Fraudsters make hay while economy grows

Fraudsters make hay while economy grows

News Fraudsters make hay while economy grows According to the latest KPMG Fraud Barometer, money lost to scams totalled 717m a 17 per cent fall on 2013. However, a 25 per cent rise in cases before the courts suggests a rise in the number of victims. KPMG, the nancial consultancy, said some of the most notable cases involved conmen abusing positions of authority, making it clear that organisations needed to pay more attention to staff who wield inuence. The bi-annual survey also highlighted cases of extensive payroll fraud, cowboy trading and fake investment opportunities. In one case, twin brothers defrauded more than 70 people out of 1.6m. Their victims lost up to 110,000 each, after they were persuaded to invest in properties in Bulgaria and Cape Verde, when the money was, in fact, used to repay the fraudsters business and personal bank overdrafts, as well as fund shopping sprees. Preying on peoples fears or worse, creating fear where it doesnt exist is a tactic that conmen adopt when times are tough, said Hitesh Patel, UK forensic partner at KPMG. Pensioners in particular are seen by fraudsters as easier targets than others. Increased freedoms around pension investments mean they suddenly have their life-savings available to them, but often are unclear where best to keep it safe. Data compiled for the Fraud Barometer in recent years has revealed nancial institutions and government bodies to be the biggest victims of fraud. However, the data for 2014 showed that commercial businesses were gaining prominence again. Analysis indicates that the number of cases where companies fell victim to a scam rose from 64 to 107, with the value of frauds totalling 98m, compared with 76m in 2013. Patel said: Fraudsters are making hay from the corporate and investor communities, which are dropping their guard as we see an upturn in economic fortunes. Labour unveils its public health aims The Labour Party has released its manifesto on public health ahead of the general election in May. In a keynote speech at Demos, London, in January, Labours shadow health secretary Andy Burnham pledged to take tougher action to protect children from commercial pressures and the harm caused by alcohol, sugar and smoke. During the event, hosted by the crossparty think-tank, he said that if elected, Labour would empower adults with information to make healthier choices and support to get active. He said the party would introduce maximum limits on levels of fat, salt and sugar in food marketed to children. To support the population as a whole, Labour would pursue improvements to food labelling to help people better understand what they were eating, including working at EU level to introduce trafc-light labelling of packaged food. Watch out for more coverage of the main political parties manifestos in future issues of TS Today. AFRICA STUDIO / SHUTTERSTOCK Legal Ombudsman gets new powers to deal wth CMCs Big Brother is watching who can open your door A new report looking into the number of local authority staff allowed to enter a home or workplace has been published by Big Brother Watch, the British civil liberties and privacy pressure group. The report, Entry allowed?: The number of local authority staff with the power to enter your home or workplace, lists the local authority workers who have powers of entry without the need for a warrant. There are more than 19,375 local authority officials with powers of entry, in 429 local authorities. But the reports authors state: Unless life or property is in imminent danger, or a crime is taking place, officials should always require a warrant before attempting to enter our homes and businesses. If their purpose does not meet these criteria, then council officials should be supervised by a police officer. It recommends that the number of individuals with powers of entry should be reviewed, and an enforceable code of practice for powers of entry be published as a matter of urgency. The Legal Ombudsman has been given the go ahead by the government to deal with complaints about claims management companies (CMCs), starting from 28 January 2015. The move is a part of the governments response to the Lord Chancellors consultation on the handling of complaints about CMCs, published last November. The Claims Management Regulator has been working closely with the Legal Ombudsman a free service to consumers to ensure the activation of its powers goes as smoothly as possible. The costs of the service will be met by the CMC industry. Maggie Finnie, of the Ministry of Justices claims management regulation unit, said: This is excellent news for consumers. The Legal Ombudsman will be able to consider complaints about poor service by CMCs, and make compensation awards to consumers, which the regulator is unable to do. However, the claims management regulation unit will continue to deal with malpractice and will receive referrals about any rule breaches (conduct issues) identified by the Legal Ombudsman, in a similar way to trading standards receiving referrals from Citizens Advice Consumer Service. The unit is currently sharing information about how the industry operates and the types of issues consumers have raised with the regulator. The claims management regulation unit has now also been granted the power to impose financial penalties on CMCs guilty of malpractice. Finnie added: This is an exciting and effective new enforcement tool for us to deal with misconduct where the existing sanctions of varying, suspending or cancelling authorisation to provide claims services might not be the appropriate action. It is understood that the claims management regulation unit will start issuing financial penalties from early this year. New policy director appointed at TSI TSI has appointed Melissa Dring as its new director of policy. Tasked with developing an evidence-based policy framework, Dring will work with TSIs council, board and lead ofcers. Her role will also involve responding to emerging legislative and policy changes. As policy-makers and stakeholders gear up for this years General Election, Dring will play a key role in ensuring TSIs policies and ambitions are heard. Dring said: I am pleased to be taking up this role in what is set to be an exciting year, with an uncertain general election providing a great opportunity to engage with politicians and other stakeholders. The period of nancial austerity has been challenging for trading standards services across the UK, with shrinking resources and growing workloads. I look forward to raising the prole of the profession and promoting trading standards work to protect consumers and support business through a number of exciting projects we have planned. Chairman of TSIs Board of Directors, Carol Brady, said: I am delighted that Melissa has been appointed as our director of policy. The skills and experience she brings will add real value to TSI and further strengthen our executive team. Melissa joins at a time of real change and challenge for our profession, and so the task she undertakes in raising the prole of the important work trading standards ofcers do couldnt have come at a more critical time, especially when the profession has faced more than 50 per cent in budget cuts.