Fraud expected to 'rocket' despite fall
Reported fraud in the North West has more than halved to £94m in the past 12 months, but experts have predicted it could be the "calm before the storm".
According to accountancy firm BDO’s annual Fraud Track report released today, the cost of North West fraud has fallen below the North East, Midlands and Scotland for the first time since 2007.
Cases from the region included VAT and money laundering frauds, a waste disposal scam, and the case of Lynda Smith who ran up £460,000 of debt from bank loans and overdrafts through a 'frog T-shirt' scam.
Alex Marsden, forensic partner at BDO in Manchester, said: "This fall in fraud doesn't correlate with what we are seeing in the market.
"The volume of cases we are dealing with has increased significantly, but the nature of the cases have changed; they are more complex, often involving technologically advanced schemes with international dealings, and they can take much longer to settle.
"I would expect the downward trend to reverse, with the value of reported fraud to rocket this year."
The finance and insurance sector accounted for 27 per cent of reported fraud in 2011, compared with 56 per cent in 2010. The total value of public sector fraud across the UK has increased from £275m to £844m in the past 12 months and now accounts for less than 21 per cent, BDO added.
Marsden said: "Business fraud can have a severe impact on the bottom line. If businesses fail to put preventative measures in place to minimise the threat, they are running the risk of fraudsters taking home their hard-earned profits."
