ID theft helps UK fraud hit new high

The Internet helps fraud in the UK hit a 12-year high in 2007

Fraud in the UK hit a 12-year high in 2007, as crooks increasingly turned to the Internet to carry out ID theft, according to KPMG Forensic

Last year, £1 billion of fraud came to court, the highest value since 1995 and the second highest in the 20 years KPMG has been carrying out the report, called the Fraud Barometer. At the same time the number of cases brought to court dropped to 197 from 277 in 2006.

Organized gangs were responsible for £889 million of the takings, nearly 90 per cent of the fraud by value, most of which was through VAT fraud, ID theft and other forms of white collar crime.

The firm said technology has become the new battleground for fraudsters, with much of the danger from ID theft coming from the Internet.

"The sophistication of organized fraud in the U.K. is certainly extremely concerning," said KPMG Forensic partner Hitesh Patel, in a statement. "More fraud cases have been coming to court in recent years than previously, but one fears that this is just the tip of the iceberg. As companies tighten their belts in the harsher conditions and take a closer look at their operations and related expenditure, it is highly possible that a greater number of frauds may be detected."

Patel recommended that companies add anti-fraud analysis tools to their usual monitoring and oversight processes.

The top target of fraudsters was the government, whose agencies were hit by £833 million in fraud, a jump from £221 million in 2006.

ID theft was a major source of fraud, for instance being used in false benefits and tax credit claims. A husband and wife team were responsible for £1.1 million in benefits fraud, claiming benefits for eight adults and 46 children in a one-bed flat in London.

Financial institutions saw the value of fraud against them fall from £140 million in 2006 to £37 million in 2007, while businesses were hit by £24 million in fraud compared to £81 million the previous year.

Employees and management carried out a roughly similar number of frauds - 36 and 34 respectively - but management snagged £54 million, nearly twice the £27 million that employees did.

While technological threats are the latest tool for fraudsters, many criminals' methods were surprisingly low-tech, KPMG said. A Midlands-based gang stole homeowners' identities by posing as would-be buyers, collecting enough details on the house to apply for title deeds from the Land Registry and then remortgaging the properties, coming away with £500,000.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Matthew Broersma

Techworld.com
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?