New research finds that up to 45% of fraud is linked to organised crime.

New research by the Police Foundation and Perpetuity Research has found that between 31% and 45% of fraud may be linked to organised crime.  This is up to three times higher than the 15% found in previous studies.

The research, which was funded by the Dawes Trust, looked at a large sample of frauds taking place in the Midlands and the South West.  It found that fraud linked to organised crime was more harmful to victims than other types of fraud.  On average, individual victims of organised fraud were likely to lose significantly more money per fraud offence (£10,260) than victims of non-organised fraud (£3,982).

The Director of the Perpetuity Research, and one of the authors, Professor Martin Gill said

‘We know that fraud, particularly online fraud, is the new volume crime. Our research shows that organised crime groups play a much larger role in fraud than has previously been estimated and that fraud linked to organised crime causes much more harm than other types of fraud.’

Investment Fraud was most likely to be linked to organised crime, with 69 -70% estimated to be perpetrated by organised crime groups. Between a third (38%) and over a half (59%) of Mass-Marketing Fraud is estimated to be linked to organised crime.

The research also found that the police response to fraud was inadequate.  Unlike traditional crime types such as burglary and vehicle crime, victims who report a fraud rarely receive a visit from a police officer or any other official. There are many agencies holding a wide range of powers which could bolster the local response to organised fraud, however at present these agencies only work together on an ad-hoc basis and systematic data sharing is virtually non-existent. Given the complexity, the expense and the low success rate of fraud investigations, a more problem-oriented, multi-agency approach would, the researchers argue, be more effective.

Police Foundation Director Rick Muir said,

‘Despite its increasing scale across the UK, fraud does not currently get the recognition it deserves and tends to fall between the gaps of a number of agencies, including the police. Whilst the offenders of organised fraud are difficult to prosecute it is clear that there are vulnerable victims to safeguard, communities to protect, and crimes to be prevented. Therefore, it is more important than ever to ensure that agencies and authorities do not relinquish their responsibilities in tackling it.’

Action Fraud receives on average 25,000 reported frauds per month, which based on our estimates means that between 7,000 and 12,000 reported frauds could be perpetrated by organised criminals every month. In practice, only a small proportion of these incidents are ever investigated by forces. Furthermore, forces are not systematically recording the outcomes of fraud investigations and are therefore not being properly held to account.

To download a copy of the briefing please click here

For more information contact Perpetuity Research on 01892 538690 or via prci@perpetuityresearch.com

One comment

  • One often reads of scams involving many thousands of pounds that are transferred by victims. These funds then “disappear”. Opening an account involves a significant amount of proof of identification and transferring large sums is also subject to checks. So how to the thieves gain access to the transferred money so easily? Also what efforts are being made by banks and police at this end of the scam?

    Regards
    Walterkite

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