The value of reported fraud cases in Scotland has risen significantly in the past six months, according to a leading firm of accountants.

KPMG's "fraud barometer" shows the value of reported cases increasing from �379,000 to �2.9m.

The firm said that the level of reported fraud cases north of the border seemed to be increasing at a faster rate than in the UK as a whole.

But it said that the overall level of fraud in Scotland remained well below the national average.

Fraud is very much in the public's mind at present and it would appear that companies are not as willing to cover up any wrongdoing

Robin Crawford KPMG

KPMG's "fraud barometer" considers major cases being heard in Britain where the charges are over �100,000.

According to figures for the first six months of this year, there was a sevenfold increase in the value of reported fraud cases in Scotland, from �379,000 last year to �2.9m.

This compared to a 250% increase across the UK - from �111m to �255.4m.

Robin Crawford, partner in KPMG Forensic, said this was a worrying trend, which had been evident for the past five years.

"First, the statistics again seem to demonstrate that the level of reported fraud is increasing at a faster rate in Scotland than in the UK as a whole," he said.

"Secondly, the average value of each reported case has shown a dramatic increase over the last couple of years."

KPMG expects the trend to continue

According to KPMG, the largest increases in the value of fraud across Britain were in the banking and public sectors.

The six-month figure for banking fraud increased from �11.3m on 31 December 2000 to �51.8m by the end of June this year.

Over the same period the firm recorded a 330% increase in the value of reported fraud in the public sector.

Mr Crawford said "huge rises" in the total value of fraud had been reported in every region of the UK.

"As tough economic trading conditions continue, we expect this trend to continue," he said.

"Fraud is very much in the public's mind at present and it would appear that companies are not as willing to cover up any wrongdoing but instead are actively taking advantage of both criminal and civil remedies."

The latest figures also show that the majority of frauds were committed by external third parties.

Mr Crawford said this underlined the need for all firms to "make rigorous checks" on the people they do business with.