Financial services is UK's biggest loser to fraud

Laura Miller
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Financial services loses more to fraud each year than any other private sector industry in the UK, according to the National Fraud Authority (NFA).

Fraud costs the financial services industry £3.8bn a year, the NFA figures estimate, accounting for almost half of all the £9.3bn private sector fraud. In insurance, fraud cost the industry £2.08bn during 2008, though these losses only apply to the general insurance market as undetected fraud in long-term insurance is believed to be very low, the NFA data suggests. However, the ABI believes the industry may have lost a further £1.9bn in undetected fraud during 2008, up 24% since 2006. In the mortgage sector the NFA found a culture of underreporting losses, with lenders suggesting m...

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