Internet rises level of frauds

Date: August 03, 2007
Source: Vnunet.com


raud levels in the UK are at record high, with the internet involved in almost all instances of fraud, according to the latest KPMG Fraud Barometer report.

In the first half of 2007, the government and businesses lost £594m to fraud, almost three times the figure recorded for the previous six months.

So-called carousel fraud has been the biggest contributor over the last six months, with four cases alone totalling £440m.

Carousel fraud occurs where fraudsters obtain VAT registration to acquire goods such as computer chips and mobile phones VAT-free from other EU member states. They then sell the goods at VAT-inclusive prices and disappear without reimbursing the VAT costs paid to them.

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