Commercial Finance Specialists

Commercial finance fraud is set to increase as the UK comes out of the recession, it has been claimed.

Commercial lending fraud will rise as the UK emerges from recession, it has been claimed.

Reported fraud in the UK broke the £2 billion barrier for the first time in 2009, according to figures from BDO LLP.

Data from the accountancy and business advisory firm also indicated that there has been a 76 per cent rise in public sector and commercial finance fraud during the recession.

Commenting on the findings, head of fraud at BDO LLP Simon Bevan indicated that the average value of fraud is now over £5 million, compared to £1.8 million in 2003.

He said: "There has always been a lag effect, with reported fraud continuing to rise for at least a couple of years after businesses start to come out of the recession.

"A large part of this will be a tidal wave of fraudulent borrowing that has only just started to appear, particularly through use of over-valued properties as security for loans, while the property market was booming."

The findings follow another survey by the accountants, which indicated that nearly 80 per cent of chief executive officers and financial directors believe that the recession has increased the number of risks businesses face.