Fraud up a quarter to over £0.5bn

In the first half of 2013 fraud cases have totalled £0.5bn, up 38% from the same period in 2012.

According to latest KPMG ‘Fraud barometer’ the average fraud case value has increased dramatically from £2.8m to £3.5m.

They also found that professional criminals had become more involved in fraud with responsibility for frauds totalling £290m, up from £110m in 2012.

Hitesh Patel, UK Forensic Partner at KPMG, said: “While the back end of last year saw a resurgence of traditional con artistry, this year has seen fraud cases turn a darker corner with professional criminals acting across borders for the purpose of defrauding largely governments and financial institutions.

“What has been really marked is the increase in the corruption of supply chains by fraudsters. In one particularly shocking case, a company sold fake bomb detectors to Iraqi authorities, at a financial cost of £55m, but the real damage was human injury and suffering.”

KPMG warned that fraudsters are getting increasingly smarter at circumventing procurement processes and that firms need to ensure they have sophisticated detection plans in place.

Are you worried about the figures? Do you think conveyancers are generally doing enough to protect against fraud?

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