[Benedikt Hoffman, Financial Fraud News Contributor]
International Association for Asset Recovery: The UK government is proving to be a soft touch for fraudsters as it lost taxpayer‘s money to fraudsters to the tune of some £527 million in the period 2010/2011 according to KPMG‘s Government Fraud Barometer published this May.
According to the report, in the past year, there was a 142 percent uplift in fraud incidents against government agencies.
Whereas, the high level of fraud incidents against government agencies had decreased in 2007/2008 as a result of the government’s focus on value added tax (VAT) cheats which led to a high number of prosecutions in that year, but the focus on tax skimming by fraudsters has returned with a vengence according to recent trends.
Around 114 tax fraudsters were prosecuted in the past year in cases representing around £527 million in thefts (up from £277m in 2008/09).
According to Jeremy Outen, UK Head of Fraud at KPMG: “Financial criminals are now becoming more businesslike and methodical ….The current generation of organized crime is targeting fraud – making payment systems, such as banking, tax and benefits vulnerable to attack…..Traditionally, criminals have relied upon physical acts, such as robbery – they can now commit a fraud and achieve the same returns for much less risk. This is fuelling the audacity and ambition of professional criminals, driving up the size of a fraud…..In addition, technology and large scale processing (such as online or call centers) have made large scale frauds easier to accomplish.”
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- Fraudsters nicking $600m from taxpayers (news.theage.com.au)
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- What is Mortgage Fraud? (vaned.typepad.com)
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- UK Government Agency wants your email scams – but is doing it the right way? (nakedsecurity.sophos.com)
- Global fraud costs £2.74tn (premierlinedirect.co.uk)