The latest results from the KPMG Fraud Barometer have just been published. The bi-annual Barometer identifies the fraud trends and patterns affecting the UK economy which helps the UK remain alert to new threats and respond to fraud risks in an appropriate and proactive manner. 

Key Highlights for 2016 saw £1,137 million of alleged fraud hitting UK courts. This included:

• the total cost of fraudulent activity in the UK has surpassed a billion pounds (£1.1 billion) for the first time since 2011
• there were seven super cases in the year, which have caused the average fraud loss to double to £5.2 million
• 2016 saw the largest cyber fraud since 2008, leading to losses of £113 million
• consumers have turned to bootleg bargains in an apparent attempt to maintain their lifestyles in continuing tight economic circumstances.

As the infographic shows:

Source & Copyright©2016 - KPMG 

Cyberfraud up 1,266% 

The Fraud Barometer recorded a rise in cyber-enabled fraud, up 1266 percent on 2015 figures. The cases include a £113 million cyber fraud, the largest recorded in UK Courts since 2008, as professional criminals cold-called bank customers and stole their money to fund their luxury lifestyle. Sophisticated techniques meant that when victims were contacted by the gang (claiming to be members of the bank’s fraud department and persuading them to reveal security details), they saw false telephone numbers appear under the caller ID, and were unable to make or receive calls whilst their accounts were being drained. The fraudsters made between £1 million and £2 million a week at the scam’s peak and operated like a nine-to-five business using information from corrupt bank insiders.

Other KPMG research shows that cyber crime is now industrialised with profit oriented cyber-criminal enterprises emerging.

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CTMfile take: Remember that this is the alleged fraud hitting UK courts in 2016, not the actual amount of fraud which will be much higher as much fraud goes unreported often because a major source of fraud is internal - see.  To prevent fraud companies need to understand the fraudster and how they operate.