The public sector is now more fraud in financial services, one of the major accounting firms in the country, said – while iTunes is proving a hit with white-collar criminals.
The latest KPMG fraud barometer shows that 42.5 percent of all cases of fraud were brought to the Exchequer, for a total of 593 million pounds. This was an increase of almost 20 per cent from 59 cases in 2009 to 70 in 2010.
One of the biggest cases worth 103 million pounds, in which a man aged 48, said a flood of fraudulent offers of tax exemptions in search of green technologies.
In the private sector, the most important case in the past 12 months has been valued at ￡ 200 – in which a director of a company town to transfer large sums of taxpayers’ money into the country. He then created an exchange company to help over 100 clients clean the criminal proceeds of fraud.
However, professional criminals remain the main external threat to the United Kingdom, being the largest group of perpetrators of fraud, registering a total of ￡ 709m in 2010 (51 percent) compared to 718 million pounds in 2009.
Determined fraudsters are also very interested in exploiting the latest technological trends, as one of the cases cited in the Midlands, where a DJ was accused of plotting a credit card fraud on the i-Tunes site. The man and his accomplices 10 sites targeted by Apple and Amazon, with 20 songs that are then sold through their websites. It is estimated that about 1500 then donated credit cards to buy songs, and then ask for a little less than ￡ 469 000 in royalties.
Hitesh Patel, KPMG Forensic partner, commented: “The online universe has opened up a whole new world for innovative fraudsters. While credit card and data theft remain common tools from which they are able to profit, the need for ever-more effective techniques to combat fraud grow greater by the day. Unfortunately, anti-fraud measures do not always keep pace with professional criminal activity.”
Mortgage fraud, which was rife in the first half of 2010, plummeted from July to December, dropping from 21 to 13 cases (￡96m to ￡12.4m), suggesting the bigger, more organised mortgage fraud is being tackled head-on by financial institutions.
The government made ￡ 900m available during the spending review to generate additional revenue from tax evaders.