It is people who commit fraud and not companies

Robin Crawford KPMG

The number of individual cases fell well below the previous year's levels, from nine to five.

But the combined value of the frauds was �4.71 million, compared to �3.87m in 2000.

Robin Crawford, partner in KPMG Forensic, said economic uncertainty may go part of the way to explaining the rise in commercial fraud.

He said the rise was "typical of the problems faced by businesses in a recessionary environment when, as profits start to decrease, long-term frauds are more likely to come to light".

The picture in Scotland has shown an increasing trend since 1998.

Large corporations are particularly susceptible, according to the accountants.

Existing customers

KPMG warn that one of the most established - but, perhaps, unrecognised - practices is the so-called "long firm" fraud.

That is when a company orders goods, but has no intention of paying.

The advise is to be careful with new customers, make thorough checks and be wary if existing clients change their personnel.

"It is imperative for businesses to understand that it is people who commit fraud and not companies," Mr Crawford said.

Cumulative total

The fraud barometer monitors the extent of major frauds - those in which charges specify sums over �100,000.

According to the KPMG statistics, Scotland has had a total of 57 major frauds since 1990, involving a cumulative total of �46.12m.

The lowest annual figure was in 1990 when there was just one case, involving �200,000.

The highest annual value was in 1993, when there were five cases involving �6.4m.