UK FRAUD LEVELS PEAK AT £1.374 BILLION IN 2010

February 2011 – KPMG LLP reports rise of 16% on 2009, with 42% of total fraud targetting Government organisations

International auditing firm KPMG LLP has reported that its “fraud barometer” has recorded the highest ever levels of UK fraud in the twenty three years it has been monitoring Crown Court prosecutions for frauds over £100,000 in value.

The total value of fraud recorded in 2010 was £1.374 billion up 16% on 2009. Of the total fraud 42% was directed at Government agencies. A KPMG spokesman attributed the rise to a combination of austerity measures, rising unemployment and structural changes in the economy.

One encouraging aspect of the figures was a marked reduction in the levels of mortgage fraud apparently due to the success of more stringent checks adopted by financial institutions.

Mark Dutton, director of W Denis Insurance Brokers Plc commented “The KPMG data only measures high value cases brought to trial. The overall cost to the UK economy is estimated to be in the region of £2 billion, half of which is obtained by professional criminals”.

W Denis Insurance Brokers Plc offer a range of Crime Insurance Products designed to protect Companies, Charities and Financial Institutions against the consequences of the dishonesty of employees, volunteers or third parties including electronic funds transfer, cyber-crime and credit card fraud as well as traditional larceny and theft.