January 28, 2022 | 1 minute read

As Cyberfraud continues to increase, what can victims do?

Stevens & Bolton LLP

As widely predicted, the circumstances around the pandemic have vastly increased the incidences of fraud being suffered by UK businesses. According to research by accountants BDO, more than eight in 10 mid-sized businesses in the UK experienced fraud in 2021, up from 60% the year before, with cyberattacks being one of the most prevalent forms of fraud. With continued economic uncertainty still causing financial anxieties, and many still continuing to work at least partly from home, cyberfraud will continue to be a major concern in 2022.

The advice given by my colleagues Sarah Murray and Lucy Hall in Covid-19 and the rise of Cyber fraud: what to do and who to pursue is relevant to all types of cyberfraud, whether they are Covid-19 related scams or not. As they explain, if you have suffered cyberfraud, pursuing the fraudsters can be difficult although there may be injunctive relief that can be taken to attempt to identify them and trace the whereabouts of the stolen money. Banks may be liable for fraudulent payments not authorised by the bank account holder. Businesses whose emails are hacked by fraudsters to induce victims to pay money to them may also be liable in negligence if they failed to put in place sufficient protection in their systems and procedures.

More than eight in ten mid-sized businesses in the UK experienced fraud in 2021, up from 60 per cent the year before, research has found. The frauds cost the affected companies an average of £223,000, down from £245,000 in 2020. Businesses in professional services, leisure and finance were among those hit hardest. Cyberattacks were one of the most prevalent forms of fraud, with almost a third of respondents reporting security breaches over the 12 months. The survey of 500 mid-sized companies by BDO, the accountancy firm, found that employees were often at fault: 38 per cent of frauds involved collusion between outsiders and employees, while more than a quarter were committed against companies solely by their own employees. The move to working from home during the pandemic was cited by many as a key factor in rise of fraud...

www.thetimes.co.uk/...