SCOTLAND has experienced a 39 per cent cut in the level of high value fraud in a year while the UK has seen an increase of 22 per cent, a new study shows.

The data revealed in KPMG’s latest Fraud Barometer shows that while there was a drop in the level of Scots fraud cases with losses of £100,000 or more reaching courts in the first six months in 2015 compared to the previous year, there was a significant rise in the level of fraud committed by employees on their customers and employers – increasing from £940,000 in 2014 to more than £3.3m in 2015.

This contrasts with the sharp decline in cases brought to court where a customer has defrauded a business – down from four in the first six months of 2014, to zero in 2015.

In total, in the first six months of 2015, Scottish courts dealt with nine cases of high value fraud, one more than compared to the corresponding period in 2014. The total value of fraud was £3.8m compared to £6.2m in 2014.

The report also shows that fraud committed under the value of £1m increased by 33%.

The UK increase has been blamed on family fraud as Britain’s elderly are preyed on by younger relatives.

Ken Milliken, Head of Forensic for KPMG in Scotland said: “While the value of fraud across the UK is on the up, the picture in Scotland tells a more positive story.

“Measures in place to protect businesses from external fraud from customers appear to be working with no cases of that type being heard in Scottish courts during the last six months. Furthermore, the value of fraud cases in Scotland saw a marked reduction during that period with just one case being heard over the £1m mark.

"However, there must be corresponding checks and balances in place to prevent employees from within businesses exploiting their own customers and employers. This is reflected by the cases coming to court in Scotland in 2015, whereby significant levels of fraud have been committed by staff in trusted positions either swindling their customers or embezzling money from the firms for which they work.”