The UK is facing a mounting fraud crisis with a 33% rise in reported cases over the past year, yet prosecutions are falling and police resources remain critically stretched. A prominent UK policing think tank, the Police Foundation, has called for urgent reforms, including the establishment of a new national anti-fraud watchdog—dubbed a Crime Prevention Agency—to better coordinate and strengthen the country’s response to fraud.
Fraud Epidemic in the UK: Alarming Statistics
Fraud now accounts for approximately 40% of all crime in England and Wales, with an estimated 4.1 million incidents recorded in the year leading to December 2024. This represents a sharp 33% increase compared to the previous year, signaling a rapidly escalating problem. The financial cost to society is staggering, with fraud estimated to cost £6.8 billion annually.
Despite this surge, only 3,641 fraud cases led to charges in the latest year—a 10% decrease from the year before—highlighting a widening gap between crime occurrence and effective law enforcement1. Furthermore, data from the fraud prevention organisation Cifas reveals that 1 in 8 UK residents admitted to engaging in fraudulent conduct over the past 12 months, underscoring the pervasiveness of the issue.
Telecom giant Virgin Media O2 reported blocking over £250 million in fraudulent transactions in a single year, illustrating the scale of fraud attempts targeting businesses and consumers alike.
Police Response: Under-Resourced and Fragmented
The current policing framework for fraud is widely seen as outdated and inadequate for the scale and complexity of modern fraud, which often involves sophisticated, cross-border organised crime. Only 866 economic crime officers are currently employed across English and Welsh police forces, making up a mere 0.64% of the total police workforce, despite fraud comprising 40% of all crime.
A Freedom of Information request revealed that just 6% of reports made to Action Fraud—the national fraud reporting centre—are passed on to police for investigation. Some police forces have no officers dedicated specifically to fraud investigations, further hampering efforts to tackle the problem.
Surveys of police officers and staff reveal deep concerns: 88% believe there are insufficient resources to combat fraud effectively, and 51% feel officers lack the necessary skills to investigate these crimes. Additionally, 41% perceive fraud as a low priority within their forces, and 37% are unclear about which agency should handle fraud cases1.
Calls for Reform: The Police Foundation’s Proposal
In response to these challenges, the Police Foundation has published a report titled “A ‘Victimless’ Crime? Why fraud policing needs a re-design”, arguing that the current fragmented local policing approach is ineffective. The think tank urges the creation of a national Crime Prevention Agency dedicated to tackling fraud, which would centralise expertise, resources, and enforcement powers to better address the growing threat1.
Murray Mackenzie, Virgin O2’s fraud lead, highlighted the gravity of the situation: “With overall fraud prosecutions declining despite a 33% increase in cases last year, the UK is struggling to effectively combat fraud, allowing criminals to operate with little chance of facing justice”.
Deputy Commissioner Nik Adams of the City of London Police, who coordinates economic and cyber crime nationally, acknowledged improvements but emphasised the need for sustainable resourcing: “The response to fraud has been improving. It’s not a matter of a poorly designed system; it’s about sustainably resourcing and enhancing the response to keep pace with this ever-evolving threat”.
Government Actions and Initiatives
The UK government has recognised the fraud challenge and launched several initiatives to improve prevention and enforcement. The Home Office’s Fraud Strategy, published in May 2023, aims to coordinate efforts across government, law enforcement, regulators, industry, and charities to tackle fraud more effectively.
In February 2024, the “Stop! Think Fraud” national campaign was launched to raise public awareness and provide clear advice on avoiding scams. This campaign is supported by law enforcement, technology firms, banks, and telecom companies.
To strengthen enforcement, the government has invested £100 million to enhance law enforcement capabilities and plans to recruit 100 additional investigators for the National Fraud Squad, a specialised unit focused on serious fraud cases. There are also plans to replace the Action Fraud reporting system to improve victim support and data sharing.
New legislation is set to come into force in September 2025, introducing a “failure to prevent fraud” offence for organisations, which will require companies to implement “reasonable procedures” to prevent fraud or face prosecution. The Serious Fraud Office (SFO) has also received additional funding to tackle complex fraud and corruption cases, though critics say the funding increase is insufficient given the scale of the problem.
Public Sector Fraud: A Parallel Challenge
Fraud against the public sector remains a significant concern. The Public Sector Fraud Authority (PSFA), established in 2022, is tasked with improving fraud prevention and recovery in government departments. Its 2024/25 delivery plan includes ambitious targets such as preventing and recovering £250 million in fraud and error through advanced data analytics and artificial intelligence.
Estimates indicate that between £39.8 billion and £58.5 billion of public money is lost annually to fraud and error, including tax and welfare fraud. The PSFA’s work focuses on improving performance, enforcement, fraud risk assessments, and building professional standards for fraud detection across government2.
The Road Ahead: Challenges and Opportunities
The UK’s fraud landscape is evolving rapidly, with criminals exploiting new technologies and organisational weaknesses. The current policing model, fragmented and underfunded, struggles to keep pace with these threats. The Police Foundation’s call for a national Crime Prevention Agency reflects growing consensus that a coordinated, well-resourced, and expert-led approach is essential.
Government initiatives such as increased funding, legislative reforms, and public awareness campaigns represent important steps forward. However, experts caution that without structural reform and sustained investment, the UK risks allowing fraud to continue growing unchecked, with devastating financial and social consequences.
This urgent call for a new UK anti-fraud watchdog comes as fraud surges to unprecedented levels, demanding a strategic overhaul of policing and prevention efforts to protect individuals, businesses, and public resources from increasingly sophisticated criminal activity.
