Fraud cost to UK businesses soared by 74% in the last six months on the same period last year, to more than £705m as the credit crunch took its toll, according to a BDO Stoy Hayward report released today.

Finance and insurance sectors were worst hit, reporting fraud worth £636m – more than 90% of total reported fraud and up 15-fold on the first six months of 2007, the Financial Times reports.

The biggest threat to business came from internally and management fraud accounts for 46% of the total but the problem could get bigger still, the report warned.

‘What is really scary is that these figures don't even include losses that may have been incurred by rogue traders,’ Simon Bevan, BDO Stoy Hayward head of fraud services said. ‘When you add in the fraud that's not yet been uncovered, or which businesses have discovered but don't wish to expose, the real cost to UK industry could be much, much higher.’

Further reading:

Police seize thousands from suspect company

Greencore sacks senior managers over accounting fraud

Read the Financial Times story