NEWS: Fraud now costs the UK economy £220 billion per year

By PAUL O’DONOGHUE, Senior Correspondent

FRAUD cost the UK economy an estimated £220 billion in 2024-25, according to a major new report.

The private sector accounted for £168 billion, or 76%, of estimated losses. Fraud against the public sector cost a further £49 billion billion annually, according to the report, compiled by consulting firm Crowe, the University of Portsmouth and fraud prevention service Cifas.

The methodology for calculating the losses is based on the framework originally developed by the UK’s National Fraud Authority. It is available to view [HERE].

The report follows on from estimates by the K Fraud Costs Measurement Committee, which has since been abolished.

Tim Robinson, a partner in cyber security and counter fraud at Crowe, said: “You can’t tackle fraud effectively without understanding its true scale.

“At an estimated £220 billion a year, fraud remains the UK’s most common crime and one of its most significant economic challenges.

“At the same time, AI-generated scams, synthetic identities and deepfakes are making fraud harder to detect and easier for criminals to carry out.”

UK fraud costs and impact

Martin Chapman, Crowe’s head of forensic disputes and investigations, highlighted how the immediate financial loss is “often only the starting point”.

“Fraud can trigger lengthy investigations, regulatory scrutiny, operational disruption and reputational damage, with the impact felt by employees, customers and shareholders alike,” he said.

Mike Haley, chief executive of Cifas, said the scale of losses showed that fraud “needs to remain a national priority”.

Professor Mark Button, co-director of the Centre for Cybercrime and Economic Crime at the University of Portsmouth, said fraud is “a major threat affecting every part of the economy” and requires a coordinated national response.