Last year Fraud losses cost the UK £190+ Billion.
*figures provided by the Annual Fraud Investigation report produced by the UK Fraud Costs Measurement Committee (UFCMC)
Let’s put that into some perspective. That amount is significantly higher than the UK spends on healthcare and defence combined. It is larger than the annual cost of all welfare payments excluding pensions.
Breaking it down into more digestible figures equates to £3,900 per adult in the UK or, £10,000 per family home, or £6,000 per second.
Who’s at risk?
The bulk of the £190 billion hits the private sector with estimates around the £140+ billion mark. £40 billion then hits the public sector which although significantly lower makes up 5% of the annual spend. The remaining £10+ billion is made up of card fraud, identity fraud etc. The simple truth of the situation is everyone is being affected by fraud, every business purchase, every individual purchase gets effected by fraud.
How is it happening?
One of the ways fraud is being committed is through illegitimate claims. Roughly 350 fraudulent claims are submitted every day! That’s 127,750 claims per year! With insurance companies paying out £1.3+ billion, how much is that driving up insurance premiums?
What can we do?
By beginning to realise the size and scale fraudulent activity, how it’s affecting your business, we can build appropriate resources into business plans. By accepting the potential cost of fraud as higher than the cost of preventing fraudulent activity, and choosing to invest in the correct places, we can ultimately reduce risk of fraud, lower insurance premiums, and begin reducing the £190+ billion the UK economy is currently losing.
Technology – The answer to all our problems.
Using technology to quickly analyse an individual claim, assessing the likelihood it is fraudulent, based on the details captured is relatively easy. Comparing the information found with information already in the historic claims to identify any risks. Producing Heatmaps to show high risk areas, where multiple claims are coming from, more volume more risk.
Luckily this software is available! Working in the technology arm of dwf llp, we have industry experts in claims management, and software development as you might expect in a technology company. The real advantage comes from the dwf llp knowledge base, with 40+ years of experience litigating claims, and a complete database, the ability to analyse your claims against 40 years worth of cases we can give accurate scores to the potential your company is at risk to fraudulent claims.
Utilising technology effectively guarantees the more efficient method in Fraud prevention. To discuss this in more detail please do message me on LinkedIn or email me at Joshua.email@example.com
It would be good to hear some of your thoughts…
To read the full AFI report access it through this link;