April 5, 2022
Fraud Newsletter 65 March 2022
CASES
Banks duty of care extends to APP fraud: £700k “Authorised Push Payment” fraud: duty of care to make inquiries and refrain from paying promptly owed to customer deceived by fraudster: Phillip v Barclays Bank [2022] EWCA Civ 318.
“Knowingly concerned” in contravention of s21(1) FSMA (restrictions on Financial promotion) requires knowledge of the factual circumstance that prevents a potentially relevant disapplication from operating: FCA v Ferreira [2022] EWCA Civ 397.
SENTENCING AND CONFISCATION
Nothing of moment.
BILLS, STATUTES & STATUTORY INSTRUMENTS
Government adds paid-for ads by scammers to Online Safety Bill: duty of care on search engines & platforms to protect users of services from fraud (e.g. catfishing romance scams and fake stock tips) committed by other users: Ofcom to fine up to £18m or 10% annual turnover: Campaign: 9 Mar 22; DMCS 25 Feb 22
Economic Crime (Enforcement and Transparency) Act 2022: register of overseas entities/beneficial owners: criminal penalties for non-compliance: UWOs amended: 14 Mar 22.
CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS
ML and TF Risks Arising from Migrant Smuggling: FATF: Mar 22.
ML and TF controls in High Risk Third Countries: HM Treasury Advisory Notice updated 17 Mar 22.
List of UK Bilateral treaties on mutual legal assistance in criminal matters: FCO: 7 Mar 22.
LPP: disclosing suspicions to your MLRO: Law Soc Guide 7 Mar 22.
Corporate Transparency and Register Reform White Paper: DBEIS: 28 Feb 22.
NEWS
FCA:
Former Redcentric CFO sentenced to 5½ years after trial for false and misleading statements/ false accounting: 3 Mar 22
Discontinuance of first prosecution for failing to comply with RIPA statutory notice: 28 Feb 22
SFO:
Fallout Grows After Missteps in Unaoil Probe: 2nd conviction quashed: Wal St Journal: 24 Mar 22.
Lisa Osofsky evidence to Justice Committee: 29 Mar 22
The whistleblowing bankers who were sent to jail: BBC 1 Mar 22 re lowballing, LIBOR and EURIBOR and the Lowball tapes.
HMRC:
Caution urged as fraudsters seek to hijack personal tax accounts: 8 Mar 22.
3 sentenced for roles in £6.1m money laundering scheme: 8 Mar 22.
HOME:
Number of UK ransomware attacks double in past year: RPC analysis of ICO data: 28 Mar 22.
Public Sector Fraud Authority established amid efforts to tackle government inefficiency: £48.8m funding over 3 years: Investment Week: 23 Mar 22
Which? Money Fraud analysis of Action Fraud data: Nov 20 – Dec 21. 448,838 fraud reports – losses total £1.9Bn.
Type Reports (000) / Av. loss)
Online shopping 103k / £650
Advance fee 36k / £1,296
Shopping 24.8k / £2,692
Computer fixing 19k / £1,448
Other investment 15.6k / £24,089
Dating 10.2k / £10,349
Boiler room 7.5k / £24,887
Rental 5k / £1,531
Phone 4.9k / £252
Pyramid / Ponzi 2.7k / 17,598
419 advance fee 2.5k / £2,563
Boris Becker Trial: 24 counts under Insolvency Act: BBC News: 21 Mar 22 and 28 Mar 22.
10.5m suspicious emails reported in 2 years: 76k online scams removed: NCSC: 18 Mar 22
On the trail of Britain’s 400 fake banks: Companies House & not FCA registration: The Times: 12 Mar 22.
Bank transfer fraud victims lose £28,000 an hour: “banks routinely rejecting refund claims unfairly” 9 Mar 22: Which?
Lord Agnew questioned on COVID loan fraud: HoC Treasury Select C’tee: 8 Mar 22 and Transcripts of BEIS C’tee 15 Mar 22.
UK’s most wanted woman … arrested in Spain: absconded from 2013 £1Bn mobile MTIC trial: BBC News: 2 Mar 22.
£9.4m fine for online operator 888: social responsibility and ML failings: Gambling Com: 1 Mar 22
EU & ABROAD:
$140 Civil Penalty against USAA Federal Savings Bank for Violations of Bank Secrecy Act: wilful failure to implement and maintain an AML program: US Office of Strategic Coms: 17 Mar 22.
Wirecard CEO & 2 others arrested & charged in Germany with fraud: (inflating revenues) re collapse in 2020 owing £1.9Bn: The Times 15 Mar 22.