Banks have been the biggest targets for fraudsters in the first half of 2008 according to KPMG Forensic’s latest Fraud Barometer.

The accountancy firm revealed that fraud had increased by 50 per cent to £630m, with banks suffering a record loss of over £350m. In total 128 cases came to court.
This contrast significantly with the 91 cases and £421m worth of fraud that happened in the same time last year.

KPMG warned that figures are likely to get worse as the full impact of the credit crunch unfolds. Certain types of fraud were also more prevalent including mortgage fraud, and accounting and employee frauds. However the knock-on effect this increase in fraud could have on business customers was not revealed.

Hitesh Patel, partner at KPMG Forensic, said: ““These are worrying indicators. Fraud remains extremely prevalent in the UK with professional gangs accounting for over two-thirds by value, ranging from investment stings to trading scams, card fraud and money laundering. Banks are working extremely hard to protect themselves and their customers from fraudulent activity, but the signs are that organised criminals and syndicates have been relentless in their efforts. Mortgage fraud cases have started to come through in the courts too – and it seems likely that there will be many more to come.

“The cases in this period’s Fraud Barometer largely predate the credit crunch in terms of when the frauds were committed - the fear is that we will not see the real and full fraud impact of the crunch for another six or twelve months or even more, as businesses start to take a closer look at their operations in this difficult economic climate. The signs are that we could end up seeing some substantial losses being suffered,” Patel added.