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Business Frauds in the UK 2002-3
The Centre for Retail Research, Nottingham
The Centre's estimate of UK losses from fraud are based on research
reports, Government publications,trade sources and our own estimates.
The Centre's estimate for total fraud in the UK for 2002-3 is £46,735.3
million This is made up of:
| Frauds against business |
£20,667.0 M |
| Frauds against the Consumer
|
£7,487.5 M |
| Frauds against the
Government |
£18,580.8
M |
The major individual fraud is VAT 'missing trader' carousel fraud,
followed by counterfeiting and endownment assurance misselling.
The Home Office gives an estimate for UK fraud of £19 billion, which
is consistent with our Business estimate of £20.7 billion.
The Centre's estimate of the scale of fraud is greater than most
other estimates that you will find. This is not because we have
exaggerated the figures (the figures are all from reputable sources)
but because we have included figures which have only recently come
to light [eg smuggling and missing trader VAT fraud) and we have
also included frauds such as counterfeits and frauds against the
customer, which tend to be ignored when discussing fraud.
If you want to read about how easy it is to fall into a fraud
trap, read Anne McGuire's website - www.fraudaid.com/index.htm
For information about the main types of fraud, the Dyfed Powys Police
http://www.dyfed-powys.police.uk/fraud/business_fraud.shtml
Centre for Retail Research Estimates of Losses from Fraud 2003
| Frauds
Against Business |
£ millions |
| Crime
and Fraud against Retailers |
£2,750.0 |
| Credit
card fraud |
£425.0 |
| Other
fraud against banks |
£2,200.0 |
| Insurance
fraud |
£1,040.0 |
| West
African fraud, 419 fraud, standby letters of credit |
£2,500.0 |
| Pirated
(counterfeit) game software |
£1,500.0 |
| Pirated
cinema, music, home entertainment CD and video |
£1,052.0 |
| Other
pirated software |
£500.0 |
| Counterfeit
manufactured brands (merchandise) |
£6,180.0 |
| False
consumer claims against businesses |
£20.0 |
| Other
business fraud |
£2,500.0 |
| total
fraud against businesses |
£20,667.0 |
| |
|
| Frauds
Against the Consumer |
|
| Cowboy
traders, plumbers, gas, building, roof repair, drains,and tarmac
front drives |
£610.0 |
| Fraud
involving Charities |
£27.5 |
| Timeshare
fraud |
£50.0 |
| Pension
misselling |
£800.0 |
| Endowment
insurance misselling |
£6,000.0 |
| Total
Frauds Against the Consumer |
£7,487.5 |
| |
|
| Frauds
Against the Government |
|
| Housing
benefit fraud |
£500.0 |
| Social
Security Benefit fraud |
£2,000.0 |
| Fraud
against NHS |
£435.0 |
| Smuggled
alcohol, loss of duty |
£650.0 |
| Smuggled
tobacco |
£2,000.0 |
| VAT
losses, caused by missing trader/carousel fraud |
£11,100.0 |
| Loss
of revenue from counterfeit goods and software |
£1,699.0 |
| Fraud
in education, including TECs and ILAs |
£114.1 |
| Ministry
of Defence |
£82.7 |
| Frauds
Against the Government |
£18,580.8 |
| |
|
| TOTAL
FRAUDS |
£46,735.3 |
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