Value of NW fraud doubles – BDO

REPORTED fraud in the North West nearly doubled last year to more than £49.2m, according to BDO’s Fraud Track research.

BDO compiles all cases worth more than £50,000 which is why its figure is higher than KPMG’s, whose Fraud Barometer researchers only look at frauds worth more than £100,000.

BDO says the £50,000 to £100,000 bracket accounts for around a third of all cases and expects a large number of additional financial crimes go unreported.

According to Fraud Track there were 47 cases, with the largest involving a St Helen’s businessman accused of plotting to defraud Natwest out of more than £20m. Other cases involved an £11m tax fraud at Manchester Crown Court, two men defrauding 128 elderly investors out of a total of more than £5m, and a father and son duo who laundered £1m by touting Manchester United tickets.

Third party fraud, via suppliers and customers, is the most common type committed in the region, representing almost £21m of the North West’s total, followed closely by tax fraud at £17m.

Brent Wilkinson, forensic partner at BDO in Manchester, said: “Despite the hike in reported fraud across the North West, the reality of it is that the vast majority still goes unreported. We’re seeing an increasing number of victims preferring to pursue civil remedies – rather than criminal – in the hope of recovering monies more effectively and avoiding any further reputational damage.”