The number of Midlands fraud prosecutions has fallen dramatically because of the pressures placed on courts by the pandemic.
New figures suggest a fraction of the normal caseload is being heard after restrictions led to the closure and postponement of many court operations.
Research by KPMG shows it comes despite lockdown fraudsters taking advantage of consumer uncertainty.
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During 2020 KPMG said:
- The value of fraud cases seen by Midlands courts dropped by 91 per cent
- The total 海角视频 value of alleged fraud prosecuted in court was down by 36 per cent to £724 million (which included a single £200 million film piracy case) from £1.1 billion in 2019
- Procurement, mortgage, misappropriation of assets, and counterfeit goods fraud are on the rise
- Fraudsters have adapted to Covid-19
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KPMG’s research said 25 cases with a combined value of £59.8 million were heard in Midlands’ courts last year – 12 in the East Midlands and 13 in the West Midlands – compared to 67 cases totalling £684 million in 2019.
The business advisory specialist said although the value and volume of cases had dropped, the types of fraud committed generally remained on a par with the previous year.
Commercial businesses were the main victims in 2020, although there was a drop in the number of fraud cases against government bodies.
Julie Bruce, forensic director at KPMG in the Midlands, said: “Considering many of our regional courts were temporarily closed due to the pandemic, it’s no surprise that the volume of cases has dropped.
“However, this also suggests that the true extent of fraud committed across the region is yet to come to light, particularly given everything going on in the world at the moment.
“Commercial businesses were the most common targets locally and with many experiencing pressures and uncertainty in the current environment, the risk of fraud by employees in businesses will only continue to increase.
“The methods that criminals are using to extract either data or cash are ever evolving, so businesses must be vigilant and ensure protective measures are in place and that any controls are effective and regularly tested and monitored.”
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Notable cases to reach the region’s courts included three Warwickshire conmen who claimed £29.5 million in tax relief against a fake project and a Leicestershire lawyer and a colleague who tried to sell £3 million worth of properties that they did not own.
A big Shropshire case came after a senior charity worker stole £184,000 to pay off credit card bills.
KPMG’s annual Fraud Barometer – which records fraud cases of more than £100,000 reaching 海角视频 courts – reported a 51 per cent drop in the 海角视频 volume of cases heard in 2020 from 369 to 180.
During the Covid-19 pandemic the value of alleged fraud cases was less than £724 million, down from £1.1 billion in 2019.
That included one film piracy case – which if the fraud had been successful could have cost the industry £200 million – nearly doubled the value of fraud committed up to July 2020.
Roy Waligora, head of 海角视频 Investigations at KPMG said: “As we reflect on the 2020 fraud data, the brewing backlog of untried cases continuing to build up like water behind a dam cannot be ignored.
“Businesses and the general public must be cognisant of the fact that the drop in both the value and volume of fraud cases is not reflective of a downturn in economic crime, but rather fallout following the Covid-19 lockdown restrictions on the courts.
“We know that disruption and uncertainty make for inviting economic components for fraudsters. Covid-19, coupled with Brexit, which tipped the scales towards the end of 2020, means that 2021 will remain at high risk for fraud and economic crime.
“While a tsunami of fraud is still expected to hit the courts in 2021, it is evident that progressive measures, such as virtual courts, being put in place to manage the upcoming cases will likely ease the backlog.”