max temp: 13°C

min temp: 12°C

ESTD 1874 Search

East Anglia: BDO study reveals soaring fraud levels

12:58 13 January 2013

Richard Shave, forensic director at BDO in the East of England

Richard Shave, forensic director at BDO in the East of England

Indusfoto Ltd

FRAUD in the East of England totalled £37.5million las year, compared with just £3.6m in 2010, according to BDO’s annual Fraud Track research.


The accountancy and business advice firm’s analysis, which examines all reported fraud over £50,000, identified 24 cases in the region.

And Richard Shave, forensic director at BDO in the East of England, said there was still concern that most business fraud was not reported, with business owners unwilling to involve the police unless absolutely necessary.

“With that in mind, the true cost to the region is likely to be even higher,” he added.

“There are many large corporates based in the East of England that are vulnerable to fraudsters and taking advantage of their internal control weaknesses.

“Most frauds could be prevented by some simple and robust control measures that are far too often overlooked in the race for increased revenues and profits.”

Across the UK, the value of total reported fraud in 2012 has fallen by a third to £1.37billion. However, tax fraud, totalling £603m alone, has doubled in the last two years.

This year’s Fraud Track figures show that VAT fraud alone accounts for 41% of the total UK fraud figure. The current UK VAT gap – the theoretical difference between what the Government expects to collect in sales tax and what it actually collects – is around £10bn, with fraud accounting for approximately one third of this figure.

That equates to £3.3bn missing from the public purse every year, which BDO says is equivalent to at least 1p off the effective rate of tax for every UK taxpayer.

Mr Shave added: “The fact that tax fraud, and VAT fraud in particular, accounts for such a high proportion of overall fraud suggests that this is an area which would benefit from greater resources at HMRC.”

Having dominated fraud figures in the last few years the finance and insurance sector appears to have made substantial strides towards combating fraud, reporting its lowest level of fraud in five years at almost £500,000 in 2012.

Topping the tables as the industry most susceptible to fraudulent activity is public administration (£615m).



The Haven Power team who play in the Suffolk FA Monday night Football league

Business electricity supplier Haven Power is once again sponsoring the Suffolk Football Association (FA) Monday Night Football League in Ipswich.

Suffolk Yacht Harbour is celebrating the launch of its new workshop

An independent marina on the River Orwell is celebrating a major expansion.

Peter Osborne, General Manager, Brudenell Hotel, Aldeburgh.

A privately-owned hotel on Aldeburgh seafront is celebrating after it was awarded a coveted AA Silver Star Award for 2015.

Delegates from the ABP Marine Conference at ABP, Old Custom House, Port of Ipswich.

Some of best marine minds in the country were in Ipswich this week as harbour masters, dock masters and marine managers gathered for an annual conference.

DFS is celebrating record results.

Sofa chain DFS Furniture has hailed a record set of results as Britain’s buoyant housing market and growing consumer confidence boosted sales.

The Bank of England Monetary Policy Committee is expected to keep interest rates at 0.5%.

The Bank of England is expected to keep interest rates on hold today amid mounting concern over a slowdown in the economy.

Owner and head chef of Sweet P's, Pierre Rollins.

Soul food restaurant Sweet P’s is due to reopen next week after a devastating kitchen fire six months ago.

The new board members at employee-owned social enterprise Leadiing Lives who were elected at its AGM.

More than 50 jobs have been saved in Suffolk and north-west Essex following the closure of care support charity Crossroads Care East Anglia.

The Great House in Lavenham has been awarded three rossetts from the AA. Left to right, Martine and Regis Crepy, Enrique Bilbault, Swann Auffray, David Castro, Guillavme Dericq.

An award-winning Suffolk restaurant has officially been recognised as one of the best in the country.

George Bradley of Suffolk Secrets.

The belated arrival of settled weather in mid-September has helped to deliver an “Indian Summer” boost for Suffolk Secrets, one of the county’s leading holiday lets businesses.

Most read

Most commented

Topic pages