Region’s fraud cases more than triple, reaching £54.5m in first half
Fraud cases have more than tripled in Yorkshire and the North East, reaching £54.5m for first six months of 2018.
KPMG’s Fraud Barometer, which measures alleged fraud cases with losses of £100,000 or more in the UK courts, found that there were 32 cases in Yorkshire and the North East during the period, with a combined value of £54.5m.
The figures reveal that the number of cases has more than tripled and the value of alleged fraud has more than quadrupled compared to the corresponding period in H1 2017 when only nine cases with a combined value of £13.1m were recorded. The rate of alleged fraud has already surpassed the total value of fraud cases in the whole of 2017, which were worth £32.7m across 21 cases.
Professional criminals are alleged to have been responsible for nearly half of cases (47%) and a quarter of the total value.
Meanwhile, government organisations have been victims of around two in five cases (38%), the most targeted group, accounting for a similar proportion of total fraud value (37%).
Annette Barker, partner and head of consulting in the North, said:
“Professional criminals are the main driving force behind the staggering rise in alleged fraudulent activity we see coming through the courts in Yorkshire and the North East. Similar to the national picture, these gangs are often turning to smuggling to evade duties and taxes. While these figures point to a worrying level of criminality, it is encouraging that the authorities are having success in bringing these cases to court.”
“While there is a focus on professional criminals, the sheer scale of these cases can mask the underlying flow of more typical fraud cases we see committed against businesses, investors and financial institutions. The message for businesses and individuals across Yorkshire and the North East is to remain vigilant, particularly as technology is increasingly used by fraudsters.”
Case studies to reach the region’s courts during this period include:
A man in Bradford was sentenced to the maximum suspended sentence after being convicted of defrauding a bank where he worked of £380,000 .
A barrister was jailed for 18 months in Leeds after failing to submit VAT or self-assessment returns which led to HMRC incurring losses of £138,500.
A rogue trader in the construction trade was jailed for six years by Sheffield Crown Court after scamming more than 15 homeowners over a period of nine years.
A man from East Yorkshire was jailed for three years after making false statements to secure a £1.4m mortgage.
Looking at the national picture, the value of alleged fraud reaching UK Courts in the first half of 2018 reached £895m, according to KPMG Forensic. The figures follow 2017’s record breaking year which had registered £3.6bn of fraud – the largest value in KPMG’s Fraud Barometer’s 31 year history.
KPMG’s Fraud Barometer recorded 252 cases during January – June 2018. This figure is over 25% higher than the volume of cases heard in any six month period and just seven fewer cases than recorded for the whole of 2017.
James Maycock, forensic director at KPMG, said:“On the back of a year with the highest level of alleged fraud in three decades, 2018 appears to be continuing the trend and we can expect this year to be another 12 months of large numbers of fraud cases coming to court.”
“There are certain types of fraud that have dominated the fraud landscape over the past three decades, including the rise of the professionally organised gang who run criminal operations very much like a business. The main victims have been governments through attacks on the tax system, banks through loans and mortgages obtained via deception, and investors enticed by the promise of tantalising returns. Interwoven with the story is the increasing use of technology and cross-border activity that has impacted on fraud just as it has on our everyday lives. Businesses, public sector and consumers need to continue to be vigilant and on guard to fraud threats in these ever-changing environments.”
