Fraud Intelligence

The need for powerful tools to gather evidence is particularly important in fraud cases. By their nature, frauds will often involve complex acts of concealment by the fraudster both as to his underlying acts complained of and the whereabouts of any proceeds and other assets. As a result, fraud litigation tends to involve a very high focus on forcing defendants and third parties to disclose evidence. Unlike many other forms of litigation, this process of factual investigation often focuses on the period before litigation is commenced so as to avoid or reduce the risk that evidence and assets will disappear.

Gavin McFarlane of Dechert and London Guildhall University

How can businesses manage online risk? Robin Dahlberg , UK Managing Director of Internet Security Systems, argues that companies can ensure and insure their security through technical testing.

King v Walden [2001] STC 822, a recent decision of the High Court, confirms that the imposition of penalties for the fraudulent or negligent delivery of incorrect income tax returns amounts to a criminal charge under Article 6(2) European Convention on Human Rights (ECHR). This follows, but goes further than, a line of decisions that penalties for the dishonest evasion of VAT are criminal, which have since been confirmed by the Court of Appeal in Han & Others v Commissioners of Customs and Excise [2001] EWCA Civ 1048. The protections enshrined in Article 6 may have wide-reaching implications for the investigation of tax liabilities and for the conduct of penalty hearings. Indeed, they may affect the admissibility of evidence obtained through the tax authorities’ exercise of their compulsory powers. Peter Burrell and Susannah Cogman of Herbert Smith consider the case in detail.

Due diligence and continuing review of borrower status are essential if banks are to reduce their exposure to fraud. Andrew Durant of BDO Stoy Hayward’s Forensic Accounting Practice draws on his own investigations experience to identify some of the warning signals.

“Nimda”, the latest virus to spread fear amongst computer users worldwide, is the most sophisticated rogue program to have struck so far, say security experts. It is a mass-emailing worm which attacks 16 known vulnerablities in Microsoft..

A legally binding international anti-corruption convention is to be forged by the United Nations, following agreement by representatives of 95 states on the terms of reference. Rubber-stamping is expected by the UN General Assembly later this year...

Hackers and viruses pose the principal risk to e-business according to a new cybercrime survey. The study, which was sponsored by the Fraud Advisory Panel, the Confederation of British Industry (CBI), PricewaterhouseCoopers and Armor Group in..

Timon Molloy, Editor • The Fraud Advisory Panel can be contacted at Chartered Accountants’ Hall, PO Box 433, Moorgate Place, London EC2P 2BJ; tel +44 (0) 20 7920 8721; fax +44 (0) 20 7920 8547; email fap@icaew.co.uk