Fraud cases double across the region

The number of fraud cases reaching courts in Yorkshire and the North East has more than doubled in the past year, according to research from KPMG.

The business advisory firm’s Fraud Barometer report has found that the number of cases recorded in 2018 was 54, up from 21 in 2017. Similarly, over the same period, the value of fraud cases rose from £32.7m last year to £62.8m.

During 2018, evasion of duties and account takeover or payment transfer fraud were the most common offences. Meanwhile, investment fraud took the largest share of the total value of fraud, accounting for £26.3m.

Sara Smith, Forensic Director at KPMG in Yorkshire and the North East, said: “There has been an incredibly diverse range of fraud activity hitting local courts over the past year, covering nearly 20 different types of offence – from cigarette smuggling to investment scams. The common thread between them is that fraud can have a significant impact on people’s lives, take much needed funds from tax revenues and put an enormous strain on businesses. As cases get more complex and daring, but also become more frequent, private and public sector organisations and individuals in the region need to take proactive steps to protect themselves.”

Cases included:

• Sheffield Crown Court has demanded that two fraudsters from Halifax repay approximately £750,000 to victims of a sophisticated fraud which involved selling stolen goods online.
• A property developer in Bradford will have to pay more than half a million pounds back to victims or face prison after being found guilty of using funds from investors to pay for his own luxury lifestyle.
• A man in Hull was jailed for five years for his part in a major cigarette smuggling operation, which defrauded the UK taxpayer of more than £670,000.
• A businessman from Leeds was jailed for nine years after being caught in a sophisticated £10m VAT fraud case that fuelled a glamourous lifestyle in Marbella.

The number of fraud cases reaching courts across the UK rose by 78% in 2018 according to research by KPMG Forensic.

KPMG’s Fraud Barometer, which records cases of alleged fraud with a value of more than £100,000 found that 453 cases with a total value of £1.2 billion were coming to Court across the UK last year. The barometer includes one supercase (a case greater than £50m), but there are a large volume of smaller value cases between £10 million and £50 million covering areas such as evasion of duty, VAT fraud, investment fraud, loans and mortgages, counterfeit goods, pensions and social benefits.