12 March 2019
Controlling your money - don’t lose interest
Lawyers in the dispute resolution group were instructed on short notice to assist with recovery efforts following the realisation by an international manufacturer that a substantial payment had been elicited from the business via an international fraud.
After realising that a payment of almost half a million euros had been procured by fraudsters impersonating both business leaders and a City private equity lawyer, the business took immediate action by alerting its banking provider and seeking external advice.
The speed of that reaction proved critical. Whilst the 'immediate' international chaps payment could not be stopped, the speed of the business' notification, together with a combined approach taken by fraud teams within the UK bank, law enforcement operatives and lawyers, allowed enough time for the foreign recipient bank to be alerted and its account frozen, before funds could be disseminated.
Although the funds were secured and returned within the week, the result could have been very different. This situation highlights the importance of regularly reviewing security and fail-safe procedures, and ensuring that staff are trained to be alive to the sorts of attacks that businesses are facing on an increasing basis.