Counter-fraud

Fraud volumes and values are rising annually. But new rules and governance regulations hope to help prevent business fraud before it happens and detect it when it does.

A series of high-profile corporate collapses, the growing importance of data and non-financial risks and the exponential rise of fraud has focused minds on the widespread harm that fraudulent activity inflicts not just on the wider economy, but on companies and individuals too.

Cybersecurity expert from Shepherds Friendly reveals how to prevent an online finance scam and what to do if you’ve fallen victim to fraud.

An estimated £7.5 billion was stolen in 2023 through scams or identity theft, with 1 in 10 Brits falling victim to scams. The digital world we live in is a hotbed for online finance fraud, and as scammers increasingly use more sophisticated methods and technologies, how do we avoid falling victim to these crimes?

Five people, including convicted fraudster Neale Rothera, were sentenced for their involvement in a fraud and money laundering scheme which cost banks over £500,000 earlier this week. But with the money unrecoverable, how can this type of situation be avoided in the future?

Rothera set up four separate businesses which claimed to sell furniture and carpets across Leicestershire in 2012. However, they were later proved to be shams and used as vehicles to commit fraud and money laundering.

The risk of fraud in UK aid has been heightened by budget cuts, the pandemic and a departmental reorganisation, a watchdog has warned.

The Independent Commission for Aid Impact (ICAI) criticised the Foreign, Commonwealth and Development Office (FCDO) for largely reacting to fraud rather than proactively seeking to prevent it.

https://www.impartialreporter.com/news/national/24210510.risk-uk-aid-fraud-rose-budget-cut-covid-fcdo-merger-watchdog-says/

The first measures under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) came into force on earlier this month.

Changes introduced include:

greater powers to query information and request supporting evidence

stronger checks on company names

new rules for registered office addresses (all companies must have an appropriate address at all times – they will not be able to use a PO Box as their registered office address)

a requirement for all companies to supply a registered email address

a requirement for subscribers to confirm they’re forming a company for a lawful purpose when they incorporate, and for a company to confirm its intended future activities will be lawful on its confirmation statement

greater powers to tackle and remove factually inaccurate information

the ability to share data with other government departments and law enforcement agencies

In a proactive move against organised crime and sanctions evasion, the UK government has enhanced its fraud detection capabilities with the integration of UK and US sanctions data into its Single Network Analytics Platform (SNAP)

This upgrade aims to empower authorities in identifying suspicious networks, activities, and users, thus strengthening efforts to combat fraud within the public sector.

The UK government has announced measures granting banks 72 hours to scrutinise suspicious transactions before processing payments to combat rising fraud

This comes after efforts to tackle the escalating threat of Authorised Push Payment (APP) scams which has left victims dealing with a total of £485 million in losses in 2022.

The Home Secretary has hailed a pledge by world leaders to unite to fight fraud as a “massive step forward” in efforts to crack down on the crime.

The agreement was signed as representatives from governments of the Five Eyes intelligence partnership – the UK, US, Canada, Australia and New Zealand – as well as those from France, Germany, Italy, Japan, Singapore and South Korea attended a summit in London.

Fraud is the most common type of crime we face. 38% of all crime committed in England and Wales last year was fraud – it costs money, weakens our economic security, and ruins lives.

On Sunday, I welcomed ministers from the G7 and Five Eyes countries, global law enforcement agencies, tech companies, and industry partners to Guildhall as part of the government’s Global Fraud Summit.

Fraud is perpetrated with such speed that a joint global effort is required to tackle the crime, HRH Princess Anne told the opening of the Global Fraud Summit.

The inaugural event held at the Guildhall in London sees senior ministers and representatives from 11 countries discuss how law enforcement agencies can come together to enhance the global fight against fraudsters.