Fraud Intelligence

In his preface to “Money Laundering - A Training Strategy”, which was published recently, Detective Inspector Cliff Knuckey, head of the Metropolitan Police Money Laundering Investigation Team illustrates with a true case why staff must be trained to recognise suspicious transactions.

Today the most common means we have for fast and accurate personal identification is the plastic card – bank cards, driver licences, membership cards, national identity cards – and as with the passport, the possession of these is seen as significant proof of identity. Sadly, growth in fraud through access to sophisticated card counterfeiting technologies and from the exploitation of anonymous (ie, “cardholder not present”) usage, is raising the stakes for those who would like to grow useful or profitable applications based around cards and card-borne identity credentials. Biometric technologies have a role to play in the elimination or recalculation of fraud risk in many of these applications: but, writes Calum Bunney, there are many biometric factors to consider.

In his third article on recent cases on misfeasance, fraud and dishonesty, Sanjay Bhandari of Baker & McKenzie expands on last month’s coverage of the House of Lords ruling in Twinsectra Limited v Yardley [2002] 2 All ER 377 to consider the practical implications for liability for assisting a breach of trust and the meaning of “dishonesty”. He also looks at freezing orders, the protection of confidential sources and limitations on Inland Revenue powers to investigate tax evasion.

Over recent years factoring and invoice discounting have witnessed phenomenal growth, matched by expansion in associated fraud. In previous articles in this series (see Fraud Intelligence, February 2002 and March 2002) Bob Scott, a partner in the international law firm Hammond Suddards Edge, has looked at why the receivables financier is vulnerable, the types of fraud that invoice discounters face, the warning indicators and preventive measures. In this article he assumes the worst and considers the steps that the invoice discounter should take when a fraud is discovered.

Sugar buyers have been stung by fraudsters offering consignments of non-existent sugar via the Internet, the International Chamber of Commerce has warned. It says that some websites are using “supermarket sales tactics” to advertise..

Russian, Chinese, Taiwanese and South Korean companies are most likely to make corrupt payments in developing countries according to Transparency International’s 2002 Bribe Payers’ Index (BPI). However, Western nations do not escape..

International cooperation is to be stepped up to fight travel document fraud, with border authorities increasingly anxious to restrict the movement of would-be terrorists. The European Union Council of Ministers (justice and home affairs) has agreed..

Timon Molloy, Editor