Midlands has become a fraud hotspot
THE Midlands’ fraud problem is escalating with the total value of fraud rising seven fold to £148.5m in 12 months, according to accountancy firm KPMG.
According to the firm’s latest Fraud Barometer fraud cases have risen significantly across the UK but the Midlands now has the highest level of fraud outside of London and the South East.
Simon Albrighton, forensic partner at KPMG in the Midlands said: “A seven fold increase on the same period last year highlights the sad fact that criminal fraudsters see times of austerity as an opportunity to target individuals and entities in a systematic and organised fashion.
“The good news is that more cases are being brought to prosecution but, realistically, this is only scratching the surface of the underlying value that is being lost.”
Fraud cases in the region ranged from small-scale fraud to multi-million pound schemes and included tax frauds, savings fraud and siphoning money from company accounts. In one case a financial controller stole £1.5m from her employers to fuel a luxury lifestyle including the purchase of BMW cars, luxury holidays and plastic surgery.
Nationally, figures were also on the increase with fraud cases totalling over £0.5bn in the first half of 2013, up over a quarter on the previous year.
According to the data a more sinister theme has played out this year with professional criminals becoming the biggest perpetrators – responsible for frauds totalling some £290m, up from £110m in 2012. One of the key drivers for this has been supply chain frauds worth £61m (up from less from £1m in 2012).
Fraud committed against investors also saw a huge increase in 2013, with frauds totalling £74m coming to court.
The data shows that fraud is overwhelmingly committed by men, with 86% of frauds in 2013 committed by men, and by people over 35 (responsible for 95% of frauds in 2013).
