Financial

There has been increasing coverage in the press over recent months reporting that the pandemic has led to an increase in fraud and, in particular, investment fraud. However, little has been said on the various types of schemes in operation. Investors and financial advisers need to keep ahead of the game, and it’s crucial to understand the warning signs and the best ways to respond when the worst happens and one of your clients is a victim of fraud.

https://www.stevens-bolton.com/site/insights/articles/investment-fraud-uncovered-what-advisers-need-to-know

The increasing frauds, crimes in cryptocurrencies since 2018 has given a setback to the authorities and has asked the traders to keep a check on the individual companies one is dealing with. As per the police report, there were almost 393 fraud cases reported last year which is increasing day by day.

https://www.thecoinrepublic.com/2021/05/28/fraudulent-and-crime-cases-rise-in-cryptocurrency/

The Financial Conduct Authority (FCA) has recently announced that they are extending the deadline for Strong Customer Authentication (SCA) for e-commerce transactions to 14th March 2022.

https://thefintechtimes.com/the-fca-extended-the-sca-deadline-to-2022-heres-what-fintechs-think/

Cifas and UK Finance are warning of the increasing number of middle-aged money mules and businesses being recruited to launder money.

https://www.yourmoney.com/saving-banking/growth-in-number-of-middle-aged-money-mules/

One of the two fraudsters at a company that got £70 million from London Capital & Finance before it collapsed was today jailed for 13 years for conning vulnerable victims out of £36 million in a boiler room fraud.

https://www.msn.com/en-gb/news/uknews/fraudster-at-firm-linked-to-london-capital-and-finance-jailed-for-13-years/ar-AAKux62?ocid=st

Less than half of the losses of fraud victims who transfer cash to scammers’ bank accounts have been repaid under a voluntary code that banks are applying inconsistently, according to a consumer group.

https://www.centralfifetimes.com/news/national-news/19334478.victims-bank-transfer-scams-get-46-money-back-says/?ref=twtrec

The Financial Conduct Authority (“FCA”) has launched its first criminal prosecution for offences under the Money Laundering Regulations. It is also the first criminal prosecution against a bank for such offences. Previous FCA action has focussed on imposing fines for breaches and regulatory action over criminal prosecution. However, they have been heavily criticised previously for failing to prosecute breaches. Does this case signal a new regulatory approach?

https://www.twobirds.com/en/news/articles/2021/global/natwest-to-face-the-first-criminal-prosecution-by-the-fca

Investors are being urged to be vigilant after an investment bond scam has emerged, whereby the fraudsters are pretending to be from Aviva Investors in order to dupe savers.

https://www.ftadviser.com/investments/2021/05/26/scammers-use-aviva-name-to-target-bond-investors/

More than £63m has been lost nationally by victims of investment fraud via a social media platform, says Action Fraud

https://www.computerweekly.com/news/252501404/Millions-of-pounds-lost-to-crypto-fraud-on-social-media

Five men from Merseyside have been charged in a National Crime Agency investigation emerging from the take down of encrypted comms platform EncroChat.

https://www.nationalcrimeagency.gov.uk/news/operation-venetic-five-charged-in-merseyside-money-laundering-investigation-linked-to-car-showroom