OFFICIALS were last night attempting to unravel the extent of a systematic VAT fraud that threw the accuracy of UK trade figures for June into doubt.

The Office for National Statistics (ONS) said it was investigating whether criminal activity could have triggered a sharp rise in exports of goods such as mobile phones and computer chips outside the European Union during the month.

Such products are favoured by fraudsters because they are easy to transport across borders and hide from customs officials.

With imports from European Union countries also rising, the ONS said that the pattern of trading was suspicious and fraudsters may be pocketing the VAT on goods bought in the EU but sold overseas.

The scam, known as Missing Trader Intra Community Fraud, has generally occurred within EU trade and the ONS has been forced to adjust its figures in response.

The provision for such fraud in the national accounts peaked at £11bn a couple of years ago and led to many successful prosecutions, the spokesman for the ONS said.

But the ONS and customs officials are looking at whether tax fraud with countries outside the EU may need to be accounted for in the UK trade figures.

A spokesman for HM Revenue and Customs said it was examining whether a sudden shift in the pattern of missing trader fraud had affected trade data.