In 2022, the UK witnessed a significant increase in the value of fraud cases, as reported by KPMG UK’s latest Fraud Barometer. This year has seen a startling rise to £1.12 billion in fraud value, marking a 151% increase compared to the previous year. This blog post delves into the critical findings of this report, highlighting the changing landscape of fraud in the UK.
Dramatic Increase in Fraud Value The total value of fraud cases in UK courts surged from £444.7 million in 2021 to £1.12 billion in 2022. This increase brings the fraud value close to pre-pandemic levels, equalling the £1.1 billion reported in 2019, indicating a return to pre-COVID-19 fraud patterns.
A Decrease in Case Volume but an Increase in Case Value Although the volume of fraud cases decreased by 27%, the value of these cases significantly increased. This trend suggests a shift towards fewer but more high-value fraud cases, with five cases in 2022 each valued at over £50 million, contributing to over half the total fraud value.
Fraud Cases Against Financial Institutions Fraud cases against financial institutions halved in number but increased dramatically in value by 2204% to £609.2 million. This stark increase in value despite fewer cases highlights the growing sophistication and scale of fraud targeting financial institutions.
The Underlying Trends and Implications The report indicates a worrying trend of high-value frauds, overshadowing the decrease in overall case numbers. This change points to a need for enhanced vigilance and more robust fraud prevention measures, especially in the financial sector.
Conclusion: The 2022 KPMG Fraud Barometer report sheds light on a concerning shift in the UK’s fraud landscape, with a substantial increase in the monetary value of fraud cases. This trend underscores the critical need for continued efforts in fraud detection and prevention, particularly in high-risk sectors such as finance. As we move forward, understanding and adapting to these evolving fraud patterns will be key in mitigating risks and safeguarding against financial crimes.
Find out more here.