The number of alleged fraud cases over the £100,000 threshold being heard in Scottish courts rose “significantly” last year, according to accountancy giant KPMG UK’s latest bi-annual fraud barometer, a “dramatic” jump seen as giving cause for concern and prompting a call for businesses to keep their eye on the ball in terms of enforcing preventative measures.

The increase also takes place in a post-pandemic world that has become more digital, with workforces that often remain physically dispersed, fraudulent applications for Covid-related state business support schemes, as well as scammers exploiting consumer panic over the cost-of-living crisis.

KPMG found that 24 cases totalling more than £17 million reached Scottish courts in 2022, “skyrocketing” from 16 cases worth £5.9m coming to light in 2021 – marking a value increase of nearly 200 per cent. Commercial businesses were the victim of five cases of fraud with a combined value of £1.3m, and four of these involved embezzlement of a combined £604,000.

£7 million was allegedly scammed from a top US Bitcoin broker . Picture: Getty Images/iStockphoto.

Just over half of all the cases had a value of £100,000 to £250,000. Cases highlighted by KPMG include a woman who was charged with fraud offences amounting to £238,500.

Also on the list was a 38-year-old woman who pleaded guilty to a fraudulent cheque scam with a large bank after she deposited five cheques totalling £1.5m without having sufficient funds in her account; and a 37-year old businessman who was imprisoned for 33 months for carrying out a £736,000 gift card scam after exploiting a “secret loophole”.

Additionally, a 24-year-old was accused of defrauding £7m from a US Bitcoin broker.

Annette Barker, head of KPMG forensic in the UK, said: “The dramatic increase of fraud cases coming to light in Scotland is worrying, particularly with many cases involving rogue employees abusing their positions of trust to steal money from their employers, clients and other partners.”

'The dramatic increase of fraud cases coming to light in Scotland is worrying, particularly with many cases involving rogue employees abusing their positions of trust,' says Annette Barker of KPMG. Picture: Dorchester Ledbetter.

Sandra Aitkenhead, senior manager, forensic, at the professional services firm in Scotland, said: “Businesses must do all they can to maintain adequate controls to prevent serious fraud from being committed.

"Without the right safeguards in place, businesses across Scotland will unfortunately continue to be victims of crime and incur the reputational and financial damage which comes with it.”

Looking at the picture at a UK-wide level, the total value of alleged fraud cases of £100,000 or above heard in the courts increased by 151 per cent year on year to £1.12 billion in 2022 – largely driven by five cases with a value of £50m or above.

Professional criminals were the main perpetrators, responsible for 92 cases of fraud worth a total of £725.2m, up 130 per cent year on year, and management was the second-largest group by volume, accounting for just over a quarter of cases in 2022.

The total value of alleged fraud cases of £100,000 or above heard in UK courts increased by 151 per cent to £1.12bn in 2022. Picture: Dan Kitwood/Getty Images.

Fraud cases against financial institutions halved in 2022 to 32 – but the value of fraud committed against such organisations jumped 2,204 per cent to £609.2m.

Roy Waligora, partner and head of UK investigations at KPMG, said: “In 2022, we saw the total value of fraud in the UK return to pre-pandemic levels as a few high value cases boosted the numbers.

"This comes as professional criminals have continued to attempt to line their pockets with high-value fraud against financial institutions and their customers.

“The slight drop in volume of fraud cases heard does not mean that fraud in the UK was any less prevalent in 2022.

"The impact of fraud remains a real concern in the UK, however, the decrease in the volume of cases may be an indication of pressure on authorities and that some fraud cases are not resulting in charges, as recently outlined by the National Audit Office.”

Embezzlement has remained the most common fraud type for 2022, with 36 such cases with a value of at least six figures heard in UK courts in 2022, including one that saw an employee steal £6.7m from company accounts.

Mr Waligora also said: “It is very important for businesses to have channels to report fraud and when businesses become suspicious about any fraudulent activity, that they act swiftly to uncover the facts so they can take decisive action against the individual or individuals.

"This is especially relevant as companies start to address the requirements of a Fraud Statement in their annual reports.”

Additionally, the total value of money-laundering cases increased by 694 per cent to £541.7m from 2021, bolstered by three cases with a value of £100m or above. Last month, three former lawyers and two other men who were involved in a £1.5m money-laundering operation were jailed following a trial at the High Court in Glasgow.

Mr Waligora said: “While these cases may seem alarming, it is positive that [they] are making it to UK courts as these alleged crimes are exposed. However, businesses and institutions themselves need to be doing more to stop money laundering activities which are achieving such high values.

“As for investment fraud, investors and potential investors need to be wary of any investment opportunities.

"They should ensure they are doing their due diligence first by seeking advice and checking the FCA register.”

Analysis: 'skyrocketing' fraud in Scotland prompts call for firms to reinforce anti-fraud measures