New data has identified the Midlands as a top fraud hotspot, with the region ranking as the UK’s third most prevalent for fraudulent activity by total value. Fraud totalling £24 million in value was reported in the region during 2024, according to BDO’s latest FraudTrack survey.
This total includes a case against a Worcester-based supervisor, alleging around 4,000 fraudulent furlough claims totalling £7 million. Such false claims and overpayments ranked as the second largest granular fraud type by value nationally, totalling £60 million of reported frauds across the UK in 2024.
Only London and the South East, and the North West, recorded higher levels of reported fraud value than the Midlands in 2024. Nationwide, money laundering was the largest overall type of fraud and economic crime by value, with the average value of individual cases jumping 10-fold versus the previous year. BDO’s research found that money laundering cases totalled £337 million, representing 61% of the total 2024 reported value of fraud and economic crime.
Overall, the value of reported fraud and economic crime in the UK fell 76% compared to 2023 amid a 63% drop in high-value fraud cases. The fall in fraud values broadly follows the five-year downward trend in reported fraud.
While money laundering represented the highest number of frauds by value, ‘non-corporate fraud’ such as phishing scams and identity theft were the most common fraud type by number, representing 41% of fraud cases reported in 2024.
Commenting on the latest report, Ian Bennington, partner and national lead for governance, risk and compliance services, said: “While there are some signs of optimism in our data – notably the decline in overall reported fraud values on a national scale – it’s important that we identify regional hotspots to develop more effective fraud prevention and detection strategies.
“The latest edition of our FraudTrack survey highlights that fraud is not evenly distributed across the UK, with the Midlands coming out as the third most prevalent region for fraudulent activity.
“By better understanding the dynamics and propensity of fraudulent activities in the region, we can help businesses become better prepared in the face of evolving threats. Indeed, regional fraud trends are something businesses should pay particularly close attention to given that, from September this year, the Economic Crime and Corporate Transparency Act (ECCTA) introduces a new corporate criminal offence for failing to prevent fraud.”
The failure to prevent fraud offence to be introduced under ECCTA is designed to incentivise large organisations to step up their fraud prevention strategies by holding organisations criminally responsible for failing to prevent fraud committed by their employees or associates for the organisation’s benefit.
The BDO Fraud Survey 2024 found that 78% of business had begun preparing for the legislation, with 43% reporting an increase in fraud awareness.
Sat Plaha, partner and head of regional forensic services, continued: “It’s encouraging to see organisations taking ECCTA seriously and enhancing their fraud risk management strategies accordingly. However, there are still many businesses that are underprepared and will need to take urgent action to ensure they are compliant.”
