BUSINESS groups have warned of a significant increase in management fraud after it was revealed that the cost of fraud in the UK has doubled to £73 billion in a year.
A report by the National Fraud Authority (NFA) said the crime costs every UK adult almost £1500 a year – around twice the amount shown in the last report.
The Annual Fraud Indicator also showed the private sector suffered losses of £45.5bn, while the public sector lost £20.3bn and charities lost £1.1bn.
Accounting firm KPMG claimed the increases could be linked to a 74% increase in frauds by bosses in 2011 –the result of executives attempting to overcome the economic downturn.
Ken Milliken, of KPMG Scotland, said: "Senior management operate in a privileged position of trust and authority that is placed in them, with an increasing number now committing fraudulent offences by virtue of the ease with which they are able to override internal controls and avoid scrutiny.
"This, and the increased sophistication of fraudsters generally, makes the case for a strong collective strategy to prevent and detect fraud at a wider level."
The Institute of Directors in Scotland added that the increase in management fraud could be a reflection of "challenging financial times".
David Watt, the IoD's executive director, said: "It goes without saying that fraud is likely to increase in difficult times – income is falling while bills continue to rise so perhaps people see this as an easy option, but it doesn't excuse it."
However, the NFA said the increase could be linked to better estimating techniques. The report also revealed that Britons lost £1.2bn through identity fraud last year, while benefit and tax credit frauds accounted for £1.6bn.
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