Fraudsters targeting higher value Midlands assets

The total value of alleged fraud cases heard in Crown Courts across the Midlands in 2022 rose to £143.6m across 31 cases, compared with £59m across 46 cases for the same period in 2021, according to latest figures.

KPMG UK’s latest Fraud Barometer, which records cases over £100,000 heard in UK courts, found that the value of losses increased significantly, highlighting that fraudsters are targeting higher value targets. The alleged fraud with the highest value recorded in the Midlands was a £100m money laundering case, a direct correlation to the rise of organised criminal rings.

Members of the general public continue to be the most common victim type by volume with 11 cases worth a combined value of £2.6m. Commercial businesses were the second most common victim type by volume, with nine cases worth a combined value of £3.2m. By value, Government was the highest victim with alleged frauds of £101.7m across six cases. The Government has seen a steady number of fraudulent cases as criminals seek to take advantage of various loopholes in tax systems and asylum benefits.

Professional criminals perpetrated the most cases of fraud across the Midlands with 16 cases worth a combined value of £129m in 2022.

A few of the cases to reach the region’s courts during this period include:

• A Director pleaded guilty to investing most of the money from three pension schemes into his own business. The 3 schemes were left with a shortfall of £10m.
• 57-year-old garage boss admitted 8 charges of fraud by false representation over scamming victims into buying cars which did not exist and swindled £500k from customers after tricking them into a sham car selling scheme.
• Employee took over £1.4m from company through falsifying invoices to fund gambling addiction. The employee was found guilty and sentenced to 4 years and 8 months in prison.

Julie Bruce, forensic lead for KPMG in the Midlands said: “Although the number of cases heard in Midlands Crown Courts decreased, the threat of fraud is still evident.

 “Fraudsters are finding new opportunities and ways of getting ill-gotten gains. Financial institutions that handle high volumes of money will have to tighten up on protective measures and ensure that proper due diligence is done across all new clients, and that staff are trained to spot any suspicious cases.”