The study said fraud in Scotland was at a record high

The report by KPMG shows that the number of reported cases in the first six months of 2003 has already exceeded the level for the whole of 2002.

KMPG cites economic uncertainty and the pressure on people to pay bills as major reasons for fraud.

Its fraud barometer considers cases where the charges are for more than �100,000.

Last year there were 10 major cases in Scotland, but the figure for the first six months of this year is 11.

Significant impact

The overall value of fraud is also on the rise - by more than �100,000 in the January to June period from last year.

The average value of cases fell dramatically from �1.45m to �300,000.

But KMPG says the impact on companies' reputations and share prices is still significant.

The company also blamed the huge growth in e-commerce for increasing the overall fraud risk.

It said the message for Scottish firms was simple: "Act now to avoid being the next victim."