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The UK Ministry of Defense (MoD) has recovered less than half of its anti-fraud expenditures over the past four years, despite a potential annual fraud exposure of up to £1.5 billion ($2 billion), according to the National Audit Office (NAO). The report highlights issues such as fragmented structures and a lack of trust between counter-fraud and police teams as significant barriers to effective fraud management.

The MoD reported a return of only £0.48 (£0.66) for every £1 ($1.37) spent on counter-fraud efforts from 2021-2022 to 2024-2025, falling short of the government's expectation of £3 ($4.12) in savings for each £1 spent. The NAO recommends that the MoD establish a department-wide objective to minimize fraud losses and improve case triaging to enhance fraud prevention and recovery efforts, especially as the UK aims to increase defense spending to 2.5% of GDP by 2027.