Fraudsters increase Midlands activity - report
Fraud across the Midlands has quadrupled to £260m in the last 12 months, according to a new report.
BDO's annual Fraud Track report reveals that reported fraud has hiked up from £58m in 2010 to £260m in 2011. The region is also said to have the second highest fraud figures outside of London with 80 reported incidents ranging in value from £50,000 to £110m.
The £110m fraud case involved 20 financial institutions with six men being jailed for their part in a £45m VAT scam.
Sat Plaha, forensic partner at BDO in Birmingham, said: "Although the increase in reported fraud in the UK and the Midlands is worrying, it is not surprising.
"In times of economic uncertainty, there is increased concentration on the bottom line, so fraud is more likely to be uncovered.
"Fraud in the construction industry continues to be very low, representing only 0.05 per cent of reported cases in the Midlands.
"Given that fraud and corruption have been a reality in the construction industry for a long time, it seems more likely that this is due to fraudulent activity not being reported, rather than it not occurring. It will be interesting to see how this changes in the wake of the Bribery Act."
