Fraud hits record level
Jul 20 2009
“Fraud numbers reach new high”
Cases of fraud have climbed to an all time high, says accountancy firm KPMG.
In the first half of 2009, 160 cases of serious fraud totaling £636 million were brought to court – the highest number since the firm started its Fraud Barometer in 1988.
The research found that the sums involving fraud committed by managers were far higher than those committed by employees, with 32 cases of management fraud amounting to £150 million, compared to 31 cases by staff totaling £24 million.
Hitesh Patel, partner at KPMG Forensic, says: ‘These figures are bad, but the worst is yet to come. To use Warren Buffett’s analogy, it is clear that the tide is still on its way out. It will be a number of years before the impact of the recession fully feeds through into the fraud statistics.’
Adds Patel: ‘It is important that, given the huge media profile of some super-cases such as Madoff, we do not become desensitised to the seriousness of all fraud. Even small cases can cause extreme stress and suffering to those involved, and create major reputational and financial difficulties for the companies and individuals caught up in them.’
Recent research by fraud prevention service CIFAS found that London - including Greater London - is the key hotspot for fraudulent activity.