Fraud Newsletter No.65 March 2022

April 5, 2022

Fraud Newsletter 65 March 2022

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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. 

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Nothing of moment. 
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[su_spoiler title=”BILLS, STATUTES & STATUTORY INSTRUMENTS” open=”no” style=”default” icon=”plus” anchor=”” class=””]

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. 

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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. 

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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. 

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