Number of fraud cases in UK courts doubles in past year

The number of alleged fraud cases being heard in UK courts almost doubled in the first half of of 2021, as scammers took advantage of vulnerable, isolated people during the pandemic.  

There were 151 alleged fraud cases that were heard in the first six months of the year, compared to 76 cases in the same period in 2020, according to accountant KPMG UK’s Fraud Barometer.

The firm also found that cases where the public, rather than businesses, were scammed increased by 285 per cent to 50 cases in the first half of 2021, with victims trying to claim back £43.1million.

There has been an increase in fraud involving tradespeople, as elderly people transferred money for services they didn’t need or that were never delivered

This was compared to just 13 cases heard over the same period in 2020, when people tried to reclaim £22.6million.

The spike in cases that have successfully made it through the legal process suggests that the number of people who fell victim to fraud also rocketed.  

KPMG said the rise in cases was thanks to ‘the extraordinary conditions created by the pandemic,’ which saw professional criminals take advantage of the general public in their own homes.

Its data recorded alleged fraud cases with a value of over £100,000, not including online fraud. 

It showed that cases relating to rogue tradesmen more than doubled in volume in the first half of 2021, and were valued at £2.5million.

Most of these instances involved elderly and vulnerable people who were scammed for unnecessary work, or paid for services that were then never delivered.

This spike is potentially a result of an absence of family members or carers who would usually offer support or financial advice on these matters. 

Meanwhile, 16 cases involving account takeover appeared in court, worth over £8million. The majority of these cases related to professional criminals who took advantage of people stuck at home.

In one case, a gang leader was jailed for six years for conning 15 people out of over £200,000. This included a 96-year-old victim who handed over their savings.

The gang called victims claiming to be bank officers and persuaded them to protect their savings by moving the money to a temporary safe account – but in reality, it was one controlled by the crooks.

The figures also reveal 10 probate cases relating to people’s wills, worth over £3.3million in the first half of this year. Last year there were only four cases, totalling £2.3million. 

Roy Waligora, partner and head of UK Investigations at KPMG, said: ‘Professional criminals have seized on the opportunities created by the global pandemic to target victims in their own homes.

‘From phishing and text scams to posing as banks to get unsuspecting customers to allow their accounts to be taken over – having a captive audience at home during lockdown has provided the perfect opportunity for unscrupulous criminals to take advantage.’

However, the total value of alleged fraud reaching UK courts in the first half of 2021 fell 70 per cent year on year, standing at £139.1million.

151 alleged fraud cases were heard in the first six months of 2021, compared to 76 last year

Waligora said this may have been down to delays caused by the pandemic. 

‘The legal system, like much of the world, has adapted quickly to adopt technology to help alleviate the huge numbers of cases that were put on hold last year when the pandemic first hit,’ he said.

‘To give a feel for the previous levels we have seen, the first half of 2019 saw fraud values of over £319million and in the same time in 2018 we saw over £895million.

‘Whilst the number of alleged fraud cases reaching court is significantly up on last year, no super-cases have been recorded in the data, which may point to more complex cases being delayed.’

Working from home has also led to a rise in certain types of scam. The number of procurement frauds heard in courts in the first half of 2021 was up 400 per cent from just three cases heard in the first half of 2020, with a value of £2.6million, to 15 cases this year with a value of £9.5million.

This type of fraud relates to a company purchasing goods, services or commissioning construction projects from third parties. 

The figures also revealed embezzlement fraud had increased from 15 cases worth £8million in 2020 to 26 cases worth £15.9million in 2021.

This included the case of a company secretary who was jailed for five years for stealing £1.7million from her employer to fund a horse-buying habit that she described as ‘more addictive than drugs’.

Her employer only discovered the theft when it began receiving debt collection letters following the sale of the company. 

Many scammers took advantage of the pandemic and people being stuck at home as a result

Customers struggle to tell bank of fraud 

Separate research from consumer organisation Which? revealed that some customers have struggled to contact their bank after they had been a victim of a scam.

Of the people who reported fraud to their bank via phone or webchat, 15 per cent said they waited 30 minutes or more to speak to someone.

In extreme cases, this delay could cost customers thousands of pounds.

The website also found that 32 per cent of victims of fraud or attempted fraud said their bank did not offer advice or resources to help them better protect themselves in the future.

The figures come amid growing concerns over ‘recovery fraud,’ where victims are scammed again by fraudsters pretending to help them recoup their losses.

This type of fraud has seen a 39 per cent increase since last year, with victims losing £14,408 on average.

What can scam and fraud victims do?

Those who have fallen victim should call their bank directly, checking its website for the correct number.

If the fraud involved any of your personal information, consider signing up for a Protective Registration with Cifas, which costs £25 for two years.

This means the customer’s details will be flagged as being vulnerable on the National Fraud Database, so that companies will take extra steps to protect them and stop scammers accessing their information.  

Victims are also advised to change their passwords for any accounts that have been compromised due to fraud and any that use the same password.

Setting up two-factor authentication is also recommended, where possible, to provide another layer of protection.

Meanwhile, the entitlement to a refund depends on the type of fraud that a person falls victim to.

In the case of unauthorised fraud, where money is taken from your account without permission, your debit or credit card provider must refund you unless they can prove that you’ve been grossly negligent or acted fraudulently.

However, if you were tricked into sending money to a scammer, known as authorised push payment (APP) fraud or bank transfer fraud, there is no such legal protection against losses.

Most major banks have signed up to a voluntary reimbursement code on bank transfer scams which not only instructs them to reimburse customers who are not at fault, but also to provide them with adequate support.

However, firms signed up to the code have been criticised for how they are providing support to customers.

A recent report by the Lending Standards Board (LSB) found that some firms were failing to meet the requirements of providing a response on reimbursement claims within 15 days, or 35 days in ‘exceptional circumstances’.

To make matters worse, the LSB said there was little evidence in these cases of firms providing any updates to the customer about the delay and when they could eventually expect a decision.

This post first appeared on Dailymail.co.uk