by Michel Klompmaker

Economic crime scholarship presents an organisation as a double-edged sword. On the one hand, organisations are cheated by their employees, discriminated by corrupt public officials, and face cyberattacks, whereas on the other hand, organisations evade taxes, defraud their customers, and cheat competitors. While fraud, corruption and other forms of economic crime cause immense losses to individual organisations as well to society, many of those crimes are committed by organisations themselves. On Thursday, February 4, 2021 the 2nd Winter Economic Crime Symposium – Organizations: Beyond Victims and Perpetrators was held online by the Centre for Counter-Fraud Studies at the University of Portsmouth. The event sought to explore the network of relationships inside and between organisations and how it should not be reduced to two groups, victims and perpetrators. With a theme focused on economic crime, several professionals gave keynote presentations on a range of topics from brand protection, corruption, corporate compliance, foreign bribery, and intellectual property (IP) crime. The Risk & Compliance Platform Europe was also a media partner and covered the event via its website. This is part two. Continue reading…

by Michel Klompmaker

We recently had an opportunity to speak together with Nick Palmer who is the Head of Global Business at Group-IB. Group-IB is an international provider of solutions aimed at investigating high-tech crime, detecting and preventing cyberattacks, online fraud, and intellectual property theft. Nick Palmer was also a moderator of Group-IB’s CyberCrimeCon online event held last year in November. Our discussion covered several areas of interest relating to Group-IB’s operations, its recent opening of its European headquarters in Amsterdam, The Netherlands, how organisations in general can safeguard against cyberattacks and what the main risks for organisations are today.
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With the support of Eurojust, the Dutch fiscal authorities have halted a major scam to avoid the payment of VAT via trading companies. By setting up a string of enterprises in the Netherlands, Hungary, Poland and Croatia, a network of traders in Secure Digital (SD) memory cards for mobile phones allegedly defrauded the Dutch fiscal authorities for an estimated amount of EUR 9 million between 2017 and 2020. During an action day supported by Eurojust, 13 places have been searched and communications equipment, documents and digital evidence was seized. Continue reading…

by Michel Klompmaker

Economic crime scholarship presents an organisation as a double-edged sword. On the one hand, organisations are cheated by their employees, discriminated by corrupt public officials, and face cyberattacks, whereas on the other hand, organisations evade taxes, defraud their customers, and cheat competitors. While fraud, corruption and other forms of economic crime cause immense losses to individual organisations, as well to society, many of those crimes are committed by organisations themselves. On Thursday, February 4, 2021 the 2nd Winter Economic Crime Symposium – Organizations: Beyond Victims and Perpetrators was held online by the Centre for Counter-Fraud Studies at the University of Portsmouth. The event sought to explore the network of relationships inside and between organisations and how it should not be reduced to two groups, victims and perpetrators. With a theme focused on economic crime, several professionals gave keynote presentations on a range of topics from brand protection, corruption, corporate compliance, foreign bribery, and intellectual property (IP) crime. The Risk & Compliance Platform Europe was also a media partner and covered the event via its website. This is part one in a series of five articles on the event.
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The disruption created by technological progress in the market for financial services arises from (i) an expanded set of services offered to consumers; (ii) the processes and distributional channels followed by firms in offering those services; and (iii) the arrival of new (technological) suppliers of those services. These developments are bound to generate profound changes in the market structure, as non-bank fintech players are now becoming very active in offering services that in the past were predominantly offered by banks. Their presence in the payment service area is already quite significant. However, they are also gaining weight in the provision of wealth management services, the sale of insurance products and loan underwriting. Those services are increasingly being provided within established technology platforms run by large companies (big techs), where a variety of financial and non-financial products are offered by a plurality of suppliers that may or may not be linked to the platform owner. A growing number of products and players increases supply, lowers the cost of financial services and encourages financial inclusion. However, it may also generate risks for the stability and adequate functioning of the financial system. Continue reading…

The European Insurance and Occupational Pensions Authority (EIOPA) recently published its Risk Dashboard based on the third quarter of 2020 Solvency II data. The results show that insurers’ exposures to macro risks decreased from very high to high level, while all other risk categories remain at medium level. Going forward, European supervisors expect an increase in credit, market and underwriting risks over the next 12 months, reflecting concerns over second lockdowns due to new waves of the pandemic as well as potential cliff effects once fiscal support measures will be over. With regards to macro risk, Gross Domestic Product (GDP) growth forecasts, amid upward revisions, show the strongest expected decline in the last quarter of 2020 and the first recovery in the second quarter of 2021. However, potential cliff effects have to be considered in the future. The registered unemployment rate remained at the very high level in September. The 10 year swap rates decreased reaching new lows. Fiscal balance deteriorated as a consequence of the supporting fiscal packages by governments. Continue reading…

by Dina-Perla Portnaar

The Ashton Whiteley Scam illustrates how financial crime really works. Not a lot of personal cases were shared with the public before in order to make financial crime tangible. Here is an outline of the events given by one of the many victims of the Ashton Whiteley Scam that took place a couple of years ago. The man shared his story with me, which we have shared in a couple of articles. Here is part three, the last one.
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The FCA is issuing a warning to the public as reports of ‘clone firm’ investment scams increased by 29% in April 2020 compared to March, when the UK went into its first lockdown. Action Fraud data reveals consumers reported losses of more than £78 million between January-December 2020. Throughout 2020, consumers reported average losses of £45,242 each on average when investing with fraudsters imitating genuine investment firms. The data has been released as part of the FCA’s ScamSmart campaign, alongside advice to help investors avoid fake firms and protect their hard-earned cash. The ongoing financial impact of coronavirus (Covid-19) may also make people more susceptible to these types of clone scams. 42% of investors say they are currently worried about their finances because of the pandemic, and over three quarters (77%) have or plan to make an investment within the next 6 months to help improve their financial situation. However, the FCA highlights even the most experienced investor could be at risk. Three quarters (75%) of investors said they felt confident they could spot a scam. However, 77% admitted they did not know, or were unsure what a ‘clone investment firm’ was. Continue reading…

Dr. Jens Weidmann, President of the Deutsche Bundesbank and Chair of the Board of Directors of the Bank for International Settlements, recently gave a speech at the ILF Online-Conference on “Green Banking and Green Central Banking: What are the right concepts?” at the Goethe University Frankfurt on 25 January 2021. Ladies and gentlemen, I would have been only too happy to meet you all in person. Even more so, as from my office it would only have been a short walk to the campus of the Goethe University. And allow me the following side remark: There can hardly be a better person to name a university after than Johann Wolfgang von Goethe. Goethe combined many disciplines and subjects, and not just as a poet, dramatist, novelist and critic. He also conducted research in various natural sciences, studying minerals, plants, human anatomy and meteorology, to name a few. And let’s not forget that he reflected on the nature of money, even serving as finance minister in the Duchy of Saxe-Weimar-Eisenach, a small, former state in what is now Thuringia. Goethe seems to be a true all-rounder, able to turn his hand to any number of things. Continue reading…

by František Nonnemann

Twitter International Company (TIC), part of the Twitter Group, was fined 450.000 EUR by the Irish data protection authority for insufficient data breach management. The Irish Data Protection Commission found that TIC did not report significant data breach in the time limit of 72 hours as stated by the General Data Protection Regulation (GDPR). Furthermore, the company did not have the process for data breach management under full control and did not keep appropriate records of all data breaches that occurred. Continue reading…