Previously only referenced publicly available information had been used, but the NFA calculation also included previously unpublished fraud loss figures and produced its own fraud estimates in areas where fraud data was unavailable.

Commissioner Mike Bowron of the City of London Police welcoming the report, said “the true cost of fraud could be much higher than previous estimates.

“It is vital that we ensure that the methodology used to measure the cost of fraud on the UK economy is as up to date and as comprehensive as is possible.

“We can then have confidence when using this data to help support and inform government policy in this important area of policing.”

Based predominantly on 2008 data, the current fraud loss figures were collated by a specialist team at the NFA. Using information gathered from a cross-section of public and private sector agencies, the public sector accounts for 58 per cent of the total figure, the private sector 31 per cent and fraud against individuals 12 per cent (4).

The report and overall fraud loss estimate will enable the NFA and Government to develop clearer priorities to prevent, detect and deter fraudsters and identify those areas of fraud that cause the most harm to the UK economy, to tackle it more effectively.

CEO of the NFA Dr Bernard Herdan said “Reducing the cost of fraud is important but even more significantly I want to stop more people from becoming victims. I have seen firsthand the devastating effects fraud can have. It destroys lives and livelihoods.”

The NFA, the Government’s strategic lead agency on fraud, has also recently launched Action Fraud, the UK’s first national fraud reporting centre. The service is a single point of contact for fraud victims, where they can both report a fraud and seek guidance and advice.

For more information about Action Fraud and the NFA, please visit www.actionfraud.org.uk.