Mortgages account for 18% of all fraud

In its Fraudtrack survey, BDO says the amount lost by businesses and the public sector to larger frauds increased by 76% during the recession last year to more than £2bn, with both the number and size of frauds increasing dramatically. The firm said the frauds typically work through a large loan being taken out on an overvalued property, with a buyer in collusion with a valuer and a lawyer. BDO has predicted the 76% rise is a precursor of things to come. It warned annual reported corporate fraud could be as high as £5bn in a couple of years as more fraud is discovered both through ma...