With estimates suggesting that fraud costs the UK economy £30 billion each year* KPMG’s UK Head of Forensic predicts that 2015 will be a year in which the number and assortment of scams will go up. He suggests mobile payments and changes to pension planning will be the root cause.
Hitesh Patel says: “From the fraudsters’ perspective 2015 is likely to be a profitable year. Online transactions are only going to increase as mobile payments become more widespread. An increase in the volume of faceless transactions reduces the checks and balances that organisations have come to rely on, meaning that fraudsters will find it easier to get away with falsifying details and diverting cash to their own accounts, stealing identities and selling goods or services that are sub-standard at best or don’t exist, at worst.
“And, with pension changes putting more cash in the hands of people, their readiness to invest or spend will be akin to attracting moths to a flame. It means confidence tricksters will redouble efforts to convince people that the prospect of a high return on investment is more of a reality than a promise.
“2015 is widely expected to be the year that interest rates go up. Combine this with other increases in the cost of living and the result will be stress on personal circumstances that becomes too much to bear for some people. Unfortunately, rather than look for help, evidence exists to suggest that these individuals will turn to dishonest means to make ends meet. It means that we are also likely to see more in the way of employee and management fraud and a rise in ‘get rich quick’ schemes.”
- ENDS -
For further information please contact:
Mike Petrook, KPMG Press Office
T: +44 (0)20 7311 5271
M: +44 (0)7917 384 576
KPMG Press Office: +44 (0) 207 694 8773
Notes to Editors:
* figures from National Fraud Authority
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.