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Dramatic fall in mortgage fraud

In 2010, the UK fell victim to more fraud cases than ever before, according to KPMG’s Fraud Barometer, with 42% of all cases (totalling £571 million) levelled at the public purse.

However, mortgage fraud, which was rife in the first half of 2010, plummeted, between July and December.

Cases dropped from 21 to 13 (£96 million to £12.4 million), suggesting that more organised mortgage fraud is now being tackled head on by the UK’s lenders.

Overall, the volume of UK fraud cases snowballed last year, with 314 incidents reported (totalling £1.374 billion), the highest level ever recorded in the 23-year history of the firm’s Fraud Barometer.

Fraudulent activity by management increased by 20% year-on-year, to £419 million, although professional criminals remain the biggest threat to the UK.

KPMG forensic partner, Hitesh Patel, explains: “Professional gangs are the chameleons for the fraud world: constantly changing their colours to constantly creep one step ahead of technological development, exploiting business evolution for nefarious ends.”

One case in the Midlands involved a DJ accused of a credit card scam on the iTunes website that allowed him to claim just under £469,000 in royalties.

Mr Hitesh comments: “The need for ever more effective techniques to combat fraud grow greater by the day.”

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