The amount of reported fraud hit the £2bn barrier in 2009, and could even soar to £5bn over the next couple of years as managers reveal more theft amid keeping costs down during the recession. Research by accountancy firm BDO revealed that the amount lost by businesses and the public sector to larger frauds increased by 76% last year during the recession, with both the number and size of frauds increasing dramatically. Simon Bevan, head of fraud at BDO said: '2009 saw the steepest increase since our report began seven years ago, with the average value of each fraud now over £5m compared to £1.8m in 2003.' Bevan warned it was a precursor of things to come. 'Based on my experience of the two previous recessions, I expect that reported fraud will treble over the next two years. There has always been a lag effect, with reported fraud continuing to rise for at least a couple of years after businesses start to come out of the recession.' He said a large part of this will be fraudulent borrowing that has only just started to appear and is yet to be recognised by the banks. According to the survey, most fraudsters are aged 20-39, with £1.8bn of the frauds taking place in London and the south east. Around 81% of the frauds are carried out to fund a more lavish lifestyle.