The true cost of ticketless rail travel: and what to do about it

There is no single reason people travel without a valid rail ticket. Mistakes and confusion are often as much to blame as deliberate fare evasion.

The proliferation of ticket types, zones and conditions can lead to honest mistakes among rail travellers. Passengers may have purchased a valid ticket, but for the wrong destination, route or fare type for the journey they are making. Forgotten or expired railcards are also a common factor. In some cases, broken ticket machines or unmanned ticket offices prevent passengers from buying a ticket before travel. Technology can also play a role, with app or ticket machine failures further complicating ticket purchase.

For those people who deliberately set out not to pay for their rail journey, the reasons are equally varied. Some believe their ticket won’t be checked or, if it is, they won’t be fined. Others are prepared to risk a fine if their train journey comes with an expensive price tag.

Revenue protection has been on the government radar for decades. Simplifying fare structures, improving ticketing options and adjusting penalty frameworks have all come under scrutiny as areas to focus on to help reduce ticketless travel.

But this is only part of the picture.

What is ticketless travel costing the UK rail network?

The ORR Independent review of train operators’ revenue protection practices in June 2025

estimates direct financial losses from fare evasion in Great Britain at between £350 and £400 million. We would argue that this figure is in fact much higher.

Consider the increase in annual rail journeys by approximately 150 million since 2012 – a 10% rise (source: ORR); the fact that UK rail fares have risen by approximately 46% over the same period (tracked by the Retail Price Index by the Office for National Statistics); and the introduction of multiple payment options that have given rise to more sophisticated and elusive forms of fare fraud. Given these factors – and additional data to which we have access – we estimate that the true financial cost of ticketless travel and fraud to the UK rail industry exceeds £1 billion every year. That’s £38 million every month – over £1million every single day.

But we believe that the true cost of ticketless travel runs much deeper than a numerical figure. This is money that could be invested into the wider rail network: infrastructure, more frequent and reliable services, better facilities and job creation across the sector. When this investment is lacking, it means poorer service quality for rail users, which can often discourage people from rail travel. There is also the knock on effect of higher ticket prices, which – for those prepared to risk fines for more expensive journeys – only serves to increase the fraud risk.

And, for train operating companies, the increase in rail fraud means an increase in the burden of enforcement and administrative costs. More of a TOC’s income is diverted into revenue protection officers and ticket inspectors, which only tackles the symptom, not the root cause.

What is the solution to reducing ticketless rail travel in the UK?

Rail fraud in the UK is on the rise – a result of behavioural, economic and enforcement-related factors. The increase in recorded cases is in part due to greater detection and enforcement. But the cost of living crisis and rising rail fares are also contributing factors.

Government recommendations include making buying the right ticket simpler and easier; strengthening consistency in the way passengers are treated when rail fraud is identified; introducing greater consistency and fairness in the use of prosecutions; making information on revenue protection easy to access and understand and increasing coordination, oversight and transparency of revenue protection activity. And these are all valid points.

We are seeing many TOCs increasing their fraud teams. In 2023, one TOC we spoke to had two people in its fraud team. By 2025, that number had increased to 12. But, as well all know, investing in human resources is expensive.

Our view is that a combination of technology, data analysis and cross-industry collaboration is key to reducing both intentional and unintentional rail fraud across our industry.

Our purpose-built software platform is built on over a decade’s worth of in-depth technical rail industry and revenue protection experience, and helps operators recover money more quickly, use data to prevent revenue loss and reduce fraud. From a mobile inspection app to automated back-office case management system, and business intelligence dashboards that help predict revenue loss, it covers the full rail travel cycle. We are continually investing in the platform, based on feedback from operating companies and the ever-evolving threat of rail fraud to enable TOCs to stay one step ahead in addressing this key issue head on.

Collaboration is another vital part of the jigsaw. Our annual Rail Revenue Protection & Fraud seminar brings together representatives from 70% of the UK’s train operating companies to share insight and best practice on reducing revenue loss.

We believe this kind of collaboration will help all TOCs come together to combat ticketless travel and fraud. We will continue to nurture it by providing a confidential space where operating companies can share best practice with each other along with their commitment to protecting revenue across Britain’s rail network. We look forward to continuing the conversation and driving progress, together.

There is no single reason people travel without a valid rail ticket. Mistakes and confusion are often as much to blame as deliberate fare evasion.

The proliferation of ticket types, zones and conditions can lead to honest mistakes among rail travellers. Passengers may have purchased a valid ticket, but for the wrong destination, route or fare type for the journey they are making. Forgotten or expired railcards are also a common factor. In some cases, broken ticket machines or unmanned ticket offices prevent passengers from buying a ticket before travel. Technology can also play a role, with app or ticket machine failures further complicating ticket purchase.

For those people who deliberately set out not to pay for their rail journey, the reasons are equally varied. Some believe their ticket won’t be checked or, if it is, they won’t be fined. Others are prepared to risk a fine if their train journey comes with an expensive price tag.

Revenue protection has been on the government radar for decades. Simplifying fare structures, improving ticketing options and adjusting penalty frameworks have all come under scrutiny as areas to focus on to help reduce ticketless travel.

But this is only part of the picture.

What is ticketless travel costing the UK rail network?

The ORR Independent review of train operators’ revenue protection practices in June 2025

estimates direct financial losses from fare evasion in Great Britain at between £350 and £400 million. We would argue that this figure is in fact much higher.

Consider the increase in annual rail journeys by approximately 150 million since 2012 – a 10% rise (source: ORR); the fact that UK rail fares have risen by approximately 46% over the same period (tracked by the Retail Price Index by the Office for National Statistics); and the introduction of multiple payment options that have given rise to more sophisticated and elusive forms of fare fraud. Given these factors – and additional data to which we have access – we estimate that the true financial cost of ticketless travel and fraud to the UK rail industry exceeds £1 billion every year. That’s £38 million every month – over £1million every single day.

But we believe that the true cost of ticketless travel runs much deeper than a numerical figure. This is money that could be invested into the wider rail network: infrastructure, more frequent and reliable services, better facilities and job creation across the sector. When this investment is lacking, it means poorer service quality for rail users, which can often discourage people from rail travel. There is also the knock on effect of higher ticket prices, which – for those prepared to risk fines for more expensive journeys – only serves to increase the fraud risk.

And, for train operating companies, the increase in rail fraud means an increase in the burden of enforcement and administrative costs. More of a TOC’s income is diverted into revenue protection officers and ticket inspectors, which only tackles the symptom, not the root cause.

What is the solution to reducing ticketless rail travel in the UK?

Rail fraud in the UK is on the rise – a result of behavioural, economic and enforcement-related factors. The increase in recorded cases is in part due to greater detection and enforcement. But the cost of living crisis and rising rail fares are also contributing factors.

Government recommendations include making buying the right ticket simpler and easier; strengthening consistency in the way passengers are treated when rail fraud is identified; introducing greater consistency and fairness in the use of prosecutions; making information on revenue protection easy to access and understand and increasing coordination, oversight and transparency of revenue protection activity. And these are all valid points.

We are seeing many TOCs increasing their fraud teams. In YEAR, one TOC we spoke to had two people in its fraud team. By 2025, that number had increased to 12. But, as well all know, investing in human resources is expensive.

Our view is that a combination of technology, data analysis and cross-industry collaboration is key to reducing both intentional and unintentional rail fraud across our industry.

Our purpose-built software platform is built on over a decade’s worth of in-depth technical rail industry and revenue protection experience, and helps operators recover money more quickly, use data to prevent revenue loss and reduce fraud. From a mobile inspection app to automated back-office case management system, and business intelligence dashboards that help predict revenue loss, it covers the full rail travel cycle. We are continually investing in the platform, based on feedback from operating companies and the ever-evolving threat of rail fraud to enable TOCs to stay one step ahead in addressing this key issue head on.

Collaboration is another vital part of the jigsaw. Our annual Rail Revenue Protection & Fraud seminar brings together representatives from 70% of the UK’s train operating companies to share insight and best practice on reducing revenue loss.

We believe this kind of collaboration will help all TOCs come together to combat ticketless travel and fraud. We will continue to nurture it by providing a confidential space where operating companies can share best practice with each other along with their commitment to protecting revenue across Britain’s rail network. We look forward to continuing the conversation and driving progress, together.