The latest Financial Ombudsman Service (FOS) figures reveal that financial fraud in 2015 escalated to a whopping £755,000,000 with 16% of scams involving bank transfers.
A number of such cases have received high profile coverage in the UK’s Press with the largest individual case, between October and December 2015, amounting to £300,000.
The Legal and Financial Services sectors are a primary target for this activity and in the most recent incident the ombudsman concluded ‘the adviser could have prevented the fraud from happening’ imposing a sizable settlement accordingly.
More than 10% of all such fraud cases emanate from email and sadly questions remain as to whether Professional Indemnity Insurance will meet such claims where no steps were taken by the email sender to prevent such an incident.
Consequential damage can be somewhat larger than the £500,000 fines that the ICO can levy under the Data Protection Act.
Earlier this month, Leoni AG, one of the world’s largest manufacturers of wires and electrical cables, informed investors that the German company had lost almost 40 million euros (or about $44.6 million) to online scammers.
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