Introductory guide to fraud in financial services

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Introductory guide to fraud in financial services
  • Overview
  • Key actors tackling fraud in financial services
  • Financial Conduct Authority (FCA)
  • Payment Systems Regulator (PSR)
  • HM Treasury
  • Serious Fraud Office (SFO)
  • National Crime Agency (NCA), the National Economic Crime Centre (NECC)
  • Action Fraud and the NFIB
  • UK Finance
  • More...

Introductory guide to fraud in financial services

This introductory guide provides an overview of common types of fraud in financial services. It considers compensation and redress for victims of fraud, including through the Contingent Reimbursement Model Code for Authorised Push Payments (APP) scams and civil fraud claims. It considers the role of the FCA and other UK authorities involved in tackling fraud in financial services, and considers relevant FCA rules and guidance on systems and controls relating to fraud. It also outlines the criminal fraud offences and provides links to detailed Lexis®PSL materials.

Overview

As a global financial centre with an open economy, the UK is vulnerable to economic crime ranging from money laundering to fraud and market abuse. Fraud is often the predicate offence to money laundering and terrorist financing; frequently it is serious and organised. Fraud often involves both external and internal perpetrators — committing fraud and subsequent money laundering generally necessitates the services of corrupt individuals within financial institutions and/or professionals such as accountants or lawyers.

Fraud often follows from data breaches with fraudsters harvesting personal and financial information —using ‘mule networks’ of bank accounts either of individuals recruited by criminals or through unwitting members of the public, and/or using identity fraud documentation to conceal the criminals’ identity in order to launder their profits. 

According to the Home Office, fraud is now the second most

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