10 January 2011
Levels of fraud rocketed last year, with the public purse bearing the brunt of the scams, according to a report published today.
The annual KPMG Fraud Barometer found that cases across the economy hit a 23-year high in 2010, with those against the government increasing by almost 20% over the previous year.
The barometer tracks fraud cases in UK Crown Courts that are worth more than £100,000. Last year, there were 319, with a value of £1.4bn.
Some 42.5% of the crimes – worth £593m – were levelled against the public purse. Instances increased to 70, up from 59 in 2009. One of the largest individual cases was worth £103m. A 48-year-old man had claimed a series of fraudulent bids for tax breaks on research into green technologies.
KPMG forensic partner Hitesh Patel said: ‘Government agencies, like commercial businesses, have been increasingly vulnerable to the threat of fraud. In a year of austerity measures implemented by government, tax increases, the threat of rising unemployment and significant structural change, it is hardly surprising that the long fingers of the fraudster have reached into the public purse.
‘Fraud is not a victimless crime, particularly at a time when the country deficit is so high. Anti-fraud measures need to be reviewed and amplified by the public sector to combat this assault.’
Overall fraud was 16% higher than the previous year. Professional gangs were the highest perpetrators of the crimes, followed by employees, managers and customers.
