Overcast

Overcast

max temp: 11°C

min temp: 9°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.

shares

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).

shares

0 comments

developer John Howard

Town centre homes plans for important Ipswich town centre site close to the Waterfront

Matt Hampson
, founder of the Matt Hampson Foundation, which is being supported by Adnams through sales of its limited edition beer Prop Hop.
Photo: Jason Bye

Southwold brewer Adnams has reintroduced its limited edition beer Prop Hop to coincide with the start of this year’s Six Nations rugby championship.

Sam Parnell and Max Shelley of Measured Brilliance

Digital Marketing ‘meetup’ group SIMS teams up with Measured Brilliance and Ipswich Borough Council to help businesses in 2016.

Oil and Gas platform

The energy industry in the East has issued a high-level plea urging the prime minister to support the region “as a matter of urgency”.

Alistair Lang, chief executive of Gotelee Solicitors.

Suffolk law firm Gotelee Solicitors is to expand after agreeing a merger deal involving three offices of Margary + Miller.

Most read

Fred Olsen Travel Sale

cover

Click here to view
the Fred Olsen
Travel Sale

View

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Great British Life

Great British Life
MyDate24 MyPhotos24