Old fashioned 'low tech' fraud techniques are making a comeback as companies tighten their defences against 'high tech' online attacks, according to KPMG research which identifies a high volume of lower value frauds during 2013.
KPMG's bi-annual Fraud Barometer shows that the average value of fraud cases prosecuted in the past year was £2.9m, compared to £6.1m over the last five years, while the majority (96%) were for amounts below £10m. The total value of fraud cases which went through UK courts last year rose only 0.5% to £828m.
Hitesh Patel, UK forensic partner at KPMG, said: 'As old forms of transactions, such as cheques, are phased out, organisations are focussing on developing sophisticated lines of defence. Yet, rather than putting criminals off, many fraudsters are ignoring the challenge of triumphing over technology in favour of using simpler methods of deception.'
Examples include the local government employee who processed cheques for legitimate payees, using disappearing ink. She secured the signatures of senior management for cheques reaching a total value of £162,000 and waited for the 'payee' details to disappear before substituting them with her own name.
In another case worth £20m a businessman paid a series of worthless company cheques into an account based in the UK. He, and the gang involved, succeeded in transferring three-quarters of the funds into a foreign account before suspicions were raised and the account was frozen.
KPMG's research identifies a resurgence of cases involving tax rebates, loans and mis-selling, which together accounted for over £343m of fraud, up from £41m in the previous 12 months.
Online fraud examples in the survey include a gang who stole £1.3m by taking control of a bank's branch computer system, and fraudsters who posted fake adverts for work at Harrods on a website as part of a £1m scam to trick job hunters into disclosing their bank account details.
The research also highlights the first prosecutions under the UK's Anti Bribery and Corruption legislation, including the case of three senior executives charged in connection with the £23m purchase of 6,000 hectares of land in Cambodia via senior military officials based in the country.
