News

Selection of news relating to the card industry courtesy of FINEXTRA and more news related to card fraud and the conference

Financial News Headlines courtesy of Finextra:

Fraud nears record levels in 2008 – and worse to come, says KPMG

Author: Paul
Date: 02 Feb 2009

Here is an interesting item of news from KPMG - as we suspect the level of fraud is set to rise in the recession - yet more reason to attend this year's conference!

 

Fraud nears record levels in 2008 – and worse to come, says KPMG

Forensic 02 February 2009

 

  • Over £1.1bn of fraud comes to court – second highest level in 21 years
  • Full impact of credit crunch on fraud is yet to be seen
  • Rising company insolvencies heighten fraud alert
  • Fraud by managers, employees and customers trebles
  • But Government losses to VAT ‘carousel’ fraud significantly down

More than £1.1bn of fraud came to UK courts in 2008 according to KPMG Forensic’s Fraud Barometer – the highest level recorded since 1995 and the second highest in the twenty-one year history of the survey. Fraud by professional gangs remained at the extremely high levels seen in previous years (£800m in 2008), but there was a marked increase in fraud by individuals. Taken together, company managers, employees and customers were tried for some £300m of fraud last year, three times the value seen in 2007.

KPMG warns that the worst is yet to come: the bulk of the fraud committed since the credit crunch began in August 2007 will most likely not yet have come into the public courts. The Fraud Barometer’s records show that in the last recession of the early nineties the full peak of fraud in the courts was not reached until 1995.

Full story at:http://www.kpmg.co.uk/news/detail.cfm?pr=3334

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