Fraudsters Take Advantage of Covid Lockdowns as U.K. Cases Jump

(Bloomberg) -- The number of U.K. fraud cases jumped this year as the coronavirus lockdowns created the perfect conditions for criminals to take advantage of a nation locked down.

Fraud prosecutions going through British courts doubled in the first six months of this year, KPMG U.K. Ltd. said in a report published Wednesday. Although the number of cases have risen, the value of alleged fraud dropped by 70% to 139 million pounds ($193 million) -- a fraction of the 895 million pounds realized in the first half of 2018.

The drop in value can be attributed to a lack of high-profile trial as well as more complex cases facing lengthy court delays, Roy Waligora, KPMG’s head of U.K. investigations, said.

The U.K.’s Serious Fraud Office has suffered from a lack of large prosecutions so far this year. Its blockbuster trial against two former Serco Group Plc directors collapsed in April, after it failed to disclose evidence. It centered on allegations the pair had concealed 12 million pounds in profit that ultimately defrauded the British taxpayer.

British courts are grappling with a huge backlog of cases, which was intensified by national lockdowns as a result of the pandemic. While the jump in cases compared to last year shows things are improving, the number of trials being heard is still yet to match the pre-virus years.

Phishing, text scams and other small-scale crime targeting the British public increased by 285% in the first half of this year. Cases of alleged fraud against the government also increased -- including the first case of furlough fraud.

“Professional criminals have seized on the opportunities created by the global pandemic to target victims in their own homes,” Waligora said. “Having a captive audience at home during lockdown has provided the perfect opportunity for unscrupulous criminals to take advantage.”

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