Monday, Jan 11, 2010
From top to bottom - it's rife.
Guardian: White-collar fraud up by 76%
Reported fraud smashed the £2bn barrier for the first time last year and could top £5bn within a couple of years with managers uncovering more theft as they clamp down on costs and cashflow in the recession.
The startling amount lost by businesses and the public sector to larger frauds last year is up 76% on 2008 levels.
The figures have been collected by BDO, the accountancy firm, which has one of the largest fraud investigation teams. Simon Bevan, the group's head of fraud, said: "2009 saw the steepest increase since our report began seven years ago, with the average value of each fraud now over £5m compared to £1.8m in 2003."
Posted by dill @ 10:50 AM (739 views) Add Comment
4 Comments
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1. p. doff said...
I wonder if this includes MPs expenses fraud.
No chance, - their 'rules' say it's ok for them to steal from the taxpayer.
2. icarus said...
If the fraud is big enough it doesn't count as fraud. It counts as banking.
3. mr g said...
Icarus @2 "If the fraud is big enough it doesn't count as fraud. It counts as banking."
Excellent analogy!
4. jack c said...
Mortgage fraud accounts for 18% of all fraud
UK fraud broke the £2bn barrier in 2009 for the first time, with mortgage fraud accounting for 18% of all fraud, shows research from BDO LLP. BDO LLP, one of the UK’s largest teams of specialist fraud investigators says the financial sector continues to head from bad to worse, with a massive 70% increase on last year’s figures to £1.340bn. Mortgage fraud alone accounted for 18% of all reported fraud this year and accounts for 27% of all fraud in the finance and insurance sector.These frauds typically work through a large loan being taken out on an overvalued property, with a crooked buyer in collusion with a corrupt valuer and/or lawyer. When these frauds hit here, they hit large, since the same team will work on many properties in succession. Fraud against the finance sector now accounts for 64% of all reported fraud by value. In its experience well over 90% of larger frauds do not get reported to authorities. The amount lost by businesses and the public sector to larger frauds increased last year by a startling 76% during the recession, with both the number and size of frauds increasing dramatically.
Source www.mortgagestrategy.co.uk/lenders/mortgage-fraud-accounts-for-18-of-all-fraud/1004696.article