reported losses 2%
Average amount lost per case £5,865
Rank / Fraud type 10. Rental Fraud
Number of fraud reports 4,963 (2%)
The amount lost to fraud £9,700,000
Percentage of total reported losses 1%
Average amount lost per case £1,954

1. Online Shopping and Auctions

Online shopping and auction fraud is the most prevalent type of fraud in the UK, often involving scammers posing as legitimate sellers through fake retail websites or social media platforms.

Over the past 13 months, 66,787 reports of online shopping or auction scams have been filed, making it the most commonly reported form of fraud. To put this in perspective, this type of fraud accounts for nearly a quarter (21%) of all fraud reports in the UK.

The financial impact is significant, with losses totalling £106 million, representing 7% of the total fraud-related losses during this period. Although the average loss per case is £1,587 — a relatively low figure compared to other types of fraud — the sheer volume of incidents has led to the second-highest cumulative losses in the country.

2. Advance Fee Fraud

Next on the list is advance fee fraud, where individuals are tricked into making upfront payments for goods or services that don’t actually exist. A common example is paying to enter a fake competition advertised on social media, where the prizes do not exist.

In just over a year, 33,946 cases of advance fee fraud were reported, making up 11% of all fraud reports. The total financial loss amounted to £73.7 million, representing 5% of the overall losses. On average, victims lost around £2,171 per case, highlighting the significant impact of this type of scam.

3. Cheque, Plastic Card and Online Bank Accounts

This type of fraud involves scams related to bank cards, cheques, and online accounts. Criminals may steal a card or chequebook, giving them access to your funds. This can happen through various methods, including ATM skimming, using counterfeit cards, or identity fraud, where someone impersonates another person to gain access to their finances.

There have been 22,971 reported cases of this kind of fraud, accounting for 7% of all fraud reports in the UK. The financial impact is significant, with losses totalling £82.2 million — approximately 5% of the country’s total fraud losses. On average, each case results in a loss of £3,578.

4. Consumer Non-Investment Fraud

Next is consumer non-investment fraud, where businesses deceive consumers to obtain money or personal information without involving investments. This type of fraud can take the form of phishing scams or service scams. In just over a year, 21,994 cases were reported in the UK, leading to total losses of £73.6 million, accounting for 5% of the country's total fraud-related losses.

5. Other Financial Investment

‘Other financial investment’ fraud involves scams related to investments or securities, where criminals persuade victims to invest in non-existent schemes. Although only 15,160 cases were reported in the past year, the financial impact per victim is significant, with average losses of £19,453 per case. In total, this type of fraud has cost the UK an astounding £294.9 million over just 13 months, representing 18% of all reported losses in the country.

6. Computer Software Service Fraud

This type of fraud typically involves a scammer contacting someone with an offer to fix a supposed problem with their computer, often for a fee. The real aim is to gain access to the victim's bank details. Over the past year, 12,939 cases of this fraud have been reported, costing the UK a total of £9.9 million, with an average loss of £765 per victim.

7. Ticket Fraud

Ticket fraud occurs when someone sells fake or non-existent tickets to events like concerts or festivals. There have been 10,143 reported cases of ticket fraud, resulting in total losses of £9.8 million. On average, each victim loses about £966.

8. Dating Scams

This type of fraud involves scammers creating fake dating profiles online to steal money or personal information from victims. In just 13 months, 9,578 cases have been reported, resulting in total losses of £103.2 million — accounting for 6% of all fraud-related losses in the UK. On average, each victim loses £10,775 to this scam.

How to spot signs of fraud and what to do if you are scammed

Although many of us think we can easily spot a scam, this is not always the case. Even the most cautious individuals can fall prey to fraudsters' schemes. As technology advances, scammers' methods are becoming increasingly sophisticated and inventive.

To help you avoid falling victim to fraud, we’ve compiled some essential tips on recognising the signs and steps to take if you find yourself scammed

1. Protect your personal information

If you receive a request to disclose personal information, like your bank account details, passwords or national insurance number, there is a good chance this could be a scam. Scammers often pose as legitimate organisations or trusted individuals to trick you into sharing sensitive information.

The more cautious you are about sharing personal information, the better you can protect yourself from becoming a victim of fraud. Remember, legitimate organisations rarely ask for sensitive information via email, phone, or text, especially without prior notice.

2. Watch out for offers that are ‘too good to be true’

If you ever find yourself thinking that the price for a product is too good to be true, chances are you’re probably right. Offers with extremely low prices or guaranteed returns on investments are red flags, and it’s likely to be a scam.

For example, a product listed at a fraction of its usual cost could be a counterfeit or simply a ruse to collect your payment information without delivering anything at all. Similarly, investment opportunities that assure you of high returns with little or no risk are classic signs of a scam.

3. Ask for credentials

If you’re unsure about a business or company, make sure to ask for verified credentials to check they are who they say they are. These credentials might include business licences, professional certifications, or affiliations with reputable organisations. If they are unable to provide this, there is a good chance this is fraudulent activity.

If you do realise you’ve been scammed, there are steps you can take before the situation becomes worse.

4. Cut all contact with the suspected scammer as soon as possible

Stop communication with the scammer immediately. Next, if you've authorised any transactions — whether it's a payment, a transfer, or providing your bank details — you should act quickly by contacting your bank to prevent those transactions from going through.

Additionally, if you've shared any sensitive personal information, such as your National Insurance number, bank account details, or passwords, you should take steps to secure your accounts. This might include changing passwords, or even setting up alerts for suspicious activity.

5. Report a suspected scam to your bank as soon as possible

Contact your bank or credit card provider immediately to explain the situation. They may be able to cancel pending payments, stop a transfer, or even reverse a transaction if it hasn't yet been fully processed. Many financial institutions have protocols in place for dealing with fraud, so the sooner you notify them, the better your chances of recovering your funds.

6. Report the crime

If you believe you've been the victim of a scam or fraudulent activity, it's important to report the incident as soon as possible. The primary organisation for handling such reports is Action Fraud, which is the UK's national reporting centre for fraud and cybercrime.

If you're not comfortable reporting online, Action Fraud also offers a phone reporting service, where you can speak directly with a fraud advisor who can help you with the process.

Methodology:

To find out the locations in the UK that experience the most fraudulent activity, we used online data from the National Fraud Intelligence Bureau (NFIB). We gathered a seed list of police forces in the United Kingdom to create a list of UK locations, then ranked these on a series of metrics.

The metrics we looked at were:

We then ranked each of these locations from those with the most fraudulent activity to the least fraudulent activity.

*Please note: the locations were ranked by fraud reports and losses per 1,000 people in order to make the ranking fair due to differing population sizes.

To find out the most common types of fraud in the UK, we gathered a seed list of different types of fraud. NFIB data was then used to determine the number of fraud reports for each and the total amount lost to fraud for each.

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