Frauds

Trowers & Hamlins secures a major High Court victory in a £45 million property fraud lawsuit.

International law firm Trowers & Hamlins has achieved a landmark victory in the High Court, successfully representing the claimants in the high-profile case 4VVV Ltd and Others v Spence & Others. The case involved a complex property fraud scheme, which saw 435 investors incur significant financial losses from investments in unregulated property ventures, including student accommodation and holiday homes across the UK. The High Court ruling in favor of the claimants marks a significant milestone, potentially paving the way for £45 million in damages.

The Department for Work and Pensions (DWP) is set to gain new powers to directly access bank accounts and wages of suspected benefit fraudsters, as part of a major Government crackdown on welfare fraud.

Liz Kendall, Work and Pensions Secretary has unveiled plans to update the department's "outdated" investigatory tactics, which have remained unchanged for two decades.

62.1% of UK consumers see mobile app fraud as a top concern, with 50% also citing hacking as a fear, according to findings from the Open Worldwide Application Security Project (OWASP) and Appdome.

“Banks and fintechs are worried about fraud happening to them because of the implications from a regulatory perspective and obviously, a financial loss perspective, and so are consumers,” said Chris Roeckl, chief product officer at Appdome, speaking to finextra.

https://www.finextra.com/newsarticle/44884/over-62-of-uk-cite-mobile-app-fraud-as-top-concern

A MAN has been arrested in Bradford on suspicion of insurance fraud.

Officers from City of London Police said the 41-year-old man was arrested in the early hours of October 1.

He is alleged to have made around £140,000 worth of fake car insurance claims, according to the force.

Given the speed with which stolen assets can be transferred through the global banking system, and the increase in cyber fraud and invoice hacking incidents, time is of the essence if you are to successfully recover money stolen by a rogue employee through fraud.

https://www.pinsentmasons.com/en-gb/out-law/guides/using-the-civil-courts-to-recover-assets-after-employee-fraud

A fraudster told locals he worked for a water company so that he could gain access to their homes. Police say Mohammed Anwar specifically targeted people he perceived to be vulnerable so that he could steal from them.

On June 21 and July 3 this, the 42-year-old used the water company ploy to get into the homes of two people in Leamington and steal their bank cards. He later went on to use them to get money. But his spree came to an end when he tried the same trick on July 5.

Drivers face an unlimited fine and imprisonment for breaking a major driving law. Road users and motorists can be slapped with an unlimited fine and risk prison time for carrying out fraudulent car insurance practices, it has been warned.

The warning comes after cases have taken a significant rise in the UK, with more than 45,000 scams recorded this year alone. In 2023, insurers detected £1.1billion worth of fraudulent claims, marking a four per cent increase from the previous year.

Value and volume of detected fraudulent claims both up.

The fight against insurance fraud remains a central focus for the industry, as new figures from the Association of British Insurers (ABI) show that fraudulent claims totalling £1.1 billion were detected in 2023 – a 4% increase compared to the previous year.

https://www.insurancebusinessmag.com/uk/news/claims/abi-outlines-extent-of-insurance-fraud-507601.aspx

The UK anti-fraud agency has raided three residences and made four arrests in North West England in relation to an investigation into Signature Group.

The Serious Fraud Office (SFO) has announced it is investigating Signature Group, a business that attracted over a thousand investors in the redevelopment of landmarks including Belfast’s Scottish Mutual Building and the Coal Exchange in Cardiff.

Artificial intelligence (AI) is being used to drive insurance fraud as the number of dodgy claims is on the rise, according to a survey of claims handlers.

One in five (19%) of the claims handlers surveyed across four sectors including medical insurance believed up to a quarter of all claims submitted might be created or altered using AI.