New data released by KPMG UK’s mid-year Fraud Barometer reveals that money laundering has emerged as the most prevalent type of fraud by value in the last six months. According to the report, nine money laundering cases have been brought before UK Crown Courts, totaling £128.2 million in losses. This marks a significant development in combating illicit financial activities, especially in a country often cited as a hotspot for such crimes.
The study, which focuses on fraud cases with values exceeding £100k heard in UK Crown Courts, has identified a total of 122 fraud cases in the first half of this year, up from 105 cases during the same period in 2023. Despite an increase in the number of cases, the overall value of fraud has actually decreased by 14% to just over £305 million compared to the previous year’s total of £354.2 million.
Roy Waligora, Partner and Head of UK Investigations at KPMG, noted the ongoing challenges posed by money laundering due to the complexity and sophistication of financial systems that can be exploited for illegal activities. He also highlighted the potential impact of the new requirement for overseas entities to be registered at Companies House on prosecuting more cases related to this crime.
In terms of victims, the public sector has borne the brunt of fraud so far in 2024, with 26 cases related to the government worth £193.4 million, a 30% increase from 2023. The general public has also experienced significant losses, with 41 cases totaling £33.2 million heard in UK courts during the first half of this year.
Waligora emphasized the importance of focusing on fraud in the public sector, which may have led to more effective identification and prosecution of fraudulent activities against the government. He anticipates that this proactive approach will result in a higher number of similar cases being seen in the second half of the year, despite the pressure on UK courts to handle high volumes of fraud while addressing other criminal activities.
Account takeover fraud has emerged as the most common type of fraud in terms of volume in 2024, with 16 cases amounting to £7.2 million reaching UK Crown Courts. This is closely followed by fraud related to counterfeit goods and embezzlement cases. Waligora highlighted the increasing sophistication of account takeover fraud methods and underscored the importance of bringing these criminals to justice, citing the high number of unprosecuted cases reported by UK Finance.
Overall, the data from KPMG’s Fraud Barometer underscores the ongoing challenges and efforts to combat various forms of fraud in the UK, with a focus on enhancing fraud management procedures and prosecution mechanisms.
