Reported fraud rockets to more than £2bn in 2009

There was more than £2bn worth of reported fraud in 2009, the first time reported fraud has broken through the mark.

The sum increased by 76% with both the number and size of frauds increasing dramatically, according to BDO's Fraudtrack survey.

BDO predicts that, though shocking, the fraud figure is likely to keep rising – perhaps as high as £5bn a year.

Simon Bevan, BDO'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."

Bevan believes that reported fraud will treble over the next two years and that it will be driven by fraudulent borrowing, particularly through the use of overvalued property as security for loans.

"Currently, many of these frauds are yet to be recognised by the banks, which still have them classified as non-performing loans," said Bevan.

Read more:

BDO's Fraudtrack

Campaign against middle class fraud

Fraud fears see HMRC ramp up adviser burden