London Daily

Focus on the big picture.
Tuesday, Feb 17, 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
‘The only thing illegal is Keir Starmer handing these islands to a country like Mauritius!’
JD Vance says Germany is “killing itself” by taking in millions of fake asylum seekers from culturally incompatible nations.
UK Markets Signal Opportunity as Starmer Confronts Intensifying Political Pressure
Trump Criticises Newsom’s UK Climate Pact, Defends Federal Authority Over Foreign Engagements
UK’s Top Prosecutor Says ‘No One Is Above the Law’ as Police Review Claims Against Ex-Prince Andrew
Businessman Adam Brooks weighs in on the reports that the US is set to help Hamit Coskun flee the UK, over free speech concerns
U.S. Attorney General Pam Bondi Releases 3.5 Million Pages of Jeffrey Epstein Case Files
US Secretary of State Marco Rubio Comment on European allies report blaming Russia for killing late Kremlin critic Alexei Navalny using toxin from poison dart frogs
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
UK Quran Burner May Receive Asylum in the US Amid Legal Challenges
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Prince William Meets Saudi Crown Prince as Epstein-Andrew Fallout Casts Shadow
Starmer Calls for Renewed ‘Hard Power’ Investment at European Security Summit
UK Police Establish National Taskforce to Handle Domestic Epstein-Linked Allegations
UK Court Rules Ban on Palestine Action Unlawful in Major Free Speech Test
UK Faces Prospect of Net Migration Turning Negative as Economic Impact Looms
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
Pentagon Reviews Anthropic Partnership After Claude AI Reportedly Used in Operation Targeting Nicolás Maduro
President Donald Trump and Hip-Hop’s Political Realignment: Pardons, Public Endorsements, and the Struggle Over Cultural Influence
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
Goldman Sachs and DP World Executive Resignations: Elite-Reputation Risk and Corporate Governance Fallout From the Epstein Disclosures
‘Amelia’: The UK Government’s Anti-Extremism Game Villain Who Became a Protest Symbol
Peter Mandelson Asked to Testify Before US Congress Over Jeffrey Epstein Links
Walmart's Earnings and UK Economic Data Highlight Upcoming Financial Trends
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
SpaceX's New Vision: Lunar City Takes Precedence Over Mars Colonization
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
Document Suggests Prince Andrew Shared UK Briefing on Afghan Investment Opportunities with Jeffrey Epstein
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
McDonald's Shortens Breakfast Hours in Australia Due to Egg Shortage
Heineken announces cut of 6,000 jobs due to declining beer demand
Beijing Brands UK Hong Kong Visa Expansion ‘Despicable and Reprehensible’ After Jimmy Lai Sentencing
Tesco Chief Warns UK Is ‘Sleepwalking’ Toward a Joblessness Crisis
Trump’s ‘Act of Great Stupidity’ Comment on UK Chagos Deal Reverberates Through Diplomacy and Strategy
New U.S. filings say Jeffrey Epstein repaid Les Wexner one hundred million dollars after theft allegation
Commerce Secretary Howard Lutnick acknowledges 2012 visit to Jeffrey Epstein’s private island as lawmakers scrutinise past ties
Helsing and Stark Defence loitering-munition drones and Germany’s race to industrialise battlefield autonomy
UK orders deletion of Courtsdesk court-data archive, reigniting the fight over who controls public justice records
UK Police Review Fresh Claims Involving Prince Andrew as Senior Royals Respond to Epstein Files
Keir Starmer’s Premiership Faces Unprecedented Strain as Epstein Fallout Deepens
Starmer Vows to Stay in Office as UK Government Faces Turmoil After Epstein Fallout
China and UK Signal Tentative Reset with Commitment to Steadier, Professionally Managed Relations
UK Confirms Imminent Increase in ETA Fee to £20 as Entry Rules Tighten
UK Signals Possible Seizure of Russia-Linked ‘Shadow Fleet’ Tanker in Escalation of Sanctions Enforcement
Epstein Scandal Piles Unprecedented Pressure on UK Prime Minister Keir Starmer’s Leadership
UK’s ‘Most Romantic Village’ Celebrates Valentine’s Day and Explores the Festival’s Rich History
The Implications of Expanding Voting Rights to Non-EU Foreign Residents in France
Ghislaine Maxwell to Testify Before US Congress on February 9
×