The value of reported UK fraud hit £2.3bn in 2023, more than double the £1.1bn recorded in 2022, according to accountancy firm BDO.

Last year also saw the second largest annual fraud value recorded by BDO in 20 years.

However, BDO also warned that the true level of fraud is likely to be “significantly higher”, as some organisations choose not to report the frauds they suffer. The latest Crime Survey for England and Wales revealed that fewer than one in seven fraud offences are reported to the police.

While the number of high value cases (over £50m) in BDO’s latest FraudTrack report increased by 60% in 2023, the total number of reported cases also climbed by 18% to a three-year high.

“We are not surprised by this increase in reported fraud numbers which is consistent with the surge in frauds that our forensic investigations teams are seeing on the ground,” said BDO forensic partner, Kaley Crossthwaite.

“Many people choose not to report fraud because of shame or embarrassment. Businesses are also reticent about coming forward because of fears around negative publicity, reputational damage, and a lack of faith that the authorities will take action.”

The factors behind the rise include the large increase in online scams, phishing and system breaches, as well as significant spikes in authorised push payment (APP) transactions when fraudsters trick victims into transferring money to them.

BDO also highlighted in online fraud factories or cyberfraud centres as another “concerning development”, amid reports of hundreds of thousands of individuals being trafficked to work for crime syndicates. Estimates recently showed that such fraud factories are generating billions of dollars in revenue.

Crossthwaite added: “While we hope the introduction of the Government’s Online Fraud Charter will encourage the technology sector to narrow the opportunities for online fraud, the sad reality is that the fraudsters will be looking to stay one step ahead by exploiting new options like AI.

“All businesses are at risk, and many need to take urgent action to bolster their defences against fraud and financial crime. The ‘failure to prevent fraud’ offence introduced by the Economic Crime and Corporate Transparency Act 2023 may just provide the extra incentive to do so.”

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