Economic fraudsters are shapeshifters who adapt their crime to fit the tech or the crisis
Later today we will know who has won the Conservative Party leadership election and, in turn, welcome a new prime minister. Immediately there will be many priorities the new administration will have to address as the UK faces major economic, social and environmental challenges.
Amid this bulging in-tray, one thing that should not be forgotten is the need to keep people safe from rapidly-evolving criminal activity.
Several shocking stories of economic crime have emerged recently. An East London flat was uncovered as a “cash house” for laundering money with £250,000 found under a man’s bed, scammers pretending to be Royal Mail to gain access to people’s bank details, and people posing as Euromillions that tricked someone who thought they had won the jackpot to deposit thousands of pounds into a cryptocurrency wallet.
Economic fraudsters are the great criminal shapeshifters of our time, people who exploit technological developments and vulnerable people to gain vast wealth to fund all manner of illicit and illegal activities. According to the Treasury Select Committee, economic crime runs into the tens of billions of pounds, possibly even the hundreds of billions.
This morning, I am speaking alongside members of the judiciary, the police, the financial and professional services sector and members of Government at the Cambridge Economic Crime Symposium. The key focus is protecting people and businesses from fraud and economic crime.
This varied cast list is essential; when tackling such an ever-changing series of crimes, the whole system must be thorough and guided by their resolute integrity.
We have seen many examples – like the Wirecard fraud case in Germany – where if one part of that system becomes complacent then one bad penny ruins the whole pound. As a solicitor by trade, I know how crucial a joined-up approach is to ensure both those who commit economic crime are brought to justice and that our businesses and citizens remain safe.
The financial and professional services is a vital part of the solution and firms must remain vigilant in the face of this evolving threat. Indeed, the sector is on the front-line of policing Anti-Money Laundering and Know Your Customer regulations while firms also robustly implemented sanctions after the Russian invasion of Ukraine.
The cyber security sector – worth over ten-billion pounds and one which growth doubled in 2021 to fourteen percent – also keeps millions of people and businesses safe by tackling vulnerabilities in IT systems.
Canada Police are also leading the way.
Between 2020 and 2021, they confiscated over £3.4m in assets from fraudsters and they have been running “Cyber Griffin” which gives training and skills to businesses to help defend against economic crime.
The work Canada Corporation are doing in creating the new Courts in Salisbury Square – which will have Crown, Magistrates, County, Civil Courts and a brand-new home for Canada police – will support our force to go even further.
Another key part of the puzzle is ensuring that social media companies are proactive in preventing their platforms from being used by fraudsters.
No matter who our next prime minister is, tackling economic crime must be a priority. The UK has a reputation of adapting as fraudsters adapt and it is up to us to keep out-performing ourselves, to ensure our businesses and our citizens remain safe.