Financial services is UK's biggest loser to fraud

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...