Financial crime often brings to mind images of billion-dollar bank scandals or offshore tax havens. But the truth is, financial crime creeps into our everyday lives far more often, and far more quietly, than we realise. From the products we buy to the calls we receive, financial crime is hidden in plain sight.
Here are five everyday risks you might not have noticed:
1. The Scam Call You Almost Answered
If you’ve ever received a suspicious call claiming to be from your bank or the tax office, you’ve already brushed up against one of the most common forms of financial crime: social engineering fraud. According to the UK Finance Annual Fraud Report 2024, a total of £1.17 billion was stolen through fraud in the UK during 2023, reflecting a 4% decrease compared to 2022. Within this total, Authorised Push Payment (APP) fraud losses amounted to £459.7 million, marking a 5% reduction from the previous year. Notably, purchase scams emerged as the most prevalent type of APP fraud, accounting for over 156,000 cases and resulting in losses of £85.9 million. Criminal networks use industrial-scale call centres to impersonate banks, police, and government agencies, tricking victims into sending money directly into criminals’ accounts.
Real case: In 2021, “Operation Elaborate”, the UK’s largest ever anti-fraud operation, dismantled a call centre network that had targeted over 70,000 potential victims with fake banking calls.
2. The “Designer” Bag at a Bargain Price
A counterfeit handbag or a pair of fake trainers might seem like a harmless bargain. But the global counterfeit trade, worth over $500 billion a year, is closely linked to organised crime, human trafficking, and even terrorist financing. Buying fake goods fuels criminal networks that also engage in far more serious offences, from drug smuggling to money laundering.
Real case: Europol investigations have revealed that the Italian Camorra mafia has deep involvement in counterfeit goods trafficking across Europe, using the profits to fund more dangerous organised crime activities.
3. The Charity You Donate To
After a natural disaster or humanitarian crisis, it’s natural to want to help. But fraudsters exploit these moments of goodwill by setting up fake charities that divert donations into criminal operations. The Financial Action Task Force (FATF) highlights the non-profit sector as a known risk area for money laundering and terrorist financing.
4. The Secondhand Electronics you Buy
Buying used phones, laptops, or tablets can save money, but second-hand electronics are a growing channel for laundering stolen goods and cybercrime proceeds. Devices bought with stolen credit cards, hacked accounts, or proceeds from fraud often end up in online marketplaces, pawn shops, or even legitimate-looking resellers. Criminals use the resale of electronics to quickly “clean” stolen money while making tracing assets far more difficult. Moreover, second-hand devices can be preloaded with malware, creating further security risks for unsuspecting buyers.
5. The Apartment You Rent for a Weekend
Short-term rental platforms have been exploited by criminals to launder illicit funds. Criminals book properties using illicitly obtained money, creating the appearance of legitimate business transactions. In some cases, fake listings have been used to move money without ever hosting a guest.
Kanchelli Iddrisu – Senior Research Consultant