Gavin Hinks, Accountancy Age, Monday 9 August 2010 at 09:03:00

Barometer sees mortgage fraud rocket


Managers commit bigger frauds than employees with an average fraud size of£4m, according to the latestKPMG Fraud Barometer report.

Covering the first six months of this year the report found 32 cases ofmanagers against 47 by employees, but the managers fraud totaled £135m in valuewhile employees attempted to get away with £45.

The report said: ?At an average value of over £4 million per case compared to£1 million per employee case, managers are clearly able to carry out largerfrauds due to their positions of greater authority and the trust they areafforded.?

The Barometer measures fraud cases appearing in UK courts. The first half of2010 saw 166 cases with a total value of £608.5m ? down 4.3% on the first halfof 2009. Though the figures for last year were inflated by a single case worth£200m. This year the biggest case was £60m.

Mortgage fraud has quadrupled year on year and accounts for nearly half ofall fraud committed against the financial sector.

Hitesh Patel, partner, KPMG Forensic said: ?The fact that increasing amountsof mortgage fraud are being prosecuted is cold comfort for the financialservices industry. Clearly, more of it is coming to light and more will follow.It is highly probable that the issue is far bigger than our figuresdemonstrate.?

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