BDO’s FraudTrack report: Money laundering surges over fraud levels

BDO’s research found that money laundering cases totalled £337m last year, representing 61% of the total 2024 reported value of fraud and economic crime, while the average value of these cases was £19.84 million, a 10-fold rise on the £1.96 million average value recorded in the previous year.

Overall, the value of reported fraud and economic crime in the UK fell to £550m last year, down from £2.3bn in 2023 amid a 63% drop in high-value fraud cases. However, the overall number of fraud cases over the last five years has remained steady.

The fall in fraud values broadly follows the five-year downward trend in reported fraud, despite a spike in 2021 when reported losses jumped to more than £10bn during the period affected by the COVID pandemic. 

While money laundering represented the highest number of frauds by value, ‘non-corporate fraud’ such as phishing scams and identity theft were the most common fraud type by number, representing 41% of fraud cases reported in 2024. This is the second highest count of non-corporate frauds recorded since 2019.

Looking across different industry sectors, the retail trade was most vulnerable to fraud, accounting for almost half (49%) of fraud by value in 2024. This was followed by fraud affecting the public sector.

By region, London and the South-East accounted for more than three quarters (79%) of total reported fraud value. This was followed by the North West (5%) and the Midlands (4%).

Statistics can only ever provide a partial picture of the scale of the problem given that it is widely accepted that fraud remains vastly under reported across the broader economy.

There are some signs of optimism in our data – notably the decline in overall reported fraud values. However, the high prevalence of money laundering is particularly troubling. Indeed, the National Crime Agency’s latest strategic assessment suggests that over £100bn could be being laundered through the UK each year. Fraud trends are certainly something businesses should pay close attention to given that, from September this year, the Economic Crime and Corporate Transparency Act introduces a new corporate criminal offence for failing to prevent fraud.

While some organisations have taken proactive steps to enhance their fraud risk management strategies, others are still underprepared and will need to take urgent action to ensure they are compliant.

The report also highlighted the growing threats posed by the rapid development of AI technology, such as voice cloning, and the prevalence of ‘fraud farms’ linked to organised crime which use fraud-enabling technology to launch mass attacks on individuals via email and social media.

Fraudsters are embracing AI technology at pace to increase the scale and success of their schemes. While this is posing new and dangerous threats, technology is also proving to be a vital tool in the armoury of the anti-fraud community to help identify and disrupt fraud attempts at source. 

As a Gen Z presenting to a senior partner, there’s going to be an age gap. ‘Boomers’ (born between 1946 and 1964) or a Gen X (born between 1965 and 1980) aren’t the same as you. This isn’t about who’s ‘right’ or ‘wrong,’ it’s recognising differences, appreciating them and finding ways to address them to achieve the outcome you desire.

Take communication styles – Boomers and Gen X appreciate face to face communication, telephone calls and in person meetings – less text and video. That doesn’t mean they don’t use those medium, but they’d appreciate if you didn’t make it your default. And, if you are meeting in person, then eye contact and handshakes matter, even if they don’t to you. A good handshake should be firm, make ‘web’ contact (that’s the skin between your thumb and your first finger and theirs), with your elbow bent to allow movement and, importantly, with good direct eye contact and a smile. If you’re in any doubt about how good your handshake is, practice, your senior partners will appreciate it.

It's common for Gen Z to feel more confident speaking behind the technology and less confident in person. Research shows that over 75% of the population suffer from glossophobia – a fear of public speaking – with higher rates recorded in younger people and women. And if you recognise in yourself a desire to get things right, perhaps perfectionism and a need to over-achieve, your glossophobia is likely to be amplified.  

Think about your audience first and what they need, not just what you want to say. This is true whether it’s a senior partner or anyone else. Consider what’s important to them; what’s bleeping on their radar. What are they measured on? What do they have to deliver? What might be concerning them, right now? Try and see things from their perspective and align your presentation to their needs. Remember, it’s not about you, it’s about them.

Be clear what you want the outcome of your presentation to be. What do you want your senior partner to go away thinking, feeling, saying, doing or knowing? And write it down.

Focus on the two or three key points you must make to lead your audience to those outcomes and stick to them. Less is more. You will come across as professional and more confident when you keep your message short. They want to know that you’ve considered your points carefully and done your preparation.

Video your presentation and listen to what you actually say. Strip out any jargon or slang. You may be able to rizz them up, but best not to say so. And sick to a senior partner means being ill, nothing else. Check for ‘filler’ words that clog up your speech – the ‘like,’ ‘basically,’ ‘obviously’ - and take them out. I call these ‘dog words,’ they follow you around. Replace them with a pause and listen to how much more credible you sound. I’ve never met a senior partner who appreciates ‘like’ every other word.

If using slides then design them as visual aids to help your audience, not prompts to help you remember what you’re supposed to say. Chunk your presentation down to two or three key points and you can speak without notes (if you rehearse). They’ll like that. Be aware that Boomers and Gen X see having a phone in your hand as strange when presenting, even if that doesn’t seem odd to you.

Finally, the tricky issue of dress code. It’s not true that every senior partner expects you to be ‘booted and suited’ or very formal, but they do expect a certain ‘professionalism’ – a shirt that’s pressed, socks that match, a jacket that’s not rumpled, tidy and well-kept hair (and facial hair) and, don’t shoot the messenger on this, if you have tattoos, keep them out of sight.

If you keep in mind that good communication achieves the outcome you desire, then it makes sense to adapt and flex to the needs of your audience, whoever they may be. If your career, reputation and long-term success is important to you, it’s worth doing. Because, before you know it, you’ll be a senior partner with a whole new generation of Gen xxx presenting to you. And guess what, they’ll be things you appreciate and things you just don’t…