UK fraud losses rise 8% to more than £1.3B in 2021 amid pandemic upheavals

U.K. losses to fraud and scams jumped 8% to more than £1.3 billion in 2021, partly because of criminals taking advantage of disruptions caused by the pandemic, according to UK Finance.

Authorized fraud, in which people are tricked into sending money to criminals, surged 39% to £583.2 million, the trade group said in its 2021 fraud report. Unauthorized fraud, which happens without the victim's knowledge, fell 7% to £730.4 million aided by new technology.

Criminal gangs hoodwinked people into giving them money by impersonating organizations such as the National Health Service, banks or government departments in phone calls, text messages or online. The growth of this type of fraud shows that sectors outside finance need to address the issue, and that the government should grant new powers on information sharing and tracking stolen money in the upcoming Economic Crime and Corporate Transparency Bill, Katy Worobec, UK Finance's managing director of economic crime, said in a press release.

A total of £271.2 million was returned to victims of authorized fraud, representing 47% of the total, UK Finance said.