Fraud cases rise despite lockdowns

Despite the lockdowns experienced last year, courts across the Midlands experienced a surge in the number of fraud cases being heard in 2021.

The volume of cases increased by 84%, from 25 in 2020 to 46 in 2021, while the value decreased by just 1%, from £59.8m in 2020 and £59m in 2021.

Across the West Midlands, both the value and volume of fraud cases rose, from £36.3m to £43m, and from 13 to 26 cases, respectively.

Eighteen of these cases were committed by males, accounting for £40.7m of the region’s £43m total, while females accounted for six of the cases worth a value of almost £1.7m. There were two cases committed by males and females with a combined value of £550,000.

It is a slightly different picture in the East Midlands, however, as the number of cases has increased by 67%, while the value of cases has decreased from £23.6m in 2020 to £16m in 2021.

Commercial businesses were the most common victim type, accounting for eight of the 20 cases heard in the East Midlands. The majority of these cases were committed by employees or management.

Julie Bruce, forensic director at KPMG in the Midlands, said: “As courts across the region continue making their way through a backlog of cases, we’re now starting to see a glimpse of the true picture of fraudulent activity. The fact that the volume of fraud cases increased yet values dropped, albeit ever so slightly, could suggest that on the surface the trend of committing higher value crimes isn’t as prevalent as it has been in previous years. However, I believe it’s much more likely that this is down to the delay in cases reaching the courts, as challenging economic circumstances almost always serve as encouragement for fraudsters to take advantage.

“With household purse strings tightening and concerns over rising energy bills and inflation, we expect to see a spike in fraud cases reaching courts in 2022, and if the pattern we’ve seen so far is anything to go by, we could see a record year for fraud values and volumes. With fraudsters looking for every and any opportunity to strike, businesses and consumers need to stay on high alert and ensure protective measures are in place to help them to do so.”

Case studies to reach the region’s courts during this period include:

A Nottinghamshire-based surgery practice manager who pocketed £200k funds from his employer while claiming that the money was being spent on finding locum doctors
 A gang of eight men pretending to be police officers who stole almost £200k from elderly and vulnerable victims across the West Midlands
 A 46-year-old female from Stoke-on-Trent who took £107k of taxpayers’ money as part of an income tax scam from a series of falsified claims