Business fraud is becoming more attractive because of growing rewards and falling chances of prosecution, according to BDO Stoy Hayward.
Its Fraudtrack report found that fraud involving businesses hit £538m in the first half of 2007, up 42% from 2006.
It said VAT fraud was so lucrative that criminals only needed to hide away a few percent when they got caught.
“Many fraudsters are laughing all the way to their offshore tax haven,” said BDO’s Simon Bevan.
The report said that even those fraudsters who end up going to prison would only serve between two and five years, even for those involved with multimillion pound frauds.
Business fraud in UK rises 42%