According to recent findings from KPMG UK’s mid-year Fraud Barometer, money laundering has emerged as the most prevalent type of fraud in terms of value over the past six months. It is encouraging to note that nine cases involving this criminal activity, totaling £128.2 million, have been brought before UK Crown Courts in 2024. With the UK being identified as a hub for illicit finance, the increased prosecution of suspected money launderers is a positive development.
The research, which focuses on alleged fraud cases with a value exceeding £100k heard in UK Crown Courts, indicates a total of 122 fraud cases were heard in the first half of the year. This represents a rise from 105 cases during the equivalent period in 2023. Despite this increase in the number of cases, the total fraud value has seen a 14% decline from the previous year, standing at just over £305 million in 2024 compared to £354.2 million in 2023.
Roy Waligora, Partner and Head of UK Investigations at KPMG, highlights the persistent challenge of money laundering in the UK due to the complexity of financial systems that can be exploited for illegal activities. He also points out the potential impact of the recent requirement for overseas entities to be registered at Companies House on the number of money laundering cases reaching the courts.
In terms of fraud victims, the public sector has been the hardest hit in 2024, with 26 cases related to the government totaling £193.4 million, a 30% increase from the same period in 2023. Additionally, the general public has suffered from 41 fraud cases amounting to £33.2 million during the first half of the year.
Waligora comments on the effectiveness of targeting fraud in the public sector, which has resulted in better identification and prosecution of fraudulent activities against the government. He anticipates a potential increase in similar cases during the second half of the year. However, he notes the challenges faced by UK courts in handling high volumes of fraud cases while also addressing other serious crimes.
Account takeover fraud has been identified as the most common type of fraud by volume in 2024, with 16 cases worth £7.2 million reaching UK Crown Courts. This is followed by fraud related to counterfeit goods and embezzlement. Waligora emphasizes the increasing sophistication of methods used in account takeover fraud and the importance of prosecuting these criminals, given the high number of such cases reported by UK Finance in 2023.
In conclusion, the ongoing efforts to address various types of fraud in the UK, particularly money laundering and account takeover fraud, are vital in maintaining the integrity of the financial system and protecting businesses and individuals from financial crimes.
