UK fraud cases hit a 21 year high
A report by KPMG has found that fraud cases in the UK reached a 21 year high in the first six months of 2009. If this figure is replicated in the second half of 2009 then we will see in excess of £1.2 billion in fraudulent activity which is by far and away the highest for over 20 years. Of the 163 cases which went to court in the first half of 2009 the majority involved investors who lost in excess of £321 million between them.
The UK government has been hit to the tune of £153 million and financial institutions make up the balance of £111 million. However, it is the belief of KPMG that this is just the tip of the iceberg and far worse is yet to come with the ultimate cost of the UK recession to take some time to filter through. This would seem to perhaps rubberstamp the worldwide stance against financial irregularities and financial fraud. The need to ensure that conviction rates increase and detection levels are improved if something paramount in the eyes of the UK authorities.
Unfortunately, increased fraud and criminal activity is often an additional downside to an economic downturn and the Internet appears to be playing a more significant role than ever before in this particular field.
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