Huge increase in business fraud as recession bites

REPORTED business fraud in Scotland has rocketed by 450 per cent in the first half of 2009, according to figures from accountancy firm BDO Stoy Hayward.

Fraud reported between January and June totalled more than £10 million, compared with the figure of £1.8m in June 2008.

BDO director of forensic accounting Judith Scott warned that the actual fraud figures could much higher – and claimed that the increase could be due to the onset of the economic downturn.

The 2009 figure is double the amount reported in Scotland during the whole of last year.

Scott said: "It is important to note we are dealing with reported fraud here.

"We warned business at the tail end of last year that there would be a marked increase in fraud due to the onset of the current economic crisis, but the leap in cases is staggering."

She continued: "A trebling of total fraud figures in the UK is predicted during the course of the recession."

The Scottish figures mirror those observed across the UK, where a total of £960m worth of fraud was reported in the first six months of the year.