The UK prides itself in being open for firms to set up business. It takes only £12—and 15-20 minutes—to create a new company online.
But the laxity of the country’s system for new company formations has made the UK a goldmine for scammers. And the problem is getting worse: fraud, much of it digital, now accounts for over 40 per cent of all recorded crime in England and Wales.
AI and cryptocurrency are making the scammers’ lives even easier—and boosting their return on investment.
In the latest episode of Unseen Money, Timur Yunusov and I discuss a recent Financial Times article about a London-based fraud victim, Livia Giuggioli Firth, who was conned by scammers into sending £325k from her company’s bank account.
Instead of asking for compensation from her own bank for being a victim of an authorised push payment fraud, Ms. Giuggioli Firth took the unusual step of suing the scammers’ bank in court. This forced the disclosure of the names if not of the individual scammers, but of the network of companies they used to launder the stolen money.
The court case unveiled some of the principal weaknesses in the UK’s system for deterring and catching fraudsters.
Listen to the podcast to hear Timur and me discuss:
- Why the UK is a heaven for digital fraudsters
- Why Companies House is still making it easy for criminals
- How the fintech and AI booms fuelled scams
- Who’s responsible in the UK for fighting scammers?
- How criminals second-guess anti-fraud systems and the need for ongoing due diligence
- The role of cryptocurrency in laundering stolen money
- Should Zuckerberg and Musk reimburse digital fraud victims?
- Why AI-enabled scams are certain to become more dangerous
Want to join Timur and me on a future episode of Unseen Money to talk about how scammers use Companies House registrations to aid their crimes? Drop me a line at paul@newmoneyreview.com.
Cover photo by Laili Sadr.
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The New Money Review podcast brings you the best minds from the world of money.
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