UK Corporate Financial Fraud Cases Soar to Record High
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A new report has revealed that reported cases of corporate financial fraud in the UK have reached an alarming high, with the value of Britain’s total reported fraud reaching a staggering £2.3 billion.
A 104% Increase Compared to 2022 Figures
The report by BDO, titled FraudTrack 2024, shows a significant increase in fraudulent activity compared to 2022 figures. This marks the second-largest annual fraud total in the past decade. Corruption was the largest type of fraud by value, accounting for £594 million, or 26% of the total.
Top Types of Frauds
- Corruption: £594 million (26% of the total)
- Tax Fraud: 23% of reported UK frauds in 2023
- Other types of fraud: [insert other types]
Expert Warnings
Experts warn that the trend is likely to continue as artificial intelligence and advanced technology provide new opportunities for fraudsters. Kaley Crossthwaite, Partner at BDO’s Forensic Accounting and Valuation Services, said: “Rising fraud is a trend likely to continue. The numbers are alarming, and it’s clear that the number of cases covered by our study is likely to be significantly below the true levels of fraud within the UK.”
Low Reporting Rate
Despite the increase in reported fraud cases, fewer than one in seven fraud offenses were reported to the police or national fraud reporting centre Action Fraud in 2023. This highlights the need for greater awareness and reporting of fraudulent activity.
Hotspots for Fraud
The report found that London and the South East were the hotspots for fraud in 2023, accounting for 73% of the total monetary value reported. The East Midlands saw a significant increase in fraud cases, leaping from 12th to second place. Yorkshire was also ranked as one of the top five hot spots for fraud.
Socio-Economic and Geo-Political Factors Contributing to Fraud
The study highlighted the role of socio-economic and geo-political factors contributing to the overall increase in fraud, including:
- Rising energy bills
- Inflation
- Global supply chain cost rises
- Technological advancements enabling fraud
Technology Enabling Fraud
The report also highlighted the increasing use of technology in fraudulent activities, including online scams and fraudulent Authorised Push Payment transactions.
Call to Action
Experts warn that individuals and businesses must be aware of the increasing threat of fraud and take steps to protect themselves. Oz Alashe, CEO of CybSafe, said: “It’s crucial that businesses create an open and honest security culture that promotes reporting cyber concerns without fear of reprisal.”
Conclusion
The figures are a stark reminder of the need for vigilance and action against corporate financial fraud. The UK government’s Online Fraud Charter is a step in the right direction, but more needs to be done to combat this growing threat.