Reported Fraud In The United Kingdom Has Dropped Sharply According To Report

According to accountancy and business advisory company BDO, UK's financial sector reports less fraud by 62 per cent to only £214.9m in 2016 -- a figure the company attributes to the increased public and regulatory scrutiny of financial services following the 2008 financial crisis. However, BDO warns the figures are only "the tip of the iceberg."

According to BDO Partner and Fraud Chief Kaley Crossthwaite, the new requirements on companies in the regulated sector specifically for better systems and controls had helped improve fraud tracing and surveillance. Companies not implementing proper systems as required the regulator immensely fines.

While actual fraud figures have dropped, accusations from reported fraud have increased by 31 per cent -- a five-year high of £21bn possibly pocketed illegally by certain company officials. According to BDO, if police forces are given more resource to handle complex fraud cases and undertake more investigations, the figures may go beyond the small number.

Ms Crossthwaite said companies often try to resolve fraud matters privately to avoid asset loss and minimise publicised damages. Her company also works with majority of these cases.

To further handle fraud in the United Kingdom, new measures may be installed such as the Criminal Finance Bill that will go through its final debate in parliament. The Bill could prevent tax fraud and the seemingly-legal tax-evasion procedures used by companies by finding legal loopholes.