The total amount of fraud in 2011 topped £3.5billion – a record year – according to KPMG’s Fraud Barometer, as Britons across the country continue to struggle with tough economic conditions.
Some £2.5billion worth of fraud was recorded during the second half of the year – including five large fraud cases of more than £50million each coming to court.
Hitesh Patel, KPMG Forensic Partner said: "2011 was an extraordinary year for fraudsters – as demonstrated by the record losses through large-scale cases of fraud which dominated the headlines.
"The economic uncertainty has been the double edged sword behind these numbers: companies and government agencies have rooted out more fraud through implementing austerity measures and operational changes while at the same time the pressures on individuals as a result of the downturn continues to act as a catalyst for more fraud being perpetrated.
"These figures represent the thin edge of a much bigger wedge."
Government and the public purse continues to be a target for fraudsters, with the sector having had the highest number of cases (68) recorded to the value of £1,097,979,711.
Patel said: "At a time when the country is battling with a huge deficit the dual assault on social welfare and infrastructure budgets is far from a victimless crime. It is a problem that affects us all as funds are deprived from the front line leading to higher levels of taxation, insurance costs and prices for products and services."
As the largest perpetrators of fraud, professional criminals accounted for 98 cases totalling £1.4billion worth of economic crime. They have adapted quicker than most to exploit financially vulnerable individuals and organisations as a result of the economic downturn.
Patel said: "Their illegal activities have a corrosive impact on the civil society. The proceeds from white collar crime such as sale of counterfeit goods and financial fraud are often redeployed to more serious nefarious activities such as human and drugs trafficking and terrorism among others."
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