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| Every UK household subsidises fraudsters annually by an estimated £1800 | |
| Fraud is the largest cause of revenue loss for financial services companies |
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The cost and impact of Fraud in the UK is notoriously difficult to calculate.
Why?
Because Fraud is notoriously difficult to detect. Published figures are rarely anything other than best guesstimates based on what traditional detection capabilities have managed to uncover.
That said, the figures still make for very disturbing reading.-
For the year 2000, the Home Office estimated that the UK fraud bill was in the region of £14 billion – and went on to suggest that the impact on the UK economy could be as much as £40 billion.
- The Association of British Insurers (ABI) estimates fraudulent claims on UK household and motor policies alone cost around £20 million a week, whilst the overall Insurance Fraud bill is now thought to be in the region of £3 billion. (Experian)
- The British Banking Association (BBA) and the UK Payments Association (APACS) conservatively estimate the combined costs of plastic and cheque related fraud in the UK at around £1.5 billion.
One thing is for certain, the cost of fraud is inevitably borne by society. Every UK household seems to be subsidising fraudsters to the very loud tune of some £1800 or more per annum.
Ignoring the importance of real-time validation will inevitably delight the fraudsters, frustrate genuine customers and significantly erode business efficiencies and profit.
