Insurance

High levels of COVID-related fraud and cyber crime recorded

The UK’s police forces have recorded more than 6,000 significant cases of fraud and crime related to coronavirus over the last year, with over 416,000 individual reports made in London and many more suspected to go unreported.

 

Victims of coronavirus related crimes have lost a combined total of over £34.5 million since 1st March 2020, many of which have stemmed from Internet shopping scams, resulting in a loss of money and personal data breaches.*

 

Shopping related fraud was 42% higher during the first lockdown than for the preceding year, as scammers took advantage of the fact that shoppers were forced to make their purchases online – perhaps, for some, for the first time.

 

Charities have also been vulnerable to these targeted fraud attacks, with one in three reporting a cyber attack during the first ten months of the pandemic and some hackers going days without being detected by the organisations, allowing them to compromise email accounts and send false invoices to their clients.

 

Data from the City of London Police also shows an increase compared to 2019/20 in romance fraud (20%) being committed in the last 11 months.

 

With their co-ordinated efforts to tackle fraud, in 2020 the Dedicated Card and Payment Crime Unit has worked with social media platforms to take down over 700 accounts that were linked to fraudulent activity.

 

However, these figures may only be the tip of the iceberg.

 

The National Crime Agency estimates that only one in five fraud cases are reported to the police, and Cyber Helpline state that only a quarter of those who contact them regarding cyber related crimes also report the incidents to the police.

 

 

Are you and your business protected against cyber related crimes? Get in touch with us today to talk about what protection we can offer you.

 

 

*Source: Action Fraud team, BBC News

 

 

 

New and emerging risks and insurance trends in 2021

The effects of the global pandemic have been far reaching, with unexpected consequences for individuals and business owners.

 

Here are just some of the emerging risks and threats that have arisen within the insurance sector over the last 12 months.

 

Hot tub and garden accessory related claims

 

Last year, we saw a surge in hot tub installation, as the UK population were required to find new ways to spend their leisure time at home.

 

Due to lockdown restrictions, many households found they had leftover disposable income and a calendar free of any social commitments or travel plans.

 

As hot tub sales increased over this period, so too did the number of accidents and incidents happening at home, leading to the tripling of home insurance claims involving hot tubs last summer.

 

With an annual increase of 188% in relation to accidental damage claims, the value of claims vary from hundreds to more than £9,000.

 

In addition, claims for items dropped in or off hot tubs has also increased by 213%, with mobile phones being top of this list. There has also been a small number of claims for theft, with many cases having deflated spas stolen from people’s homes.

  

 

Bike thefts

 

Bike thefts have surged by 66% during the coronavirus pandemic compared to the preceding year, most notably in the capital, following a spike in bike sales.

 

Pedal bike related thefts accounted for 32% of all theft claims, compared to 14% the previous year.

 

South West London was notably the number one hotspot for bike related thefts, whilst other parts of the UK reporting higher figures included Edinburgh, Bristol and Southampton.

 

 

Cyber related crimes

 

Over the last year we have seen a surge in cyber-attacks targeting critical infrastructures, governments, organisations and end-users, most notably influenced by governmental announcements.

 

These techniques, while common, had never been observed in relation to an event of this magnitude, making this a unique trend that is expected to stick around in 2021.

 

The most notable pattern seen is that government announcements may actually accelerate cyber-crime, with fraudsters utilising pandemic related announcements and public information as bait to catch unsuspecting victims.

 

The increased uncertainty and anxiety created by the pandemic has also increased the likelihood of these attacks and crimes being successful, with warnings to the government, media and public to be cautious and aware as these coronavirus related announcements can give leverage to attackers.

 

Talk to us about our accidental damage, theft and cyber security insurance policies today.