Welcome to the first edition of our Fraud and Cyber Insight – a quarterly update from our fraud and cyber experts on key developments across the tech, cyber and fraud sphere and practical considerations for businesses to become more fraud and cyber resilient.
In this edition, we analyse the House of Lords and Digital Fraud Committee's report on "Fighting Fraud: Breaking the Chain" and the new corporate criminal offence of a failure to prevent fraud. As organisations look to offer attractive technological solutions to their customers, we look at why authorities and providers should consider fraud risk in their integrated digital transport service platforms and the effect on their customers.
Procurement fraud continues to pose a big risk to the public sector, which is why we have taken a closer look at what procurement fraud is and the risks attributed to the procurement process. We also comment on the Supreme Court's recent judgment of Fiona Philipp v Barclays Bank UK PLC [2023] UKSC 25 and what this means in terms of the duty of care owed by banks to their customers to protect them against fraud.
Our cyber team is following the rapid developments in artificial intelligence and, in particular, has considered the risks involved in incorporating AI into systems - for example, in respect of the clear bias present in AI systems at the moment and advising on considerations for businesses before incorporating AI into systems with an emphasis on fairness. They have also looked at where the Courts stand on lost digital assets as addressed in the recent decision of Tulip Trading v van der Laan [2023] EWCA Civ 83 and the impact of the global cyber-attack by hackers known as "CLOP", which exploited a file-transfer software known as "MOVEit". What does this hack tell us about cybersecurity risks for contracting authorities and their supply chains?
If you have any suggestions or requests for future editions of the Trowers Fraud and Cyber Insight, please get in touch with one of the team.
Click the links below to view our latest insights:
"The MOVEit Hack": Cybersecurity Risks for Contracting Authorities and their Supply Chains
Prominent organisations, including the Ofcom, the BBC, British Airways, Boots and Aer Lingus, have been recently targeted in a global cyber-attack by the hackers known as "CLOP", compromising personal data belonging to their employees.
Battling bias: improving fairness in UK AI systems
Fairness is one of the five principles set out in the government's Artificial Intelligence (AI) white paper, yet it is clear that more must be done to address the bias present in AI systems.
Where do the courts stand with lost digital assets?
Tulip Trading bought a claim in the High Court against the developers associated with the blockchain networks that as the developers effectively control and run the blockchain networks, they owe its users fiduciary or tortious duties to assist them in regaining control of their property. This article looks at the Court of Appeal's decision earlier this year that there is a "serious issue to be tried" in this regard.
Changing the UK's fraud landscape
The House of Lords and the Digital Fraud Committee published its report "Fighting Fraud: Breaking the Chain" in November 2022. This report analyses the key recommendation in the HoL Report, what we would like to see in 2023 and our practical tips to protect your business against common fraud risks. Check out our short flyer as a helpful takeaway.
The MaaS movement and fraud
Why authorities and providers should consider fraud risk in their integrated digital transport service platforms.
Procurement Fraud: the real risk in today's business landscape (Part 1 of a 3 part series)
Procurement fraud continues to pose a big risk to the public sector. We are, therefore, taking an in-depth look into procurement fraud over a three part article series. This is the first of those articles in which we look at what procurement fraud is and why it poses such a big risk to the public sector.
Philipp v Barclays – Your Fraud, Your Problem
On 12 July 2023, the Supreme Court handed down judgment in the case of Fiona Philipp v Barclays Bank UK PLC [2023] UKSC 25. This case has brought back to the fore the question of the duty of care owed by banks to their customers to protect them against fraud.
