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Police to crack down on rising fraud

Published on 26 May 2009 under category: legal

A senior police officer said he expects a rise in fraud cases this year as the recession continues, but says the authorities will not treat it softly.

Mike Bowron, commissioner at the City of London Police, said economic crime has risen by 64 per cent in the past year with a £1 billion increase occurring in fraud.

He said he is aiming to stamp out the notion that fraud is a gentleman's crime and that it is unlikely people will be caught.

Mr Bowron added: "Those days are gone. It's not white collar crime and I won't have that phrase mentioned in my force. It is organised crime."

A new team of fraud investigators has been created, with 50 specialists being employed to look at new frauds valued at £1 billion.

He said one issue with the crime is that fraud is not a priority for the public, as they do not live in fear of it, despite it being an offence people are most likely to fall victim to.

MPs were warned last week by shadow foreign secretary William Hague that they may have committed fraud in their expenses claims.

The MP told BBC One's Question Time that criminal prosecutions should be brought against some of the politicians.

Dan Hyde, a consultant at Cubism Law, agrees there is a likely rise in fraud cases. "It is not only due to the recession but also the cutback on bonuses and pay in the banking sector; this will lead some to try and plug the gap through other, fraudulent means.

"White collar crime is not necessarily organised crime white collar merely denotes that it is in the professional or business arena. Of course fraud is not a gentleman's crime and should be treated as any other crime.

"In relation to MP's expenses – one size does not fit all. There may be frauds in some (but not all) circumstances. It is complex. First the police should examine if a fraud has apparently been committed. Secondly is there sufficient evidence (the evidential test). Thirdly is it in the public interest to prosecute (the full code test)."