- with readers working within the Securities & Investment industries
Niall Hearty of Rahman Ravelli considers the reported rise in fraud trials.
New research indicates that more fraud cases are making their way to Crown Court. The recently-published KPMG Fraud Barometer shows that 122 fraud cases were heard in Crown Courts in the first half of 2024. The figure for the same period in 2023 was 105. But despite the increase in fraud cases in court, the research states that the total value of fraud involved was £305 million – down 14% on the total for the same six-month period last year.
The research says that money laundering was the most common fraud type by value going to trial in the last six months. Nine cases of money laundering, involving a total of £128.2 million, were heard in the first six months of 2024.
KPMG's report says the public sector has been "the biggest victim of fraud in terms of value so far in 2024". A total of 26 fraud cases related to state funds have been heard. These have a combined value of £193.4 million – a 30% increase on the same period in 2023.
Positive
It is clearly very positive news that an increase in cases reaching Crown Court has occurred over such a short period. This could be due to a combination of more effective identification of fraud - particularly in the public sector - and a more pro-active approach by central government on this issue. The criminal courts may also finally be sifting through the post-pandemic backlog of cases, which will inevitably include fraud prosecutions.
Roy Waligora, head of UK Investigations at KPMG, stated that money laundering remains a problem because the complex nature of financial systems means they can be exploited by those looking to make illegal gains.
A recent report by the National Audit Office (NAO) stated that it takes an average of 683 days from an offence being committed to the case being concluded at Crown Court. While a greater focus on fraud in the public sector may have contributed to more effective identification and prosecution of fraudulent activities, this proactive approach may also result in a higher number of similar cases being seen during the second half of the year.
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