Partner Article

Value of fraud cases in the North East more than halves

KPMG’s latest Fraud Barometer shows that the value of fraud cases seen in Crown Courts across the North East during 2014 has more than halved, dropping to £13.6 million from £29.9 million in 2013.

However the number of cases has remained static, with 22 cases per year occurring in both 2013 and 2014, meaning the number of victims holds steady while the average case value has dramatically dropped, to £617k.

Cases recorded in the second half of 2014 in the region included:

· An insider within a rail company who led a gang which stole copper cable, causing losses of £500k as well as endangering lives and risking disruption.

· A woman who sold counterfeit designer handbags to the value of £400k and laundered cheques before spending the proceeds on a luxury lifestyle.

Forensic senior manager at KPMG in the North East, Sara Smith, said: “The fraud landscape across the region has been dominated by opportunistic cons and thefts at sub £1 million levels, with a fall seen in activity by professional fraudsters.

“In particular there has been a rise in the number of employees finding themselves in a position to address debts or lifestyle aspirations at the expense of their employer.”

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