Financial Fraud Hotspots: London Tops List of UK Cities with 16,149 Cases in 2024

The rise in digital transactions and evolving fraud techniques have led to a significant increase in financial crime across the UK, with cases surging dramatically over the past year. Every UK city and town is feeling the impact of this growing threat, but which locations are experiencing the highest rates of financial crime?

Using FOI requests made to police agencies across the country, Weightmans has analysed data related to financial crimes in the UK to identify the locations with the highest incidence of financial fraud and the most common offences.

A Surge in Financial Fraud Queries

According to ONS data for the year ending June 2023, there were 3.3 million fraud offences committed in the UK. However, this issue is likely to be on a much larger scale as  its estimate that fewer than one in seven fraud offences were reported to the police or Action Fraud. 

Between January 2023 and April 2024, the Citizens Advice Bureau reported over 46,000 queries concerning financial fraud, the highest of these being Identity Fraud, with 2,321 queries. 

In 2023, UK Finance reported a staggering £1.17 billion loss due to various fraud activities​. This highlights the significant impact financial crimes have on individuals and businesses alike.

Financial Crime Across UK by area

Weightmans submitted Freedom of Information requests to police authorities across the UK, seeking detailed information on the number of reported financial crimes. By analysing the data obtained through these requests, we identified and mapped the major financial crime hotspots in the nation's capitals. 

London, unsurprisingly, leads the way, with the capital city recording a staggering 309,281 offences over the past four years, and over 16,149 cases reported in 2024 already. This underscores the persistent issue of fraud and its significant impact on urban centres.

The prevalence of online shopping and auction fraud significantly contributed to London's high figures, with more than 50,611 cases reported between 2020 and 2024, underscoring the need for heightened vigilance and improved cybersecurity measures.

Nottinghamshire ranks in second with 14,263 financial crimes . The most common fraud type in this region involved cheques, plastic cards, and online bank accounts, with 1754 reported cases of this type of fraud.

Cities with the Lowest Prevalence of Financial Crime

With only 83 reported offences, Ipswich has the lowest prevalence of financial crime among the listed cities, indicating a relatively secure environment against such fraudulent activities.

Bedford reported 134 financial crime offences, making it one of the safer cities in terms of financial fraud.

Common Types of Financial Fraud

While many crimes were reported, some were more common than others. The team at Weightmans have detailed which were the most commonly reported, and what these look like, to ensure individuals are vigilant in future.

Online Shopping and Auctions (50,611 cases): This type of fraud involves deceptive practices on e-commerce platforms and auction sites, where fraudsters create fake online stores or auction listings to trick consumers into paying for non-existent or counterfeit goods. Victims often lose money through these transactions and may also inadvertently share personal and financial information, leading to further fraud or identity theft.

Cheque, Plastic Card & Online Bank Accounts (2,844 cases total): This category covers fraud involving stolen or counterfeit cheques, unauthorised use of debit/credit cards, and breaches of online banking accounts. Fraudsters may use stolen card information for unauthorised purchases or gain access to online banking accounts to transfer funds illegally. Victims face significant financial losses and the added burden of resolving unauthorised transactions and securing their accounts.

Blackmail (866 cases): Blackmail involves extortion through threats to reveal embarrassing or damaging information unless a ransom is paid. In the digital age, this can also include threats to release sensitive data obtained through hacking. Victims suffer financial loss, severe emotional distress, and potential reputational damage, making blackmail a particularly damaging form of fraud.

Legal Expert Tips for Preventing Financial Fraud

As financial fraud continues to rise across UK cities, individuals must take proactive steps to safeguard their personal and financial information. Weightmans share expert-backed recommendations to protect against the most common types of fraud observed in 2024.

1. Regularly Review Financial Statements

Regularly scrutinise your bank and credit card statements for any unauthorised transactions. Immediate detection can help mitigate further fraudulent activity. Set up account alerts with your financial institutions to receive notifications of any suspicious activity.

2. Protect Your Personal Information

Legally, you are entitled to protect your data. Avoid sharing sensitive information online or over the phone unless necessary and you can verify the recipient's legitimacy. Shred documents containing personal information before disposal and use secure passwords and two-factor authentication for online accounts.

3. Stay Informed About Scams

Stay updated on the latest scams by following reports from organisations like Action Fraud and the Financial Conduct Authority. Knowledge of current fraud tactics can help you identify and avoid them. Subscribe to fraud alert services and educate yourself on common fraud schemes.

Steps if You Suspect You Are a Victim of Fraud

1. Immediate Reporting

Report the fraud to your bank or financial institution as soon as possible. Under UK law, they are required to investigate and take steps to protect your accounts. Contact Action Fraud, the UK's national fraud and cybercrime reporting centre. Reporting helps authorities track and combat fraud.

2. Document All Evidence

Keep detailed records of all transactions and communications related to the fraud. This documentation is crucial for any legal action or recovery efforts. Maintain copies of emails, bank statements, and any correspondence with your bank or law enforcement.

3. Seek Legal Advice

Consult a solicitor who specialises in fraud or financial crime. They can advise you on your rights, potential remedies, and the best course of action. Legal professionals can assist in recovering lost funds, guiding you through the legal process, and representing you in any necessary proceedings.

4. Fraud Alerts and Identity Protection

Place a 'protective registration' with Cifas to help protect your identity from further fraudulent use. This can make it more challenging for fraudsters to open new accounts in your name. Notify credit reference agencies like Experian, Equifax, and TransUnion to place a fraud alert on your file, enhancing your protection against identity theft.

5. Stay Proactive and Vigilant

Regularly update your knowledge of legal protections and fraud prevention strategies. Utilise resources provided by the FCA, Citizens Advice, and other reputable organisations. Continuously monitor your financial accounts and personal information, and be cautious of unsolicited requests for your details.

"As financial fraud continues to rise across UK cities, individuals must take proactive steps to safeguard their personal and financial information," says Michael Balmer, Partner and head of corporate and business crime at Weightmans. "The significant increase in cases highlights the necessity for improved security measures. Consumers should be vigilant about their online activities, regularly monitor their financial accounts, and stay informed about the latest fraud tactics. Protecting personal information and promptly reporting any suspicious activities are crucial in mitigating the risk of fraud. By adopting these practices, individuals can better protect themselves against the growing threat of financial crime."