Figures produced by specialist analyser KPMG's Fraud Barometer concentrate on major fraud cases (with charges totalling £100,000 or more) that have been heard in the Crown Court. The statistics also reveal that the profits of fraudsters dealt with by our courts are changing.
"A new type of fraudster is emerging in the form of an employee or third party," said Jeremy Outen, fraud investigation partner at KPMG Forensic Accounting. "They might not be directly involved in banking or finance, but are still committing low value crime."
This year has seen an increase in both the proportion of employees committing fraud (up from 10% in 2000 to 16% in 2001) and the actual number – 14 so far this year, compared with 11 for the whole of 2000. The amount of third party defendants is also up to 27% from 17%, as is the actual number (25) – which again surpasses the total figure of 18 throughout last year.
Conversely, management fraud cases have declined by 50% since 1999. "This suggests that companies are finally wising up to detecting and preventing this type of fraud," added Outen. "The threat now lies lower down the ranks."
While last year saw a number of high value fraud cases, the average value of an individual case is decreasing – the 2001 figure of £2.6 million is down from £3.1 million in 2000 and £9.4 million back in 1999. Few large value frauds have actually reached court this year, and only two were over £7 million (£47 million and £18 million respectively).
Banking frauds have dropped significantly since 2000, with only one case reported so far this year (worth £540,000) compared with four cases in 2000 whose monetary worth exceeded £3.5 million.
Meanwhile, public sector fraud is on the decline (from 30% down to 20%). Only nine cases have been reported since the turn of the year.
Commercial fraud, on the other hand, has risen dramatically – doubling from 27% to 50%. The value of commercial cases currently stands at £68.4 million, already fast-approaching the 2000 total of £82.2 million.
Source
SMT
