More than £1bn of fraud was perpetrated in the UK in 2007, with phishing and other online scams providing new opportunities for criminals

Fraud in the UK hit a 12-year high last year as criminals increasingly turned to technology.

The UK suffered more than £1bn of fraud in 2007, 90 percent of which was perpetrated by organised gangs carrying out ID theft and VAT scams, according to the KPMG Forensic Fraud Barometer.

One of the largest ID thefts was a £1.1m scam where a couple claimed benefits for eight adults and 46 children.

Government was the primary target, suffering £833m fraud. Banks were scammed for £37m, down from £140m in 2006; commercial businesses lost £24m, compared to £81m in 2006; and accounting fraud stood at £20m.

London and the south-east represented the main fraud hotspot, representing 65 percent by value, or £655m, and more than 35 percent of the reported cases.

A spokesman for KPMG said high-tech cons such as phishing and other online scams are providing new opportunities for criminals.

He said: "A lot of this ID theft is being carried out online. Technology is the new battleground on which fraud is being fought and the fraudsters are becoming more and more sophisticated."

Authorities and companies need to keep up with the fraudsters using technology such as analytical software to spot unusual patterns of activity.

In a statement, Hitesh Patel, partner at KPMG Forensic, predicted fraud could continue to rise this year: "Given the developing economic conditions, companies and individuals need to be more alert than ever to the fraud threat."

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