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The number of fraud cases heard in UK Crown Courts during the first half of 2024 increased by 16% compared to the same period in 2023, with money laundering emerging as the most significant type of fraud by value, according to KPMG’s latest Fraud Barometer report.
The report reveals that nine major money laundering cases have been tried so far this year, totaling over £128 million. The Fraud Barometer, which tracks alleged fraud cases exceeding £100,000, recorded 122 cases in the first half of 2024, up from 105 in the same period last year.
According to the National Fraud Intelligence Bureau, cyber-enabled fraud now accounts for four-fifths of all reported fraud in the UK. Money laundering, in particular, has a strong digital component, with illicit funds often originating from cybercrimes like online scams. These funds are then obscured through methods such as blockchain transactions, securities trading, and the use of shell companies or offshore trusts, before being reinvested into legitimate purchases, frequently conducted online.
In 2023, an estimated $22 billion worth of cryptocurrency was laundered, according to data from Chainalysis.
“Money laundering remains a significant issue in the UK due to the complex and sophisticated financial systems that can be exploited for illegal activities,” noted Ray Waligora, a partner at KPMG. “It will be interesting to observe whether the recent requirement for overseas entities to be registered at Companies House will result in more of these cases being brought to court in the near future.”
KPMG’s report also highlighted that the UK government has been the largest victim of fraud so far in 2024, with 26 cases tried in court, amounting to a combined value of £193 million. This represents a 30% increase compared to the same period in 2023.
A parliamentary report from September 2023 criticized the previous Conservative government for its slow response in addressing fraud and errors within COVID-19 grant schemes. By May 2023, only £20.9 million of an estimated £1.1 billion in losses had been recovered.
In response, the new Labour government has pledged to appoint a COVID-19 Corruption Commissioner to help recover billions of pounds in taxpayer money lost to fraud and mismanaged contracts.
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