Fraud figures ‘represent a thin edge of a much bigger wedge’
KPMG’s Fraud Barometer has found that the total amount of fraud in 2011 reached a record high of £3.5bn.
£2.5bn worth of fraud was recorded during the second half of the year – including five large fraud cases of more than £50m each coming to court. One rogue trader case, alone (which has not yet been tried), accounted for £1.3bn and even without its inclusion, the six months to December 2011 would still have seen the largest amount of fraud ever recorded by KPMG in a six month period.
Hitesh Patel, KPMG Forensic Partner, commented: “These figures represent the thin edge of a much bigger wedge.”
The Government and the public purse continues to be a target for fraudsters, with the sector having had the highest number of cases (68) recorded to the value of £1,097,979,711.
Mr Patel adds: “At a time when the country is battling with a huge deficit the dual assault on social welfare and infrastructure budgets is far from a victimless crime. It is a problem that affects us all as funds are deprived from the front line leading to higher levels of taxation, insurance costs and prices for products and services.”
Despite financial institutions having implemented leading-edge technologies and strategies to combat fraud and money laundering, they continue to be under relentless attack. KPMG’s analysis shows this is largely from professional criminals, but in some cases insiders and customers alike, with 59 cases worth £1,527,476,853. But as customers increasingly move to online and mobile banking for convenience, the banks are working hard to ensure modern technology platforms remain secure.
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