Fraud Team
What is fraud? On 15th January 2007 the Fraud Act 2006 commenced and for the first time provides law enforcement agencies, industry and the public with a statutory definition of fraud along with a number of other new offences. At the same time the new Act repealed old offences of deception under previous legislation that due to developments in technology were no longer fit for purpose. Under the new Act fraud can be committed in three different ways;
- Fraud by false representation
- Fraud by failing to disclose information
- Fraud by abuse of position
Further information on these and other new offences under the Fraud Act 2006 are available to view under separate section devoted to this new legislation.
Some Common Types of Major and Complex Fraud
Identity Fraud
West African 419 Fraud
Long Firm Fraud
False Accounting
Lottery Fraud
Fraudulent Trading
Fraud Act 2006
The fraud investigators are responsible for the investigation of allegations of serious or complex commercial fraud, industrial fraud, mortgage fraud and allegations of fraud covering a wide geographical area, which is beyond the normal capabilities of area resources, together with allegations of public sector corruption and electoral fraud. They will provide a resource for the investigations of fraud where recovery, analysis and presentation of computer based evidence is a fundamental requirement and will provide a level of resilience to computer crime investigations. The financial value of alleged offences will not constitute the overriding issue in respect of acceptance however it may be used as an indicator or support other evidence of suitability for investigation; i.e. maters of public interest or national publicity.
If you believe that you have been the victim of a fraud in the first instance you should report the matter to your local police station. You should take with you as much information as possible including copies of any documents you have which may support your complaint. It may be that we feel that your complaint is not a matter that can be best dealt with by the police under the criminal law. If this is the case we will advise you of who best to contact and assist you in this process if we can. If your local police station believes that the matter is of such a serious or complex nature or beyond their resources to investigate they may refer the matter to us for consideration. This does not of course preclude you from contacting us direct for advice or guidance on any fraud related matter.
Protect Yourself From Fraud
There are many ways in which you can protect yourself, your family and your business from fraud.
- Beware of cold callers. Generally cold calling for investment business is illegal so be wary of apparently generous offers out of the blue.
- Beware of schemes that offer unusually high rates of return when compared to banks or building societies. Generous offers may be just a means of arousing your interest in a dubious scheme.
- Never make a major financial decision on the spot. Always take your time to consider what you actually need.
- Investment businesses are required to be authorised by the Financial Services Authority (FSA)As a general rule don’t get involved with an unregistered organisation. The FSA maintains a register of accredited businesses, which can be easily checked. Information on the FSA can be obtained from their web site www.fsa.gov.uk
- Be wary of individuals who insist on dealing in cash. The use of cash may indicate that proper accounts are not kept. Be particularly careful about paying cash in advance.
- Do not put all your eggs in one basket. Never commit your life savings to a single investment.
- Be cautious when considering investing in an organisation based outside the jurisdiction of the U.K. courts. In the event of problems it may be practically impossible to seek legal remedy.
Protect Your Business From Fraud
- Check all references
- For your own staff whenever possible have separate posts for financial matters and define each persons responsibilities clearly and make sure they know who to report to should problems arise
- Avoid having indispensable staff who are the only ones who know the working part of your business.
- Many frauds require regular activity by the offender. Make sure your staff take regular breaks from work. The worker who you believe to be dedicated may be the one defrauding you. Once the fraudster has started he or she may need to remain in place constantly to prevent discovery.
- The bigger and more sophisticated the fraud the more likely that senior staff are involved.
- Review your management control systems for weaknesses. Take specialist advice if you are uncertain.
- Have a whistle blowing policy and anti fraud policy in place and make sure all staff are aware. You have a legal and moral obligation to protect whistle blowers.
North East Fraud Forum (NEFF)
Durham Constabulary is a founder member of the NEFF, which was launched in March 2003. This project is aimed at all levels of business in the north east area of England covering the policing areas of Northumbria, Durham and Cleveland involving public, private and voluntary sectors of business.
The culture of regional and U.K. business has a tendency to inhibit proper fraud prevention. The aim of the NEFF is to promote fraud awareness and successful fraud prevention strategies across the region by creating a culture of transparency with better flows of information and open discussion aimed at promoting more widespread understanding and better sharing of ideas.
Since it’s inception the NEFF has ran many conferences, masterclasses and training events all for the benefit of local businesses, regardless of size.
For more information on the NEFF and how to become a member visit the web site at www.northeastfraudforum.co.uk
One final point.....
“IF AN OFFER SEEMS TOO GOOD TO BE TRUE IT INVARIABLY IS!”
