Law and the Justice System

A new national charity has been established to help those who have been affected by cyber or fraud crime.

The hub has been formed by the Cyber and Fraud Centre – Scotland (CFCS) in response to a swift rise in calls from concerned members of the public to its helpline.

Last year, calls to the helpline doubled, with six in 10 coming from members of the public seeking advice following a suspected cyber or fraud crime.

https://www.holyrood.com/news/view,scottish-charity-launched-to-support-victims-of-cyber-crime-and-fraud-22129

The new criminal offence of failure to prevent fraud will likely result in a transformational corporate culture shift with respect to how fraud is viewed amid an ongoing fraud epidemic in the UK.

Currently, approximately 40% of reported crime in England and Wales is due to fraud, according to a recent House of Commons Justice Committee report (50 pages / 586 KB).

The general election appears to have delayed the likely implementation of the new failure to prevent fraud offences which were included in the Economic Crime and Corporate Transparency Act 2023 (s 199 onwards). Regulations to bring the relevant sections into force can only be made after the secretary of state has published guidance on the procedures that relevant bodies can put in place to prevent persons associated with them from committing the fraud offences set out in the legislation (the guidance is required by s 204 of the Act).

https://www.taxjournal.com/articles/-failure-to-prevent-offences-delayed

The Independent Review into disclosure and fraud offences promised as part of the government’s May 2023 Fraud Strategy has now published its preliminary findings in the disclosure aspect of the investigation.

The independent review is due to examine the disclosure regime in the context of the ‘digital age’ and challenges in the investigation and prosecution of modern fraud.

Imagine a world in which the police, lawyers and cryptocurrency exchanges worked harmoniously together, in aid of the victims of crypto scams…well…

In a groundbreaking case, the collaborative efforts of police, lawyers, and cryptocurrency exchanges led to the successful recovery of stolen life savings for an elderly, vulnerable victim. This success story showcases the power of innovative thinking and cooperation in the fight against cryptocurrency fraud.

A FRAUDSTER described by a judge as the most “fundamentally dishonest” man he had ever seen has been ordered to repay just £16,700 after conning his victims out of more than £620,000.

In January, Darryl Evans was jailed for a total of eight years, having been convicted of 26 charges of fraud and one charge of theft.

The emotional impact of online fraud for victims is worse than the financial hit, even when the loss was tens of thousands of pounds, according to new findings from a study speaking to victims of online fraud.

The new report from Crest Insights, funded by the Dawes Trust and in partnership with Birkbeck University and the Police Foundation, was based on a series of one-to-one interviews with victims of different types of fraud such as bank, identity, and romance fraud and, as well as focus groups with members of the public.

https://policeprofessional.com/news/emotional-toll-on-fraud-victims-worse-than-financial-impact-research-shows/

A couple from Oxfordshire, who lost their life savings in an investment scam, say they were confident they had made all the necessary checks.

Marilyn Hamblin and her husband Gareth have been trying to get to the bottom of what happened to their money.

Six years ago they were looking for somewhere to put their savings to try to increase their pension pot.

The cost of fraud in the UK more than doubled to £2.3bn in 2023, according to BDO’s ‘FraudTrack’ report, with the number of reported cases rising by 18 percent to a three-year high.

Employees can commit fraud in a wide variety of ways, including dishonest sales practices, hiding important information from consumers or investors, and dishonest practices in financial markets. Individuals, other organisations or the taxpayer may end up defrauded and out of pocket as a result.

The question for organisations is how to defend against this ongoing tsunami of fraudulent activity.

Claire Hills, a Director at bennettbrooks, outlines the requirements of the new economic crime legislation.

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) was granted Royal Assent on 26 October 2023. There has been widespread press coverage on some of the other ECCTA provisions such as new Companies House enforcement powers (along with increased filing fees to pay for them), verification of directors’ identity and increased accounts disclosure. However, it also contains a new groundbreaking measure: ‘the Failure to Prevent Economic Crime” criminal offence which will render large companies liable for fraud committed by their employees where the fraud was committed with the intention of benefitting the organisation or those to whom it provides services. We consider the offence and implications for businesses.