In the UK reported fraud has reached a peak says the six month update from BDO the accountancy firm. It suggests that authorities in the UK have reached their limits in prosecuting the offender and the indication of a change in behavior when fraud needs to be tackled by organizations.
According to the Fraud Track figures on the half-year that BDO LLP released this afternoon, the total fraud reported was close to £920 million compared to the same time last year, December – May, when it was over £1 billion.
What has also dropped is the value of each individual reported fraud from £6 million to only £4.5 million making it the most significant reduction in over four years but with a total case load of 205 it represents the highest amount of incidents that were reported.
There is also a disparity in the figures from BDO reports with regard to how they are tackling fraud in the public sectors and private sectors. Fraud in the public sector is close to doubling from the £215 million last year to the £430 million for 2011 while in the insurance and finance sectors fraud reported has been nearly cut in half in the same time period. In 2010 the figure was nearly £525 million and today has dropped to £274 million.
Of the total fraud reported in the UK for the year public administration represents close to 46%. Procurement fraud has always been thought of as the most common fraud but was only reported twice in the period compared to cash and theft fraud which was reported 60 times. The figures seem to indicate companies in the private sector are choosing what frauds they will report.