UK Fraud Cases Double

The number of fraud cases in the UK more than doubled in the 2005, a survey claims.

Research conducted by professional services firm KPMG showed that there were 153 major cases recorded in court in 2003.

The value of fraud cases almost halved last year to £374 million, because fewer VAT matters were identified, the company claims.

However, the KPMG "fraud barometer" found almost 80 per cent of cases were committed through organised crime or by companies' own management.

David Alexander, fraud investigation partner at KPMG, said: "The barometer shows that more frauds than ever are being committed. Companies are being attacked both internally and externally."

He went on to say the high value figure in 2002 had been due to "carousel" VAT frauds, such as repeated cross-border purchases of goods such as computer chips or mobile phones between connected companies.

In such cases, goods are imported from zero-rate VAT sources and sold with the VAT included. The company then disappears without paying the VAT on to Customs.

The KPMG barometer showed that London reported the most number of frauds with 40 cases - compared with 30 in the Midlands and 22 in the North West .

The total value of fraud in London , the South East and the Midlands was more than £270 million - around 70 per cent of all fraud reported.

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