PracticeAuditManagers inflict biggest fraud damage

Managers inflict biggest fraud damage

Barometer sees mortgage fraud rocket

Managers commit bigger frauds than employees with an average fraud size of
£4m, according to the latest
KPMG Fraud Barometer report.

Covering the first six months of this year the report found 32 cases of
managers against 47 by employees, but the managers fraud totaled £135m in value
while employees attempted to get away with £45m.

The report said: “At an average value of over £4m per case compared to £1m
per employee case, managers are clearly able to carry out larger frauds due to
their positions of greater authority and the trust they are afforded.”

The Barometer measures fraud cases appearing in UK courts. The first half of
2010 saw 166 cases with a total value of £608.5m – down 4.3% on the first half
of 2009. Though the figures for last year were inflated by a single case worth
£200m. This year the biggest case was £60m.

Mortgage fraud has quadrupled year on year and accounts for nearly half of
all fraud committed against the financial sector.

Hitesh Patel, partner, KPMG Forensic said: “The fact that increasing amounts
of mortgage fraud are being prosecuted is cold comfort for the financial
services industry. Clearly, more of it is coming to light and more will follow.
It is highly probable that the issue is far bigger than our figures
demonstrate.”

Read more:

HMRC
sting sees fraudster jailed

Fraud
breaks £1bn barrier

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