With the speed and frequency of online transactions comes greater risks ranging from where we log on to the internet to how we store data. It is these risks that are so readily exposed by cybercriminals. The advancement of the cryptoasset market into mainstream finance also provides cybercriminals with further opportunities to profit by taking advantage of weaknesses in current regulatory frameworks.
Individuals and businesses are now more alert to the loss than ever before but nonetheless, cybercrime is now one of the, if not most common criminal acts in the UK.
With cryptocurrencies currently reaching new heights in value, many people are looking for ways to invest in this emerging market. However, cryptoassets are still not fully regulated in the UK, and investment in such assets is still considered high risk. Historically, cryptocurrencies have been particularly susceptible to fraud, due in part to the degree of anonymity afforded to its users. In the absence of adequate regulation of this market, the Courts are forging ahead by applying traditional legal remedies to cryptoassets based upon the recognition of cryptoassets as property. As a result, there are a number of avenues to explore legal redress in circumstances of fraud perpetrated via cryptoasset investment.
With the frequency of emails and speed of commercial and property transactions, there have been increasing numbers of losses caused by Authorised Push Payment fraud.
At Tenet, we are approached frequently by victims of Authorised Push Payment fraud (where false bank account details are provided to a party leading to misdirected payments), or events where banks are alleged to have failed in their financial crime compliance checks.
Arun Chauhan of Tenet has appeared on numerous occasions on the BBC commenting on Authorised Push Payment fraud as well as being quoted in The Telegraph about the challenge of Authorised Push Payments and has contributed to the debate as to whether banks should accept some form of liability to non-customers who have operated accounts for the fraudsters in these types of cases.
Tenet’s understanding of financial crime compliance requirements of banks coupled with our knowledge of obtaining disclosure orders from banks concerning their customers in fraud investigations has enabled victims of this type of fraud to investigate and assess whether there is merit in seeking recovery from any party relating to the loss.
In addition, Tenet have advised on solicitors’ responsibilities to the threat of cybercrime in property transactions where it has been alleged solicitors have failed to protect their clients.
This is a relatively new developing area of law and responsibility for solicitors. We have identified that in certain circumstances that claims can be pursued.
To discover more about the world of financial crime and fraud please see our Fraud Hub.