THE cost of big business fraud rose in the North-west last year, it was revealed today.

Figures compiled by KPMG Forensic Accounting show that there were five reported cases of large, serious fraud totalling £1,865,000.

This compared with three cases involving £1,500,000 the previous year.

Nationally, the fraud bill more than doubled over the 12-month period from £121 million to a total of £279 million last year.

KPMG's Fraud Barometer, which has been analysing fraud trends for the past decade, only records cases over £100,000 which have resulted in criminal charges or convictions.

North-west cases included a man convicted at Liverpool Crown Court for plundering two trust funds set up by his former employer, a mortgage fraud involving an estate agency, a man involved in an alleged professional benefits fraud racket, a leading restaurateur who was convicted of a £180,000 VAT fraud and two charity fraudsters who netted an estimated £1 million over five years.

Mr Phil Ramsbottom, KPMG North-west Forensic Accounting Partner, said: "Last year's national fraud bill has almost trebled from the total of £95 million which we reported in 1996 and this significant increase is a major cause of concern.

"In the mid-90s the figures were dominated by investment and pyramid frauds such as property timeshares, trust funds, Nigerian 'banks', smart cards and even foreign coins.

"The frauds we are seeing today are of different types - they appear to be the product of less prosperous times.

"We have seen numerous cases of accounts manipulation and management over-ride in order to cover up losses and maintain income and bonus levels."

He added that the figures do not, however, reflect the increased vigilance by managements in managing fraud risk and in investigating fraud cases internally - both factors in the growth of forensic accounting.

KPMG says it has seen strong growth in demand for its fraud investigation, prevention and expert witness services.

A substantial increase in investigations work led to a rise of more than 50 per cent in fees for KPMG Forensic Accounting in the UK between 1997 and 1998.

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