Repeat offenders have been able to circumvent internal controls to continue to commit fraud.
The Fraud Barometer data recorded another trend where a number of repeat offenders are heading back to Court. It recorded four cases of people with previous convictions for fraud coming back to court under new charges totalling £2.6 million. In some cases, the alleged repeat offenders were able to secure employment in new roles where they subsequently were able to circumvent internal controls to continue to commit fraud.
In one case a fraudster was caught trying to pay a £100,000 tax fraud debt with money he had stolen by staging another scam. The 57 year old fraudster first appeared in court in 2016 where he told the judge at Leicester Crown that he could repay the sum of £107,000 if given more time to come up with the money. Investigators from HM Revenue and Customs later discovered he was raising the money to pay the debt through a second scam that involved stealing more than £580,000 from other businesses. He admitted the second fraud at court in 2019 where he was jailed for four years.
“Whilst for most fraudsters, being caught and convicted once is enough to ensure they don’t continue to commit crime, for some the lure of the prize on offer is too much to resist - regardless of the consequences. Businesses need to ensure they are doing thorough due diligence on the people they are hiring into their organisations – particularly if they are filling roles with financial responsibilities.”
Roy Waligora, KPMG UK Head of Investigations.