UK fraud cases hit record high due to surging cyber attacks

World - Mohit Shah - Jan 25,2017

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uk fraud cases hit record high due to surging cyber attacks

According to a report by accountancy giant KPMG, the value of supposed fraud cases reaching U.K. courts in 2016 combined to a total of £1.1 billion ($1.36 billion).

The increasing risk of cyber attacks along with large-scale scams is threatening businesses. As per a report offered by KPMG, there is a 55 percent year-on-year rise in the value of frauds as compared to the figures of 2015.

Although the cost from fraud cases in the U.K. was much greater than the previous years, the count of incidents was lower.

In a note, U.K. forensic partner at KPMG, Hitesh Patel, said that we can expect more of these super frauds as tough economic circumstances place pressures on individuals and businesses and as technology grows more sophisticated. He further added, this condition is going to put even more stress on law enforcement agencies who do not possess the resources to investigate every fraud report that they receive.

KPMG cited that £900 million of fraud originated from just seven super cases; the value of the super case in 2015 was noted to be £250 million.

The U.K. based accounting firm stressed that the rapid increase of super cases in the recent years might be due to fraud being an advantageous and practical proposition for those with plentiful technological abilities.

The analysis by KPMG identified that forged activities against U.K. businesses were up seven-fold considering the previous year. The most common form was noted to be internal fraud committed by management and individuals, which impacted business operations.  

"This places much more emphasis on businesses and consumers to protect themselves from fraudsters," said Patel.

Recently, Lloyds Banking Group declared it would be working with law enforcement agencies to spot who may be behind a recent cyber attack.