Overcast

Overcast

max temp: 16°C

min temp: 11°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

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

Frank Brumby, eastern region chairman of R3.

East of England business victims of late payment saw more than one in six (16%) of their invoices paid late in the last six months, according to research by insolvency trade body R3.

Sarah Howard, president of Suffolk Chamber of Commerce, and Mark Pendlington, chairman of New Anglia Local Enterprise Partnership, at the celebration marking the first year of work by the New Anglia Growth Hub.

Supporters and staff from the New Anglia Growth Hub today celebrated its first year of work.

B&Q parent Kingfisher said it was ploughing on with a shake-up plan

B&Q parent Kingfisher said today it was ploughing on with a shake-up plan “at pace” as it reported a first quarter slide in sales at the DIY chain.

The new Escape lounge at Stansted Airport.

A new business lounge at Stansted Airport has been used by more than 9,000 visitors in its first month.

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Angus Berry, energy manager at Thames Water, and Richard Robey, sales and marketing director at Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Retail sales are

Retail sales are “bounding ahead” as falling prices and a boost to consumer spending power is giving retailers the most upbeat outlook for 27 years, according to new figures.

A Ryanair passenger plane after take off from Stansted Airport.

Budget airline Ryanair saw profits growth take off last year as a revamp designed to improve its image and attract business customers sent earnings soaring by 66%.

The New Anglia Growth Hub team, including its business growth advisers who offer free support to businesses in Suffolk and Norfolk.

New Anglia Growth Hub has beaten its target of providing support for 3,000 businesses in its first year.

Andrew Rowe, managing director of Concertus.

Andrew Rowe, managing director at Ipswich based Concertus Design & Property Consultants, has been appointed as finance director for SPACES, the new society that has been formed from a merger between SCALA (Society for Construction and Architecture in Local Authorities) and SCEME (Society of Electrical and Mechanical Engineers serving Local Government).

Most read

Most commented

Topic pages