Insurance fraud just £2bn but industry picks up other costs

The National Fraud Authority (NFA) has said all forms of fraud cost the UK £30bn a year, or £621 per adult, with losses were paid for through taxes and rising prices of products and services, the BBC reports.

  • 58% of fraud was in the public sector, at a cost of £17bn
  • £15.2bn lost through tax fraud - 3% of tax liabilities
  • Consumer scams £3.5bn
  • 31% of losses came in the private sector
  • Financial services sector lost an estimated £3.8bn
  • Insurance fraud £2bn
  • Mortgage fraud £1bn
  • Consumer goods industry £1.3bn
  • Manufacturing £1bn a year
  • Technology, media and telecommunications lost £948m.

"Although the figure appears on the face of it far greater than the previous estimate, we know this is because we have included many additional figures that other studies have not," said NFA chief executive Bernard Herdan.

"With this vital information we can develop clearer priorities to prevent, detect and deter fraudsters. We will use the data to help identify those areas of fraud that cause the most harm to the UK economy.

The NFA is part of the UK Attorney General's Office.

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