Financial Crime

The rise of financial scams and obtaining freezing orders against perpetrators

Financial scams are no longer opportunistic crimes in today’s hyperconnected era – they are a cyber epidemic. Modern scammers are becoming increasingly sophisticated, finding new methods to trick their victims. Online fraud can vary from cryptocurrency and impersonation scams to larger scale fraud like investment schemes. Recent research shows that, in 2024, UK victims lost a total of £11.4 billion due to financial scams.

One of the most effective ways to combat financial fraud is to increase awareness of how scammers operate, to appreciate the need for swift action once you have been scammed and to understand the steps to take to help recover stolen monies and assets before they are dissipated.

How to recognise a scam

Scammers are typically highly skilled manipulators who employ a range of techniques to target victims. Examples include phishing scams, investment scams, crypto scams, romance scams and smishing (sending fraudulent text messages)  to name just a few. There are increasing concerns that developments in AI, such as deepfakes, will be relied on to make scams more sophisticated and harder to recognise.

Warning signs of a scam include:

• Suspicious accounts: scammers may use accounts which have inconsistent personal details, are created recently, or lack important information about the account holder’s identity.
• High rates of return: scammers may entice victims by proposing an investment with high rates of return, a strong guarantee and very little risk of loss.
• Claims of credibility: con artists are artists for a reason – they paint a perfect picture of themselves as someone verified and reliable to gain your trust.
• Limited time of offer and pressure: scammers may push victims to make a quick decision, reducing their ability to think or recognise they are being scammed.

Warning signs you have been scammed include:

• Receiving confirmation emails of a purchase you did not make or emails requesting you to proceed with a payment.
• The scammer stops all contact after getting payment from you or information they requested.
• Money disappearing from your bank account.

Post-scam steps

Once you realise you are the victim of a scam, it is important to act swiftly. Here are some short-term, immediate steps to take:

1. Contact your bank, explain the situation and ask them to take immediate action to prevent any further financial loss. The bank can freeze your account and stop pending transactions, which can prevent money from leaving the account.
2. Preserve all the communications with the scammer. It is important to retain documentary evidence in case you would like to bring legal action later on.
3. Reset your passwords.
4. Warn contacts that your accounts have been compromised.

How we can help

Even after a fraud, it may be possible to recover your losses. If you have transferred money to a fraudster online through your bank, you can request a refund from your bank or file a dispute. Taylor Hampton can help you make this request, as well as appeal any decision if your claim for a refund is refused.

Further, the fraudster may try to dissipate the stolen monies to prevent them being traced. One effective way to prevent money being dissipated is to obtain a freezing injunction from the court. These injunctions can be used to “lock” bank accounts, preventing the fraudster from accessing or misappropriating funds. They can also stop assets from being moved. An example of this is where the fraudster has attempted to launder stolen money into property, a freezing order can prohibit their ability to execute transfer deeds.

At Taylor Hampton, we have extensive experience obtaining freezing injunctions from the court at speed. We can also obtain:

• Worldwide Freezing Orders: preventing monies and assets from being moved abroad.
• Norwich Pharmacal Orders: requiring the provision of information from third parties to help track stolen monies.
• Search Orders: allowing a party to enter the premises of another to search for certain items.

In some cases, such as a phishing fraud, your data may be obtained or exploited, breaching UK GDPR regulations and the Data Protection Act 2018. In such circumstances, you can report the incident to the Information Commissioner’s Office (ICO), who are responsible for enforcement following data protection breaches. As experts in data and privacy-related matters, Taylor Hampton can help you report incidents to the ICO or help bring a legal claim for damages or an injunction in cases of misused data or data breaches.

It can be incredibly overwhelming and upsetting to realise you have been victim of a scam, not least financially devastating. It is, however, important to act as quickly as possible. At Taylor Hampton, we have the necessary expertise to give you accurate advice on steps you can take after a scam, making the process of tracing, preserving or recovering monies and assets as swift and stress-free possible. We have great experience in obtaining freezing orders against fraudsters in appropriate circumstances.

Please click here to get in touch with one of the team.