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Fraud Updates
PCB News
Fraud Updates 2006
30 January
Figures released today by accounting firm KPMG show that the levels of fraud related crime have increased dramatically in the last year. In 2004, 172 cases, totaling £329m, came before the crown courts. This figure is eclipsed by the 222 cases, totaling £942m, which occurred in 2005.
The accounting firm believes that the sharp jump is a result of a number of former victims finally coming clean on their actual losses in 2005.
These figures finally indicate a willingness of victims, whether corporate or individual, to start revealing their actual monetary losses in an effort to recover those losses through the civil law system. Where in the past victims feared revealing fraudulent attacks against them due to fear of embarrassment and bad publicity, more and more are realising that by employing the legal system to their advantage they may recover their money from the fraudsters.
Victims have a number of remedies which are available in circumstances where they have been defrauded. Identifying the fraudster's assets, freezing them to make sure they are not squandered and seizing them in favour of their true owner are just a few.
19 January
It was reported today that a leading Japanese internet service provider has been accused of a massive share price manipulation scheme. The company allegedly altered the value of its share price by intentionally planting rumors about itself on online chat rooms in an elaborate ploy to boost shareholder confidence. The allegations have lead to a massive dumping of stocks across the Japanese stock exchange as investors fear that other over- performing companies in the industry may have manipulated their stock value in a similar way.
Although this took place in Japan, there have in the past been examples in other financial markets, of traders, share tipsters and companies themselves attempting to maintain or increase share prices with no real basis for doing so.
Where shareholders suspect that the value of their shares have been manipulated in some way by the operation of some fraud they should seek advice immediately before their shares are rendered worthless. Victims may have a variety of remedies which enable them to identify, freeze and seize the assets of those responsible.
19 January
It was reported today that thousands of National Rail employees' identities have been stolen in the latest online attack by fraudsters. Around one in seven employees of the firm had their identities compromised in the attack. The stolen identities are now being used to defraud the Revenue service's tax credit scheme to the tune of between £15million and £100million.
Fraudsters have also used the stolen information to open bank accounts to process their money, thereby placing the credit ratings of thousands of victims in danger. The Revenue has until now been unable to curb the large volume of fraud being perpetrated through its department and associated websites.
The continuing increase in identity theft is alarming and highlights the risks posed by both online business and online government.
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
| March 2006 | December 2005 |