The number of fraud cases heard in the South West鈥檚 courts has more than tripled in the first half of 2021 with the overall value of cases more than doubling to 拢7.4m.
Of the 18 fraud cases heard in court between January and June 2021, four involved alleged fraud above 拢1m in value. Professional criminals were the most common class of fraudster, responsible for eight of the 18 cases and involved in alleged fraud totalling almost 拢3.5m, figures from KPMG 海角视频鈥檚 Fraud Barometer reveal.
As observed during 2020 the typical fraudster was middle-aged or older. In contrast to the equivalent period in 2020, when women were involved in just over half the fraud cases, there was a marked fall with only three of the 18 cases in the first half of the year involving women defendants.
Whilst commercial businesses were the most common victim of fraud in 2020, so far in 2021 the public have been the most common victims. Nine of the cases heard in court arose through fraud against individuals, including three of the frauds above 拢1m in value. Businesses and Government organisations suffered alleged losses from fraud totalling nearly 拢1.4m and 拢1.2m, respectively.
Damian Byrne, forensic lead for KPMG in the South West, said: 鈥淟ast year鈥檚 dip in fraud cases heard in courts across the South West region was, at least in part, due to the disruption to the legal system caused by the Covid-19 pandemic.
鈥淭he increase in fraud cases thus far in 2021 may continue as fraud risk remains high due to the combination of financial and other factors arising from the pandemic that increases vulnerability and creates opportunities for fraudsters.
鈥淥ur research shows both individuals and businesses remain at risk of fraud, particularly from professional criminals. As the economic recovery continues we anticipate attempts at fraud will remain high so it is important that organisations and members of the public alike remain vigilant.鈥
Case studies to reach the region鈥檚 courts during the past six months include:
- A finance manager who abused her position to steal about 拢100,000 a year from her employer. In total the individual stole almost 拢1m and used the money to pay for holidays, her son鈥檚 university fees and a mortgage on a property owned by her mother. The fraudster鈥檚 dishonesty was described at court as 鈥渟tartling in its depth and persistence鈥.
- An unlicensed financial adviser who tricked his elderly and sometimes dying clients out of more than 拢1.2m in a series of fraud spanning more than a decade. Despite the individual vowing to invest his client鈥檚 life savings, he instead spent most of the money on holidays, gambling or to pay off his debts.
- A courier who posed as a 鈥渟pecial G4S agent鈥 to collect 拢845,000 worth of gold bullion from an elderly couple. The victims had been duped by another conman who claimed that their bank account was compromised and advised them to convert their life savings into gold bullion.
Nationally, the number of alleged fraud cases being heard in 海角视频 courts in the first half of 2021 almost doubled compared to the same time in 2020.
KPMG 海角视频鈥檚 Fraud Barometer found 151 alleged fraud cases were heard in the first six months of the year, as courts used a mix of virtual and face-to-face sessions to start the catch up with the backlog created by Covid restrictions.
Government figures stated in June 2021 that at the end of Q1 2021 there were more than 59,000 outstanding cases for crown courts and just under 400,000 for magistrates鈥 courts.
The barometer figures, which record alleged fraud cases - not including online fraud - with a value of more than 拢100,000, saw the total value of alleged fraud reaching 海角视频 courts in the first half of 2021 fall significantly (70%) year on year, standing at 拢139.1m.
In total, 36 cases of alleged fraud worth more than 拢55m targeting the Government appeared in court in the first half of 2021, compared to 拢78m across 19 cases in the same period of 2020. Two large cases were seen in the first half of 2021, one 拢12m counterfeit currency case and the other an immigration fraud totalling 拢20m.
This reported value seems relatively small compared to perceptions of high fraud levels for Covid financial support, KPMG said. According to the latest Public Accounts Committee Fraud and Error Report, the Bounce Back Loan (BBL) scheme initiated by the Government to support businesses through the pandemic, could potentially see up to 拢27bn never repaid due to fraud or credit risks.
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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With the dropping of basic fraud and error checks when paying out Covid loans, the report points out the exposure to fraud has increased significantly and a rise in such cases in the near future is strongly anticipated. The Fraud Barometer figures are also starting to see the first cases of furlough fraud for more than 拢100,000.
According to the figures, the number of procurement frauds heard in courts in the first half of 2021 was up 400% from just three cases heard in the first half of 2020 (with a value of 拢2.6m) to 15 cases heard in the first half of this year with a value of 拢9.5m. The figures also revealed embezzlement fraud had increased (15 cases worth 拢8m in 2020 vs 26 cases worth 拢15.9m in 2021), including the case of a company secretary who was jailed for five years for stealing 拢1.7m from her employer to fund a horse-buying habit.
