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31 January 2006
The cost of financial fraud to the UK nearly trebled over the course of 2005 says a new report.
Fraud such as ID theft cost the country £942 million last year, the highest level since 1995 and drastically up from the £329 million recorded in 2004.
The government remains the biggest victim of fraud, but financial institutions recorded the greatest increases in cases - with card fraud, identity fraud and false cheques costing them £360 million, up from £37 million in 2004.
The figures reflected both a greater incidence of financial crime and a greater willingness to prosecute, said accountants KPMG, who compiled the report.
"There has been a worrying boom in fraud in recent months, although the good news is that we know this because the fraudsters are being successfully brought to book," said Jeremy Outen, partner at KPMG Forensic.
"Criminal gangs appear to be very active with aggressive stings, while in the private sphere internal frauds to fund excessive lifestyles or to pay off burgeoning debts shows no sign of abating.
"With both the number and the average value of frauds increasing, companies and individuals need to be more watchful than ever," he added.
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