However, the volume of fraud in the sector continued to remain high compared to counterparts in other industries, with the number of cases dropping just 11% to 118 from 132 in 2013.
Mortgage fraud and money laundering accounted for 47% of all fraud cases in the finance and insurance sector, but made up almost three-quarters (74%) of total value of fraud in the sector.
In total, mortgage fraud accounted for 8% of all fraudulent activity with £57m lost.
There was increased enforcement reported in the low value fraud sector, with cases averaging a value of £1.3m and rising in 2014 from 525 to 546.
BDO partner and head of fraud Kaley Crossthwaite said a growing trend for high value complex fraud to be dealt with outside of the judicial system and the public eye had contributed to low value fraud figures.
“In line with the paradoxical trend in fraud, the value of fraud in the financial services sector has plummeted despite volumes remaining high with money laundering in particular also following this trend.
“As enforcement professionals have become more proficient at securing convictions for high volume low value fraud this has become the focus of their attention. We must be careful that the pursuit of the low hanging fruit does not distract attention away from larger more complex fraud,” she added.
