Fraud Barometer: Rise in supply chain fraud | KPMG | QA
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Fraud Barometer: Rise in supply chain fraud

Fraud Barometer: Rise in supply chain fraud

KPMG’s Fraud Barometer revealed a substantial rise in supply chain fraud, as criminals pass themselves or their products and services off as genuine.


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Rise in Supply Chain fraud

The march of the middle men

Customers were often unaware they had been tricked by an imposter or that they had bought counterfeit goods. This type of fraud accounted for £99 million in the first two quarters of 2015, an increase of £70 million on the same period last year.

In one case, the defendants are alleged to have set up fake government websites to dupe people into handing over money for administrative services for which the end consumer did not in fact have to pay. The losses are thought to total £30 million.

“Criminals are inserting themselves into the supply chain, and unwitting buyers often genuinely do not realise they are dealing with an intermediary when they do not need to, as a result of misrepresentation. This issue has been aggravated by the sheer volume of transactions conducted online. Criminals are inherently adaptable and have seamlessly moved with the times, adapting the way in which they target victims to take advantage of advances in technology and anonymity afforded by digital commerce,” says Hitesh Patel, Partner Forensics, KPMG in the UK.

<p>© 2018 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.<br> </p>

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