Fraud fightback ramps up as new online crime squad targets scam gangs

Efforts to confront the gangs behind online fraud are intensifying, with investigators targeting everything from cryptocurrency investment scams to underground services that helped criminals defeat banking security, as the authorities seek to get a grip on one of the country's most common crimes.

Fraud now accounts for a substantial share of all crime in England and Wales, much of it enabled by technology and orchestrated by organised groups operating across borders. A new Online Crime Centre has been established to bring together specialists from government, policing, intelligence agencies, banks, mobile networks and major technology firms.

The approach reflects a recognition that fraud cannot be tackled by police alone, and that disrupting the infrastructure used by scammers requires close co-operation with the private sector.

Targeting the enablers

Investigators have increasingly focused on the services and tools that make fraud possible. In one case, operators of an underground subscription service that helped criminals obtain victims' one-time security codes were prosecuted, exposing how cyber criminals bypass the safeguards meant to protect online accounts.

That service had allowed thousands of criminals to target tens of thousands of victims, intercepting the codes used in multi-factor authentication on banking and other accounts. The case illustrated how a single piece of criminal infrastructure can underpin a vast number of frauds.

“Fraud is now one of the most common crimes in the country, and tackling it means disrupting the criminal services that make it possible.”

Cryptocurrency in the crosshairs

Cryptocurrency fraud has become a major focus, with an internationally co-ordinated operation led by the National Crime Agency freezing millions of dollars in suspected criminal proceeds and identifying tens of thousands of victims across several countries.

The operation targeted a technique in which victims are tricked into granting criminals access to their digital wallets, often as part of bogus investment schemes. Individual victims were found to have lost tens of thousands of pounds, underlining the devastating financial impact of such scams.

A public-private response

The creation of the Online Crime Centre is intended to pool expertise and data so that scams can be detected and disrupted more quickly. Banks, telecoms providers and technology companies hold information that can help identify fraudulent activity and shut it down.

Officials argue that combining law enforcement powers with the reach of the private sector offers the best chance of staying ahead of fast-moving criminal networks, many of which operate from overseas and exploit gaps between jurisdictions.

• A new Online Crime Centre unites police, intelligence agencies, banks and tech firms.
• Operators of a service that intercepted victims' security codes were prosecuted.
• An NCA-led international operation froze millions in suspected criminal proceeds.
• Tens of thousands of cryptocurrency fraud victims were identified across several countries.
• Fraud makes up a substantial share of all recorded crime in England and Wales.

Background

Fraud has grown into one of the defining crime challenges of the era, driven by the migration of daily life online and by criminal groups that treat scamming as an industrial enterprise. Much of the activity is committed remotely, making investigation and recovery of funds difficult.

Successive governments and law enforcement bodies have promised to do more, and the latest measures emphasise prevention and disruption alongside prosecution, seeking to dismantle the systems that allow fraud to flourish rather than pursuing offenders one at a time.

What happens next

The authorities will be judged on whether the new structures translate into fewer victims and more disruption of the gangs responsible. Investigators are expected to pursue further operations against fraud infrastructure, while consumers are urged to remain alert to scams and to report fraud when it occurs.