While rogue traders and professional criminals have been behind the fraud ‘super’ cases seen in recent years, the latest bi-annual ‘Fraud Barometer’ from KPMG has shown a rise in individuals committing more traditional scams such as Ponzi schemes, cheque fraud and procurement fraud.
The analysis shows that identity fraud more than doubled in value to £26.3 million from £12.3 million the year before. Counterfeit goods fraud was three times the five-year average at £22.9 million and Ponzi schemes worth £72 million came to court – again three times the level seen in 2011 (£20 million).
The data shows a similar rising trend for procurement fraud, which increased to £21.4 million in 2012, and also that insider fraud is hitting corporates hard.
Fraud perpetrated by either management or employees accounted for 80% of the financial loss through fraud experienced by UK businesses in 2012. The number of cases involving employee fraud rose to 35 in 2012, up from 22 the year before. Their value has also seen a sharp climb, more than doubling from £12 million in 2011 to £25.1 million over the past 12 months.
There was also a marked increase in cases involving individuals over-claiming benefits or evading tax (15 cases compared to 3 in 2011).
“What we are seeing is individuals looking to feather their nests through ripping off employers, banks or the government,” said Hitesh Patel, UK Forensic Partner at KPMG. “In the last few years we have become used to sophisticated frauds at eye-watering values. While the total value of fraud has dropped substantially in the absence of so-called fraud ‘super’ cases, the old-fashioned con man hasn’t given up his tricks. Times may be tough but the data shows that some people are unwilling to give up the lifestyles they’ve become accustomed to.”
Contact our Fraud Defence Lawyers
If you are the subject of a false allegation regarding fraud and need one of our fraud defence solicitors to help you defend your case, please contact Jeffrey Lewis or Siobhain Egan or view our fraud defence services page.
