UK Fraud Reaches 12-Year High
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The UK saw over £1 billion (US$1.96 billion) of fraud coming before the courts in 2007.The vast majority (90 percent by value) of court cases involved organized gangs carrying out white-collar crimes such as ID theft and VAT (value-added tax) scams.
According to KPMG, last year fraud cases before British courts reached the highest level since 1995. Government was the primary target, suffering £833 million worth of fraud in 2007.
Banks were scammed for £37 million, down from £140 million in 2006, KPMG says.
In 2007, commercial businesses lost £24 million, down from £81 million in 2006. Last year, accounting fraud stood at £20 million, the study reveals.
London and the South East of England were the main fraud hotspot in 2007, representing 65 per cent by value, or £655 million, and over 35 per cent of the total cases.
A KPMG spokesperson said high-tech frauds such as phishing and other online scams are providing new opportunities for criminals. "A lot of this ID theft is being carried out online,” the spokesperson told Silicon.com. “Technology is the new battleground on which fraud is being fought, and the fraudsters are becoming more and more sophisticated."
Authorities and companies need to keep up with the fraudsters using technology such as analytical software to spot unusual patterns of activity, KPMG urges.
In a statement, Hitesh Patel, a partner at KPMG Forensic, predicted fraud could continue to rise this year. "Given the current economic climate with the risk of a slowdown, companies and individuals need to be more alert than ever to the fraud threat," Patel warned.
Related Links
www.kpmg.co.uk
Fraud hits 12 year high in 2007
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