Company fraud grows 50 per cent to hit a record £2bn, says new report

COMPANY fraud hit £2bn for the first time in 2011 – up 50 per cent on the previous year – a survey published today reveals.

The 2011 FraudTrack report by accountants BDO – which collates data from all reported fraud cases over £50,000 – shows a dramatic rise in both the number and average value of reported cases.

There were 413 cases, at an average value of £5m, compared with 372 cases in 2010 at an average value of £3.7m.

There has been a boom in reported fraud in the retail sector, which accounted for 12 per cent compared of the total with just two per cent in 2010.

But the finance and insurance sector only account for 27 per cent of compared with 56 per cent in 2010.

The construction sector represents just one per cent of all reported fraud, compared with 34 per cent last year, the report found.

Tax offences account for the highest percentage of fraud committed, at just over 36 per cent.

Employee fraud is down to 10 per cent from 14 per cent last year last year. The average per fraud is £1.4m.

BDO’s annual survey was launched in 2003 when the total fraud tally was £331m. Simon Bevan, head of fraud at BDO said: “The fact that reported fraud is up is worrying, but not at all surprising given the difficult economic climate.