Cost of UK fraud hits a record high
30 Jan 2012
Fraud in the UK reached a
record high in 2011, with one high profile rogue trader case
tipping the balance, according to KPMG.
The KPMG Fraud Barometer revealed that fraud totalled £3.5 billion
in 2011, an increase of 150 per cent on the previous year, but the
majority of that was in the second half of the year.
However, KPMG reported that even without the £1.3 billion loss at
UBS, the last two quarters of 2011 would still have seen the
largest levels of recorded fraud since the first survey by the firm
in 1987.
Scams committed by those in management positions increased by 74
per cent, accounting for 57 cases and a value of £729
million.
The most fraud was carried out in the public sector and at
financial firms.
Some 68 cases of fraud were reported in the public sector,
totalling £1.09 billion, while financial firms saw 59 cases worth
£1.52 billion.
Hitesh Patel, a forensic partner at KPMG, said: "2011 was an
extraordinary year for fraudsters – as demonstrated by the record
losses through large-scale cases of fraud which dominated the
headlines."
"The pressures on individuals as a result of the downturn continues
to act as a catalyst for more fraud being perpetrated. These
figures represent the thin edge of a much bigger wedge."
KPMG published the report the same day as former UBS trader Kweku
Adoboli is scheduled to appear in court to enter a plea to two
counts of fraud and to two of false accounting.
Businesses affected by fraud may wish to contact
the specialist solicitors at HJA, who will ensure that the case is
handled with a minimum of stress.
