A new report by think tank The Police Foundation has called for a major overhaul of how law enforcement deals with fraud.
Fraud now makes up around 40% of all crime, with 4.1 million incidents estimated in the year up to December 2024 (according to the annual Crime Survey for England and Wales) – up a third on the previous year.
A total of 1,214,639 fraud reports were made to police in the year to March 2024, of which only 3,641 ended with someone being charged with a crime.
The Police Foundation’s report calls for a major reform, including the creation of a UK Crime Prevention Agency and a national fraud policing body.
Being defrauded can take a toll not just financially, but emotionally. To better understand the psychological effects of fraud, we spoke with experts who shared common mental health impacts and advice on the healing process.
1. Anxiety
Anxiety is one of the common symptom impacting victims’ mental wellbeing.
A survey of 2,000 UK fraud victims, conducted in September 2024 on OnePoll for Lloyds Bank, found that nearly two-fifths (38%) of those who have fallen victim to fraud in the last one to six months experienced panic attacks.Furthermore, a quarter (25%) of those surveyed said they still struggled to sleep at night, six months to a year on.
“People can also feel very vulnerable and anxious afterwards – particularly those who shared a range of personal information with the scammer,” explains Sarah Lenette, financial crime specialist at Starling Bank. “Victims may feel a lower sense of security, or worry that this information could be used against them and leave them exposed to future scams or even other types of crimes if the scammers have their address.”
2. Shame
Lloyds’ research also showed that after a year, many victims felt ashamed and disappointed (21%).
Outside the survey, fraud victim Abbie Blyth spoke to Lloyds about her personal experience of being scammed. She responded to a call from a scammer, posing as her business’ bank account provider and during the call, she unknowingly provided access to her business’ bank account, which saw her lose thousands of pounds.
“The immediate guilt, shame, and feeling of being a complete failure, was the worst experience of my life,” reflects Blyth. “I was too embarrassed to tell anyone around me.”
3. Anger
Marisha Wallace, who also shared her personal experience of fraud with Lloyds, fell victim to fraud after meeting someone via a dating app. The person, who claimed to work in finance as a broker specialising in investments, later scammed her out of £60,000, leaving her feeling angry and ashamed.“At first, I was just angry, pleading for answers from the guy I thought I trusted,” shares Wallace. “I was in shock – because I thought this stuff just doesn’t happen to smart, successful people.”
4. Loss in trust
Lloyds’ survey also found that two to five years on, many victims still feel less trusting – whether that’s being more sceptical when interacting or using online platforms (17%), or being suspicious of people in their lives in general (15%).
“If you’ve been victim to a romance or impersonation scam, it can seriously affect the sense of trust you have in others,” recognises Lenette. “A real loss of trust and sense of violation can be created when these types of scams are uncovered and they can lead to feelings of anger, paranoia or even difficulty forming new relationships.”
Victims of scams can take months or even years to fully recover, but here are some tips on how to start that healing journey…
Report it
“It’s crucial to not let these feelings prevent you from reporting the crime to your bank and to Action Fraud immediately, and you may also feel more secure knowing that these organisations are here to help you,” says Lenette.
Talk about your experience
“A key way to heal from being scammed is to speak to the people in your life about it,” highlights Lenette. “You only have to look at the news these days to see examples of people of all ages and walks of life being scammed.
“Sharing your experiences you can feel less alone, and help educate others on the importance of keeping vigilant.”
Reach out to specialist charities and organisations
“Beyond your friends and family, it’s also worth reaching out to charities like Victim Support, who provide specialist support to victims of all sorts of crimes,” suggests Lenette. “Some police forces also even offer support groups for victims of fraud.”
Be proactive to avoid future scams
“Think about the proactive steps you can take to reduce your chances of being scammed in future,” advises Lenette. “You can take a look at Action Fraud’s website, where you can learn about a range of scams and common manipulative techniques these fraudsters use.”
Update passwords
“I’d also recommend immediately updating any passwords that may have been shared with the scammers,” recommends Lenette. “Also, ensure your devices have up-to-date security software, and keep an eye on your credit file to make sure that your personal information isn’t used to apply for accounts in your name.
“This can help victims to feel more in control of their circumstances – and can be a baby step in rebuilding their confidence.”
