London Daily

Focus on the big picture.
Sunday, Aug 30, 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
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
Bank of England Holds Interest Rate at 3.7% as Growth Stalls and Inflation Eases
UK Government Announces Electricity VAT Cut and £2 Bus Fare Cap
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
UK Unsecured Loan Defaults Reach Highest Level Since 2009
UK Energy Price Cap to Rise 4% to Three-Year High of £1,723
More Than 30 Britons Reported Missing After Deadly Nepal-Tibet Floods
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
Police Intensify Investigation Into Organised Crime-Linked Violence in Middlesbrough
UK Small Businesses Face Continued Revenue and Tax Pressures, Federation Says
M&G Real Estate Buys West Sussex Affordable Housing Portfolio for £29 Million
Royal Navy Warship HMS Tamar Visits Cambodia for Regional Security Engagement
UK Government Brings Forward Benefit Payments Ahead of August Bank Holiday
Four Men Plead Guilty to Arson Attack on Jewish Community Ambulances in North London
Ofgem Raises Great Britain’s Household Energy Price Cap by Four Percent From October
UK Government Rejects Green Party Call for Artificial Intelligence Datacentre Moratorium
Millions of UK Benefit Recipients Receive Payments Early Ahead of August Bank Holiday
UK Prime Minister Meets Northern Ireland Leaders in Belfast Over Budget Crisis
Crypto Tax Gains Reach One Point Three Eight Billion Pounds Among UK Investors, HMRC Data Shows
×