Surge in UK fraud: BDO Report

UK fraud surged to £2.3 billion in 2023, marking a 104% increase from 2022 and becoming the second-largest annual total in a decade, according to BDO's FraudTrack 2024. This rise was primarily driven by corruption and tax fraud, which accounted for 26% and 23% of the total, respectively. Despite this significant increase, less than one in seven fraud offences were reported to the authorities. BDO's analysis also highlights the growing trend of fraud, exacerbated by advancements in artificial intelligence and fraud-enabling technologies. The report notes a significant part of the 2023 fraud total stemmed from two major cases: a £585 million bribery settlement with Entain and a £650 million tax evasion payment by Bernie Ecclestone. Factors such as rising energy bills, inflation, and global supply chain costs, alongside the proliferation of online scams, have contributed to the increase in fraud. Technology, especially social media, online marketplaces, and dating apps, has become a major facilitator of scams, with over 70% of scams occurring through these channels. BDO emphasizes the need for businesses to foster a culture of security and openness to effectively combat the rising tide of fraud.

Source

https://www.bdo.co.uk/en-gb/insights/advisory/forensic-services/fraudtrack