Menu
30/01/2006
Fraud level triples in a year
A surge in fraud cases in the second half of in 2005 resulted in over £900 million of fraud being recorded - up nearly three times from the previous year's £329 million.
According to the report from auditors KPMG, the Government remains the main victim of fraud (£447 million), largely through attempts at tax evasion, VAT and benefits fraud, but fraud against financial institutions – card fraud, identity fraud, false cheques - has spiralled dramatically, up from £37 million in 2004 to reach £360 million in 2005.
Around half of the frauds, £420 million, are carried out by professional gangs, but £468 million was the result of ‘insider’ fraud by management or company employees.
Partner at KPMG Forensic, Jeremy Outen, said: “There has been a worrying boom in fraud in recent months, although the good news is that we know this because the fraudsters are being successfully brought to book. Criminal gangs appear to be very active with aggressive stings, while in the private sphere internal frauds to fund excessive lifestyles or to pay off burgeoning debts shows no sign of abating. With both the number and the average value of frauds increasing, companies and individuals need to be more watchful than ever.”
Mr Outen said: “All too often, insider frauds are conducted over a period of months or even years without anybody noticing. It is often the most unassuming or trusted person that is perpetrating a fraud. Indeed, it is getting into a position of trust that can create the opportunity and temptation to steal in the first place."
The report revealed identity fraud continued to be rife, as fraudsters seek ways around the tighter controls introduced by such measures as chip and PIN.
‘Phishing’ scams on the internet remain a common way of obtaining people’s identities and bank details.
However, companies were urged to review their internal controls processes where appropriate, and make more use of some of the extremely sophisticated fraud detection software packages that have been developed.
The research, which for the last 16 years has considered major fraud cases, those totalling more than £100,000, being heard in the UK Crown Courts saw 222 cases reach court over the course of 2005, up from 174 cases in 2004.
(SP)
According to the report from auditors KPMG, the Government remains the main victim of fraud (£447 million), largely through attempts at tax evasion, VAT and benefits fraud, but fraud against financial institutions – card fraud, identity fraud, false cheques - has spiralled dramatically, up from £37 million in 2004 to reach £360 million in 2005.
Around half of the frauds, £420 million, are carried out by professional gangs, but £468 million was the result of ‘insider’ fraud by management or company employees.
Partner at KPMG Forensic, Jeremy Outen, said: “There has been a worrying boom in fraud in recent months, although the good news is that we know this because the fraudsters are being successfully brought to book. Criminal gangs appear to be very active with aggressive stings, while in the private sphere internal frauds to fund excessive lifestyles or to pay off burgeoning debts shows no sign of abating. With both the number and the average value of frauds increasing, companies and individuals need to be more watchful than ever.”
Mr Outen said: “All too often, insider frauds are conducted over a period of months or even years without anybody noticing. It is often the most unassuming or trusted person that is perpetrating a fraud. Indeed, it is getting into a position of trust that can create the opportunity and temptation to steal in the first place."
The report revealed identity fraud continued to be rife, as fraudsters seek ways around the tighter controls introduced by such measures as chip and PIN.
‘Phishing’ scams on the internet remain a common way of obtaining people’s identities and bank details.
However, companies were urged to review their internal controls processes where appropriate, and make more use of some of the extremely sophisticated fraud detection software packages that have been developed.
The research, which for the last 16 years has considered major fraud cases, those totalling more than £100,000, being heard in the UK Crown Courts saw 222 cases reach court over the course of 2005, up from 174 cases in 2004.
(SP)
Related UK National News Stories
Click here for the latest headlines.
08 December 2003
City of London police to take lead role in fraud probes
The City of London Police is to take the lead in investigating fraudsters and complex fraud cases in the south east, and the government has earmarked £2 million to assist the force in their expanded role.
City of London police to take lead role in fraud probes
The City of London Police is to take the lead in investigating fraudsters and complex fraud cases in the south east, and the government has earmarked £2 million to assist the force in their expanded role.
10 December 2010
Further Fraudster Sentenced In £17million VAT Fraud
The sixth member of an organised crime gang was sentenced today for his part in a plot to steal £17m of taxpayer’s money in a complicated ‘missing trader’ VAT fraud. Five men were jailed last Friday for 15 years. A further ten defendants have been charged and are due to stand trial next year.
Further Fraudster Sentenced In £17million VAT Fraud
The sixth member of an organised crime gang was sentenced today for his part in a plot to steal £17m of taxpayer’s money in a complicated ‘missing trader’ VAT fraud. Five men were jailed last Friday for 15 years. A further ten defendants have been charged and are due to stand trial next year.
10 March 2009
Nine Held Over Alleged £40m Mortgage Fraud
Nine people are being questioned by police in relation to an alleged £40 million mortgage fraud, according to police. Officers from City of London Police fraud squad are searching six homes and three business premises in southern England. Eight men and one woman were held following the raids on the residential addresses in Sussex and north London.
Nine Held Over Alleged £40m Mortgage Fraud
Nine people are being questioned by police in relation to an alleged £40 million mortgage fraud, according to police. Officers from City of London Police fraud squad are searching six homes and three business premises in southern England. Eight men and one woman were held following the raids on the residential addresses in Sussex and north London.
26 April 2005
35 arrested in £20 million pound cheque fraud
Police have arrested 35 people across the UK in connection with a major investigation into multi-million pound cheque fraud. The arrests were made following a series of dawn raids, involving around 400 police officers, at 36 addresses across London, Surrey, Kent, Cambridgeshire, West Midlands, West Yorkshire and Manchester.
35 arrested in £20 million pound cheque fraud
Police have arrested 35 people across the UK in connection with a major investigation into multi-million pound cheque fraud. The arrests were made following a series of dawn raids, involving around 400 police officers, at 36 addresses across London, Surrey, Kent, Cambridgeshire, West Midlands, West Yorkshire and Manchester.
12 February 2004
Benefit fraud crackdown saves taxpayers £400m
A government crackdown against fraud and error has saved £400 million of taxpayers money, according official statistics released today. The figures showed that overpayments in 2002/03 were £400 million less than they would have been if fraud and error had stayed at the same level as the baseline year of 1997/98.
Benefit fraud crackdown saves taxpayers £400m
A government crackdown against fraud and error has saved £400 million of taxpayers money, according official statistics released today. The figures showed that overpayments in 2002/03 were £400 million less than they would have been if fraud and error had stayed at the same level as the baseline year of 1997/98.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
