annual fraud indicator - gov uk annual fraud indicator 4. introduction. fraud harms all areas of the

Annual Fraud Indicator March 2012

Annual Fraud Indicator

Contents

Foreword by Stephen Harrison .....................................................................................................................................................................3

Introduction..................................................................................................................................................................................................................4 Fig 1: Improving the Estimate of fraud loss against the UK..................................................................................................................5 Fig 2: Breakdown of fraud losses by victim group ...............................................................................................................................7

Summary .........................................................................................................................................................................................................................8 Key findings ....................................................................................................................................................................................................................8

Fraud by victim...............................................................................................................................................................................................8 Private sector .....................................................................................................................................................................................8 Public sector .......................................................................................................................................................................................9 Not-for-profit sector ......................................................................................................................................................................9 Individuals ............................................................................................................................................................................................9

Fraud by enabler ...........................................................................................................................................................................................9 Fraud by type ............................................................................................................................................................................................... 10

Fraud by victim .........................................................................................................................................................................................................11 Public sector ................................................................................................................................................................................................................11 Private sector.............................................................................................................................................................................................................. 15 Not-for-Profit sector .............................................................................................................................................................................................. 19 Fig 3: Not-for-Profit Sector ................................................................................................................................................................................20 Individuals .................................................................................................................................................................................................................... 21

Fraud by enabler ....................................................................................................................................................................................................23 Fig 4: Key fraud enablers ....................................................................................................................................................................................23 Insider-enabled fraud ...........................................................................................................................................................................................24 Identity fraud .............................................................................................................................................................................................................26 Cyber enabled fraud .............................................................................................................................................................................................28 Fraud perpetrated by Organised Crime Groups ................................................................................................................................29 Fraud by type............................................................................................................................................................................................................30 Benefit fraud ...............................................................................................................................................................................................................30 Blue badge scheme abuse ................................................................................................................................................................................ 31 Council tax fraud .....................................................................................................................................................................................................32 Electricity scams .......................................................................................................................................................................................................33 Grant fraud ..................................................................................................................................................................................................................33 Housing tenancy fraud ........................................................................................................................................................................................34 Insurance fraud .........................................................................................................................................................................................................35

Staged motor vehicle accidents ......................................................................................................................................................35 Mass marketing fraud...........................................................................................................................................................................................36 Mortgage fraud ........................................................................................................................................................................................................37 Motor finance fraud ...............................................................................................................................................................................................38 National Savings and Investments fraud ................................................................................................................................................38 Online ticket fraud ..................................................................................................................................................................................................39 Patient charges fraud ...........................................................................................................................................................................................39 Payroll fraud ................................................................................................................................................................................................................40

Expenses fraud ............................................................................................................................................................................................ 41

Annual Fraud Indicator

Pension fraud ............................................................................................................................................................................................................. 41 Private rental property fraud ..........................................................................................................................................................................42 Procurement fraud .................................................................................................................................................................................................43 Recruitment fraud ...................................................................................................................................................................................................45 Retail Banking fraud .............................................................