Ref:35/07 March 6, 2007
ACPO report – The Nature, Extent and Economic Impact of

Embargoed until 10.30 on
Wednesday 7 March 2007

An Independent study reveals the true cost of fraud in the UK

Fraud is costing the UK economy a minimum of £13.9 billion a year, a specially commissioned report has revealed.

The findings of the report, researching the true cost of fraud, will be revealed to members of parliament this Wednesday (7 MARCH) when Mike Bowron, Commissioner of Police for the City of London & ACPO Lead for Economic Crime, together with the Attorney General, Lord Goldsmith, attend a parliamentary breakfast.

The report, commissioned by the Association of Chief Police Officers’ Economic Crime Portfolio Group, consisting of representatives from both public and private bodies, analysed key data drawn from global reports and national surveys to assess, as accurately as possible, the true economic cost of fraud in the UK.

Morgan Harris Burrows LLP compiled the report, which took a year to produce, in association with Professor Michael Levi of Cardiff University. The independent study provides a comprehensive breakdown of the various sub-sectors of fraud and conservatively estimates this to be in the region of £13.9 billion per year.

Mike Bowron, ACPO lead on Economic Crime and Commissioner of the City of London police, said:

“Professor Levi and his team have conservatively estimated that in 2005 fraud cost the UK £13.9 billion. But this figure excludes some major areas of criminality, such as income tax and EU fraud, where statistics are simply not available. Adding estimates for these into the mix, it is likely that fraud represents a £20 billion annual loss to the UK. To put this figure into perspective, such losses would pay for an additional 200,000 police officers or save every man, woman and child £330.00 per year.

“It used to be said ‘No one walks down the street in fear of being embezzled.’ Well increasingly they do. Whereas once the average Briton dreaded being burgled or having their car broken into, they are now worried about identity fraud, mass marketing scams and other forms of financial crime that have a serious impact on our lives. Long gone is the notion that fraud is a victimless crime."

The full report can be found under the policies section of this website

ENDS

Notes for Editors

• Mike Bowron will be available for pre-recorded interviews between 2pm and 3pm today (6 March). For interview requests please contact Ian Sales, City of London Police press office on 020 7601 2220.

• The full report will be available on the ACPO website www.acpo.police.uk from 10.30am on Wednesday 7th March 2007.

• The ACPO Press Office can be contacted via 020 7084 8946/47/48 or via 07803 903686 (out of office hours).

• Through a series of committees and working groups ACPO members, often in consultation with develop policy and guidance for the police service. The Association aims to assist chief officers in providing excellence in leadership of the service; to ensure a professional and ethical service is delivered to all communities; and to provide professional advice to Government. Police Authorities other organisations and individuals with an interest in policing issues.

• ACPO’s 312 members are police officers of Assistant Chief Constable rank (Commanders in the Metropolitan Police and City of London Police) and above, and senior police staff managers, in the 44 forces in England, Wales and Northern Ireland, plus national agencies such as NCIS and the National Crime Squad, and other forces such as British Transport Police and States of Jersey Police.