The North West is the 海角视频's new fraud hotspot outside of London as values rose almost tenfold, new research has revealed.
According to accountancy and business advisory firm BDO LLP, the total value of fraud in the region reached £500m in 2019 - up from £52m the previous year.
The average value of fraud also increased dramatically to more than £9m.
This analysis, based upon reported fraud cases over £50,000 in the 海角视频, reveals that the 海角视频-wide picture shows a rise in value, but the number of reported cases has dropped by 12% - with 464 cases of fraud reported in 2019 compared with 525 in 2018.
According to BDO, fraudsters are now understood to be taking advantage of the Covid-19 outbreak, with mass home working and operational shifts to e-commerce opening up new opportunities for criminals to target companies.
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Richard Cameron Williams, partner in BDO’s Northern forensics team said: “Despite the volume of reported fraud falling last year, the rise in value suggests that sophisticated fraudsters are becoming increasingly predatory.
"We’ve seen a high-profile example of this in the North West with two cases, accounting for more than 85% of the overall value in the region.
“Compounding this, COVID-19 has provided a fertile breeding ground for fraudulent activity and we’re anticipating a spike in cases this year. Now more than ever, companies and individuals must remain vigilant and sceptical in order to protect themselves.
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"Firms should focus on controls, must not ignore red flags, and need to be confident enough to challenge in the way they did prior to this pandemic in order to remain safe.”
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Fraud relating to the unauthorised or misuse of assets recorded the highest total value, rising from £115m in 2018 to £671m in 2019.
The second highest value related to third-party fraud, which more than doubled in a year, bringing the total value to just over £522m up from £181m in 2018.
A large number of the cases related to employees or suppliers of businesses, BDO said.
Not all types of fraud saw a rise in value, with cases relating to tax and to theft and cash fraud dropping by 13% and 9% in value, bringing the total cost of fraudulent activity in these areas in 2019 to £116m and £29m respectively.
Mr Williams added: “We know that these figures are the tip of the iceberg and as many as one in five frauds go unreported, with businesses often keen to avoid the reputational damage that fraudulent activity can bring.
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"With third-party and employee fraud increasing in value and many businesses shifting priorities and acclimatising to new ways of working, business leaders and individuals must remain more vigilant than ever.
"It is vital to have a healthy level of scepticism and robust controls and procedures to manage the risk of both internal and external fraud.”