Knowledge Centre
5th February 2008
Fraud cases top £1 billion
Fraud in Britain hit a 12-year high in 2007, according to a yearly report by KPMG.
And in 2008, a potential economic slowdown could raise "personal and corporate pressures" that make the situation worse, the analyst warns.
KPMG Forensic's Fraud Barometer puts the value of fraud cases brought to court in 2007 at £1,017 million. Although the number of cases dropped to 198, down from 277 in 2006, KPMG explains that the number of cases reaching court in 2005, 2006 and 2007 were higher than any other years in the barometer's 20-year history.
According to the barometer, one third of the 198 fraud cases were perpetrated by professional criminals. Management was responsible for 17% of cases, and customers for 18%. When it came to the victims of fraud, businesses were second only to the government, falling victim in 23% of cases.
In October, PricewaterhouseCoopers' economic crime survey revealed that 48% of UK businesses said that they had been the victim of fraud.
"Levels of fraud... remain disturbingly high," said Hitesh Patel, partner at KPMG Forensic.
"As companies tighten their belts in the harsher conditions and take a closer look at their operations and related expenditure, it is highly possible that a greater number of frauds may be detected."
And in 2008, a potential economic slowdown could raise "personal and corporate pressures" that make the situation worse, the analyst warns.
KPMG Forensic's Fraud Barometer puts the value of fraud cases brought to court in 2007 at £1,017 million. Although the number of cases dropped to 198, down from 277 in 2006, KPMG explains that the number of cases reaching court in 2005, 2006 and 2007 were higher than any other years in the barometer's 20-year history.
According to the barometer, one third of the 198 fraud cases were perpetrated by professional criminals. Management was responsible for 17% of cases, and customers for 18%. When it came to the victims of fraud, businesses were second only to the government, falling victim in 23% of cases.
In October, PricewaterhouseCoopers' economic crime survey revealed that 48% of UK businesses said that they had been the victim of fraud.
"Levels of fraud... remain disturbingly high," said Hitesh Patel, partner at KPMG Forensic.
"As companies tighten their belts in the harsher conditions and take a closer look at their operations and related expenditure, it is highly possible that a greater number of frauds may be detected."
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