Beyond the ‘red flags’ – The Alternative Fraud Triangle
Tenet Compliance & Litigation’s Arun Chauhan poses an alternative to the original fraud triangle as brought to the fore by Edwin Sutherland and Donald Cressey.
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Government launches new National Economic Crime Centre
It is estimated that the impact of money laundering in the UK economy is likely to exceed £90bn a year.
In order to tackle this rising problem, the government has launched a new partnership to fight economic crime across the UK.
2019 – Time to reset your moral compass
Decreasing the risk of fraud in the workplace is not just about having the right checks and balances in place but also creating a company culture with a strong moral compass.
Each member of a team – from the front line, right through to the ultimate leader – needs to feel sure-footed in always doing the right thing.
Fraud in sport – why do people cheat?
Sport – in particular international cricket – has had its fair share of time in the spotlight for cheating allegations.
FC Nantes; Enforcement of Contractual Term – right or wrong?
On 19 January 2019, Cardiff City Football Club (“Cardiff”) broke its transfer record to sign Emiliano Sala for £15m from FC Nantes (“Nantes”). As with all transfers of players, the terms of the agreement were documented in a written contract between the parties with express terms dealing with, amongst other key issues, payment of the transfer fee.
Fraud with a different motive
Last month (December 2018), Tesco hit the headlines as two of its executives were acquitted of any fraud charges in relation to the firm’s 2014 accounting fraud scandal.
Danske Bank prepares for further money laundering sanctions
Danske Bank’s acting CEO, Jesper Nielsen, recently reported that the bank has almost two and half billion dollars set aside to handle the potential fines that are still yet to come following the firm’s money laundering which dates back to 2007. The scandal involved over 15,000 customers and more than nine million transactions.
NatWest refunds fraud victim £20,000 – BBC Watchdog
NatWest customer Arthur had been defrauded following a violent mugging in December last year (2017) which left him lying unconscious in hospital.
BBC Watchdog Charlotte Higman
Charlotte Higman lost over £4,300 from her RBS bank account when a fraudulent caller requested to alter her bank details for security reasons.
The bank followed protocols and called Charlotte’s landline directly but the fraudulent caller anticipated this and diverted the call to a mobile. Once the details were successfully reset, the fraudster requests that a sum of more than £4,300 is transferred to their bank account.
During the same call, the fraudster requests a second transfer but the bank flags up one of the security questions as being incorrect and denies the transfer but still allowing the first transfer of the initial £4,300.
The bank insisted they followed protocols in using Charlotte’s landline to verify her identity so she must be aware of the transactions.
“You can hear what the caller has tried to do is put together two transactions for the full balance of the account and the bank just don’t pick it up as a warning sign,” says Arun.
“They know at the end, this is fraud but they’ve done nothing about the first transaction and that’s why Charlotte should be so critical of the bank.”
Earlier this month, RBS apologised for the incident and issued a full refund to Charlotte.
Since her case, a new voluntary code of conduct which states that if a customer or a bank, has missed warning signs, they will be liable for subsequent losses. A number of banks have now signed up to this code – hopefully preventing others from going through Charlotte’s ordeal.
“Although the new code of conduct will help to address customers’ compensations for losses, it doesn’t necessarily help to prevent future losses,” adds Arun. “Customers should be cautious of their landline and mobile calls, contacting their provider if they’re concerned of any security breaches.”
For the full story, visit: https://www.bbc.co.uk/news/business-46274644