London Daily

Focus on the big picture.
Sunday, Jun 21, 2026

Fraud epidemic 'is now national security threat'

Fraud epidemic 'is now national security threat'

Fraud has reached epidemic levels in the UK and should be seen as a national security issue, says think tank the Royal United Services Institute (RUSI).

The scale of credit card, identity and cyber-fraud makes it the most prevalent crime, costing up to £190bn a year.

UK intelligence agencies should play a greater role in responding, the RUSI argues in a report.

Policing should be better resourced, working more closely with the private sector, it adds.

The report argues that the scale of fraud against the private sector has an impact on the reputation of the UK as a place to do business.

Meanwhile, the amount lost by the government in fraudulent claims represents a "heist" on the public purse, undermining faith and trust, it says.

Disrupting society


It is the crime UK citizens are most likely to fall victim to, but the failures in responding risk undermining public confidence in the rule of law.

The Crime Survey for England and Wales found 3.7 million reported incidents in 2019-20 of members of the public being targeted by credit card, identity and cyber-fraud.

The private sector takes the biggest financial losses. One estimate from 2017 put the cost of fraud to businesses at £140bn.

Fraud against the public sector, including benefit, tax credit and student loan fraud, is estimated to cost £31-48bn a year, the upper figure larger than the UK's annual defence budget.

The losses go beyond the financial, the authors say.

"Fraud has the potential to disrupt society in multiple ways, by psychologically impacting individuals, undermining the viability of businesses, putting pressure on public services, fuelling organised crime and funding terrorism," they add.

'No-one's priority'


The report cites evidence that terrorist groups and lone actors turn to fraud in order to finance their activities.

In one case, eight supporters of the Islamic State group were convicted of defrauding UK pensioners out of more than £1m, which was alleged to be used in part to fund travel from the UK to Syria.

The men carried out a type of courier fraud in which they pretended to be police officers, telling victims that their bank accounts had been compromised and needed to be transferred.

But despite the growing scale of the problem, there is no national strategy for tackling the issue, while the police response is underfunded and lacking focus.

This makes fraud "everyone's problem but no-one's priority", according to the report, written by RUSI experts Helena Wood, Tom Keatinge, Keith Ditcham and Ardi Janjev.

The digitisation of everyday life - accelerated by Covid - has only increased the risks, with organised crime groups showing increased sophistication in their tactics.

'Responsibility vacuum'


"The UK has become a target destination for global fraudsters," the RUSI argues.

But the extent to which international criminals focus on the UK is hard to gauge, because intelligence agencies have not traditionally focused on the issue.

One senior fraud professional interviewed by the researchers said that despite 30 years of investigating fraud, they still had no idea what proportion of the threat emanated from overseas.

Classifying fraud as a national security issue would help ensure the right level of resourcing and prioritisation, the authors argue.

They also recommend more focused intelligence direction from the National Security Council, including greater tasking for GCHQ as well as the National Crime Agency to understand the issue.

They call for better information-sharing and use of data analytics, as well as more money and attention from police forces to address what they call a "responsibility vacuum".

Newsletter

Related Articles

0:00
0:00
Close
UK Government Tightens Procurement Rules to Prioritise National Security and Supply Chain Resilience
National Drought Group Reviews Water Supply Risks After Dry Spring and Ongoing Heatwave
Andy Burnham Faces Leadership Speculation After Weak Local Election Results for Labour
Charity Commission Appoints Interim Managers to Barnabas Aid Amid Financial Investigation
Government Awards £27 Million Leonardo UK Contract to Maintain Military Aircraft Fleet
Environment Agency Suspends Chichester Waste Site Permit Over Fire and Pollution Risks
Border Force Seizes Record Cannabis Shipment in Major UK Criminal Network Disruption
Lloyds Banking Group to Hire 300 Artificial Intelligence Specialists in Digital Expansion Push
UK Government Introduces Alcohol Monitoring Tags for 7,000 Offenders Ahead of Summer Sporting Season
Resident Doctors in England Prepare Vote on Government Pay and Working Conditions Offer
Police Scotland Investigates Suspected Anti-Muslim Attacks in Edinburgh Following Arrest
Met Office Issues Rare Amber Extreme Heat Warning Across Southern and Eastern England
UK Government Unveils Digital Homebuying Reforms to Cut Costs and Speed Up Property Transactions
Train Driver Dies and 89 Injured in Rail Collision Near Bedford as Safety Investigation Begins
Long-Term Economic and Political Effects of Brexit Continue to Shape UK Policymaking
Digital Disinformation Emerges as a Growing National Security Challenge in the United Kingdom
Britain's Dependence on Global Energy Routes Drives Push for More Resilient Supply Chains
Rising Energy Costs Continue to Threaten Britain's Cost-of-Living Recovery
Concerns Grow Over Far-Right Organizing and AI-Driven Online Radicalization in Britain
UK-Led Global Partnerships Conference Calls for Reform of International Development Finance
Middle East Tensions Continue to Weigh on UK Business Confidence
Reports of Middle East Peace Deal Ease Pressure on UK Energy Prices
UK Warns Middle East Conflict Could Worsen Global Food Insecurity
UK Economy Loses Momentum After Strong Start to 2026
Bank of England Holds Interest Rates at 3.75% Despite Easing Inflation
Brexit's Legacy Remains Deeply Divisive Ten Years After the UK Voted to Leave the European Union
International Anti-War Conference Opens in London as Debate Over European Rearmament Intensifies
UK Health Authorities Introduce Drug Price Concessions Amid Record NHS Medicine Shortages
Sir David Attenborough Supports Sherwood Forest Conservation Efforts After Loss of Major Oak
Aardman Animations Marks 50 Years With Major Exhibition in Bristol
Drax Cleared After Investigation Into Wood Pellet Sourcing Practices
Jaguar Land Rover Shifts Toward Hybrid Vehicle Production for US Export Strategy
UK Police Arrest Liberal Democrat MP Cameron Thomas on Suspicion of Assault
Health Concerns Grow Over Elevated Kidney Cancer Rates Near Lancashire PFAS Factory
Royal Navy F-35 Jets Conduct First NATO Air Warfare Exercise from Finnish Airspace
UK NHS Issues Price Concessions for Medicines Amid Severe Drug Shortages
Heathrow Third Runway Project Faces Sharp Downward Revision in Expected Economic Benefits
Amber Heat Warning Issued Across Parts of England and Wales as Temperatures Rise
Train Collision Near Bedford Disrupts UK Rail Network and Leaves Multiple Injured
Bank of England Data Suggests Brexit Has Reduced UK Economic Output by Around Six Percent
UK Borrowing Costs Hold Near 4.8 Percent as Political Uncertainty Fuels Market Pressure
Andy Burnham Emerges as Front-Runner to Succeed Keir Starmer After Landslide Makerfield Victory
Prime Minister Keir Starmer Faces Mounting Pressure to Resign After Labour By-Election Defeat in Makerfield
Payment Fraud Losses Reach £1.28 Billion and Raise National Security Concerns
Lending to Small Businesses Climbs to Highest Level Since Late 2024
Middle East Conflict Clouds UK Economic Recovery Despite Strong First-Quarter Growth
Bank of England Moves to Simplify Capital Rules for Smaller Lenders
UK Government Fast-Tracks National Security and Cyber Resilience Legislation
Ofcom Investigates Telegram Over Alleged Role in Organising Arson Attacks
MPs Press Fujitsu to Speed Compensation for Post Office Horizon Victims
×