EXCLUSIVE: 'InAction Fraud' to finally be replaced from next month after years of delays

THE UK's "failed" scam reporting system Action Fraud is set to finally be axed within weeks, with a "soft launch" of its replacement due next month<Dec> following repeated delays after MPs branded it "not fit for purpose" and "failing victims."

The beleaguered system is set to be rebranded as "Report Fraud" with new technology that promises to speed up the process and also to collect evidence for potential police investigations.

The replacement has been dogged by setbacks after it was earmarked for the axe.

At the same time the number of estimated fraud offences in England and Wales has risen by a staggering 31 percent to 4.16 million in the year ending March 2025, compared to the previous 12 months.

The BBC is highlighting the growing threats from fraud and cyber crime all this week as part of its annual Scam Safe Week.

Action Fraud is the national organisation which takes reports of scams from the public before they are assessed by the National Fraud Intelligence Bureau (NFIB), before a small fraction of cases are passed to police to investigate.

In October 2022 a report published by MPs on the Justice Committee branded Action Fraud as "not fit for purpose," "understaffed and resourced" and "failing the needs of victims.

Six months later a Public Accounts Committee report said it was “seriously concerned that the failures of Action Fraud in supporting victims of fraud has earned it the nickname 'Inaction Fraud'”.

Replacing Action Fraud with the new system was a vital goal of the Government "Fraud Strategy" published more than two years ago in May 2023 and the following month City of London Police (CoLP), which oversees it, announced suppliers had been appointed with a planned launch date by April 2024.

It announced that Capita PLC had been appointed to operate the new system's contact centre, website and reporting tool, while PwC UK had been awarded a contract to provide improved technology services to the NFIB. 

It was then said the replacement would launch later in 2024, before a 2025 phased changeover was promised instead.

Now, CoLP, which will also oversee the new system, has confirmed there will be a soft launch of it in December, followed by a complete transition in January.

A CoLP spokesperson said: "The technology is in place, stakeholder engagement is being rolled out, and the new system will start live in December with a campaign stating that Action Fraud no longer exists.

"There will be a soft launch first with the bigger hard launch in January next year."

Asked if further delays could follow, she insisted everything was in place for the transition period to start next month.

She said: "There have been delays, but it is all good to go and it will be switched on at the start of December.

"December is not the right time for the hard launch, as it is a busy time, so January will be a better time with more space to breathe.

"We are doing a lot in the background. Action Fraud will stop over a phased period as staff are trained on the new system before it goes fully live and before victims have access to it.

"This will be a period of a month or so but there will never be a period where you cannot report fraud and all existing data will be migrated to the new system." 

Naomi Davis, who said there was no "action" after she reported a number of frauds to Action Fraud, said: "My feelings on Action Fraud still stand! Useless and very unhelpful at the time.

"What will their new system consist of? Hopefully they will employ actual humans with empathy towards those going through the stress of fraud.

"If they intend to use AI or infuriating chat bots to assist people, it's going to be yet another waste of time and victims will not get the help they need."

A woman who reported a romance fraud running into around £250,000 to Action Fraud, which led to no prosecution, welcomed it being scrapped, but was not convinced the new system will vastly improve things.

The woman, who did not want to be named, said: "As far as I am concerned, it is pointless reporting anything to Action Fraud and indeed to the police in general, as they don't really care. And it is highly unlikely that I will ever report crime ever again. What would be the point? Criminals have never had it so good." 

Earlier this year, the Crime Survey for England and Wales said fraud accounted for approximately 44 percent of all estimated crime in the year to the end of March 2025, an eight percent increase on the previous period.

There were 1.23 million fraud offences reported to the NFIB from Action Fraud, and other reporting systems, in the year ending March 2025, a one percent increase on the previous year.

But, just a fraction of these are investigated and end up in court.

In the year ending December 2024, there were 4,176 prosecutions leading to 3,521 convictions for fraud offences. 

In the year 2020/21, Action Fraud received 875,622 reports of fraud, but just 59,838 led to recorded outcomes for fraud cases referred for investigation, with just 6,900 (11.5 percent) reaching court.

It is hoped the replacement system will improve these figures.

It is said that the new service will make it easier to report fraud and cybercrime, update victims on what has happened with their report, including stating when reporting has aided others to be protected and significantly improve the speed and quality of information provided to law enforcement partners, boosting chances of successful prosecutions.

It also aims to protect more people and businesses from fraud through targeted advice on how to avoid the latest fraud threats.

This will include providing real time information to institutions and organisations who can take down fraudulent websites, activities and bank accounts which are known to be enabling criminal activity.

Reports made to the new service, as well as those made to other existing reporting tools CIFAS and UK Finance, will continue to be sent to the National Fraud Intelligence Bureau (NFIB), based within the CoLP, for analysis.

The NFIB is also being "enhanced significantly, using the latest technology and an increased workforce to manage the reports and case work incoming to the service."

New technology will automatically analyze and compare submitted evidence, allowing the NFIB to spot patterns and send intelligence packages to police.