The current government, and political parties, love to talk about growth. But from motorhomes bought for cash, to Stamp Duty swerving, five million pound security staff bills to dodging Council Tax on houseboats, the political class are potentially helping to grow fraud by example. Although they all deny any wrongdoing naturally and no charges are ever brought, in case after case of unaudited donations, dodgy London rentals at mates rates, general expenses, hiring partners, friends, lovers etc – the list goes on.
All of it, the two-tier attitudes that underpin investigations and low key action by Police, CPS, HMRC, govt auditors and so on breeds a culture of corruption and fraud across the political divide. Regular people are hammered by HMRC for the slightest error, whilst closed door deals are agreed for celebs, politicians and big companies. So yes, people think, why not have a go? Insurers can expect even more fake crash car claims, travel sickness or staged property losses as citizens follow the path blazed so successfully by lawmakers themselves.
Here’s the word on how chancing your arm on fraud is becoming Britain’s leading growth sector;
The overall value of reported fraud and economic crime increased by almost 900% to £5.5bn in 2025, up from £550m in 2024, according to BDO’s latest FraudTrack report. The increase was due largely to five high value cases.
Money laundering cases accounted for the lion’s share of the total at £4.9bn, including a £4.8bn cryptocurrency money laundering scheme.
Frauds perpetrated by individuals contributed a further £207 million, while management fraud rose from £11m in 2024 to £195m in 2025, signalling a growing vulnerability within organisational governance and oversight.
Collectively, these three fraud and economic crime types accounted for 97% of the total value of reported fraud in 2025.
The figures come from BDO’s latest annual FraudTrack report which analysed reported UK fraud and economic crime cases valued at £50,000 and above between 1 December 2024 to 30 November 2025.
The report found that the threat of fraud is not diminishing, it is adapting. While cutting-edge AI tools are being harnessed to enhance fraud detection, AI-enabled frauds are a key concern for the future. Among them, the increasing use of deepfakes – AI-generated audio, video, images, and text that closely mimic real individuals – which can lead to executive impersonation, authorisation fraud and misleading communications.
While individuals are the largest group of victims, accounting for £4.9bn in reported losses, many sectors have also been impacted. The finance and insurance sector experienced reported losses of £171m, while the public administration sector reported £138m in losses and the professional, scientific and technical services sector recorded £69m in reported losses.
The report reveals a geographical spread of fraud and economic crime, with London and the South East dominating as the UK’s primary fraud hotspot, accounting for more than a quarter of all reported cases and over 90% of total reported value.
Yorkshire rose from eighth place in 2024 (by value) to second in 2025, reporting nearly £200 million in losses. The Midlands and North West each reported values close to £110 million, and Scotland completes the top five, with total reported losses approaching £20 million.
Earlier this year, the Government announced a three-year £250m strategy to combat fraud, including plans for a new Online Crime Centre, combining expertise from across the government, police, intelligence agencies, banks, mobile networks and major tech firms, working to tackle fraud together and protect the public.
A recent Crime Survey of England and Wales found that around 1 in 14 adults had become a victim of fraud while the Economic Crime Survey revealed 1 in 4 businesses had been affected.
Stephen Peters, BDO partner and Head of Investigations said: “Fraud is becoming more technologically enabled, more adaptive and more resilient. Yet despite significant advances in detection and prevention, billions of pounds continue to be lost each year.
“If regulatory and legal frameworks are to remain effective, they must evolve at pace. Renewed focus, modernised enforcement tools and genuine cross-sector collaboration will be required. Without sustained reform, the financial and societal costs will continue to rise.”
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