Fraud Barometer up 40%

For the 23rd year KPMG has run its Fraud Barometer in the UK, finding that more than 40% of cases of fraud were aimed at the government, and altogether amounted to over £570 million.

Since 2009, the sum has risen over 18%. There were 70 incidents in 2010 and 59 the year before.

The number of reported incidents has picked up amazing speed and size. Last year more than 310 cases were filed (representing more than £1.37 billion), which is the greatest amount on record, in the past 23 years of KPMG’s investigations into fraud.

Compared to the 271 cases filed in 2009, this is a 16% increase.

Perhaps the biggest incident last year amounted to £103 million. It was perpetrated by a man in his late 40’s trying to file fake bids to receive breaks on his taxes, due to his research involving green tech.

The management sector rocketed out of control last year, with a jump of 20% up to nearly £420 million. Since managers are entrusted with authority and our trust as well, they are in a more powerful position to cause greater damage. More than 60 cases of almost £420 million were filed, much greater than the nearly 80 cases worth just under £130 million in the year before.

The director of a firm, who sent huge amounts of money from taxpayers abroad, won notability as the highest fraud. He went further, though, by establishing a money laundering operation in the form of currency exchange, to cover the tracks of 100 of his criminal friends.

The largest problem for the UK is still criminals in the professional class. This kind of criminal pulled off frauds of £709 million last year, representing over 50% of frauds.