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Fraud Updates
PCB News
Fraud Updates 2005
22 September
It was reported yesterday that fraud costs UK businesses up to an estimated £14 billion per year of which, between 75% and 80% is carried out in collusion with senior management or directors. At the same time, other estimates have shown that more than 50% of medium sized businesses in the UK have been hit by some kind of fraud in the last year. Despite this, 46% of small and medium sized businesses have no controls in place to combat fraud.
To combat fraud, it is essential for effective risk management procedures to be in place. Should your business fall victim to such a fraud, there are a number of steps that can be taken that enable the fraudster's assets to be identified and frozen without notice to him so that losses can be effectively recovered.
15 September
It was reported yesterday that a class action complaint against spyware company 180Solutions was filed in an Illinois, United States District Court.
The complaint, a class action on behalf of residents of the United States and the State of Illinois, charges that 180Solutions downloaded spyware onto computers without the knowledge or consent of computer owners. The spyware allegedly kept track of web- browser search terms and personal interest trends of users and sold this information to third party servers, potentially disclosing personal information of the computer owner to the outside world.
Theft of personal information has become one of the most alarming upward trends today, with more than £412.3 million being lost to online information thieves in 2004 and effective deterrents are required to combat it.
Where confidential information has been stolen, there are a number of steps a victim (whether a business or an individual) may take. They include obtaining disclosure orders to find out how this information has been disclosed, injunctions to stop its further disclosure and either damages or an account of profits made by the party taking the information.
6 September
In a speech given yesterday by Lord Goldsmith, the Attorney-General, he referred to the link between terrorist activities and their funding by organised crime using fraud to raise the necessary finance. He gave notice that the Government would increase its efforts to cut off this source of terrorist funding.
One step it may take is to increase the funding available to the Asset Recovery Agency (the "ARA") which is tasked with recovering assets from Britain's richest criminals.
The Government may also wish to consider the use of the powers available in the private sector to combat fraud. These powers enable victims of fraud to use the civil courts to recover stolen assets. It is possible to use court orders to trace stolen assets through different bank accounts in differing countries and even into assets purchased using the money. Alternatively, if the fraudsters are identified, it is possible to quickly freeze their worldwide assets and require them to disclose details of their assets.
| October 2005 | August 2005 |