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BDO Stoy Hayward Annual Survey 2008

Fraudtrack 5 - Fraud: A Global Challenge

This year marks the fifth year of our FraudTrack research - new research shows that the number and value of business fraud cases going through the criminal courts is falling dramatically, and it warns that UK PLC are losing faith in the police in combating fraud by employees and executives.
This year, we identified 267 reported cases of business fraud (worth above £50,000) with a total value of £1.04 billion. This compares to 2006, when it identified 295 cases with a value of £1.37 billion, a reduction of 24 per cent. When large VAT frauds (against the Treasury) are removed, the figures are even starker, with non-VAT fraud cases of just £496 million reported in 2007 (compared to £913 million in 2006 – a fall of 46 per cent).
About 87 per cent (£432 million) per cent of these non-VAT frauds were reported by business in the financial services sector, with all other sectors of the economy accounting for only 13 per cent of reported (non-VAT) frauds. This means that organisations employing well over 80 per cent of the UK workforce are only reporting 13 per cent of fraud by value.
About the FraudTrack research:
FraudTrack has been produced by BDO Stoy Hayward since 2003 and is based on all reported fraud cases involving businesses of over £50,000 during the period from 6 December 2006 to 31 November 2007. The sources for the database include: The Serious Fraud Office, the Department of Trade and Industry, the Metropolitan Police and the UK’s national, regional and local press. The data for 2007 represents 267 cases of fraud with a total value of £1.04.bn for the past year.

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