(qlmbusinessnews.com Tues, 24th Oct, 2023) London, UK —
Calls for Longer Prison Sentences as UK Businesses Fall Victim to Sophisticated Scams.
In a devastating incident, the head of a small UK business saw £1.6 million vanish in a mere 20 minutes through a fraudulent scheme. This case has sparked intense criticism regarding the response from relevant authorities.
Steve Wright, the owner of Kent Brushes, expressed strong dissatisfaction with how both his bank and Action Fraud handled the situation. He believes the case has been managed “appallingly.”
Kent Brushes, a firm dating back to 1777 and known for supplying hairbrushes to the Royal Family, fell prey to a sophisticated authorized push payment (APP) scam. Such scams manipulate and psychologically trick victims into transferring money to criminals.
In this particular case, an employee was deceived into thinking the company's funds were at risk before the criminals exploited him to gain access to the company's bank account. The fraudsters executed over a dozen fraudulent transactions, stealing £1.6 million in less than 20 minutes.
Mr. Wright's initial reaction to this theft was disbelief. He expected the bank to assist in recovering the money. However, three and a half months have passed, and the business is yet to receive a refund. No arrests have been made, and there is no sign of a thorough investigation.
Kent Brushes, with around £11 million in turnover and several dozen employees, does not enjoy the same level of protection as individual consumers. Unlike individual banking customers, who have the support of the Financial Ombudsman Service or the Contingent Reimbursement Model code, the business is not guaranteed a refund from most High Street banks.
The aftermath of this crime had implications for Kent Brushes, prompting a reevaluation of their near-term strategies, slowing the introduction of new products to maintain financial stability. Despite the setback, all employees received their salaries on time, and Mr. Wright believes the business can trade its way out of this situation.
One month after the theft, Action Fraud sent a letter indicating the case was closed. After further investigation, Action Fraud admitted to recording the details of the crime incorrectly, apologized for the oversight, and implemented measures to prevent it from happening again.
Barclays, Mr. Wright's bank, stated that it was evident the customer had fallen victim to a sophisticated scam and assured that no bank would request money transfers or sensitive data sharing. The bank also emphasized the importance of working with law enforcement to combat scams and catch fraudsters.
Adrian Searle, the director of the National Economic Crime Centre, called for longer prison sentences for those convicted of fraud, particularly in cases causing significant harm. While the maximum sentence for fraud is presently ten years, the average sentence is around two years, even in the most severe cases.
Searle is keen to ensure the emotional impact of fraud is considered when determining sentences. The UK experienced 1.25 million cases of fraud in the year to March 2023, yet only around 4% were investigated, with just over 4,000 resulting in court cases.
The Ministry of Justice responded to these calls for tougher penalties, stating that custodial sentence lengths for fraud offenses have more than doubled since 2010.
This incident highlights the pressing need for a robust and efficient response to financial fraud and the pursuit of justice for victims.
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