Types of banking fraud
Banking fraud is a common type of fraud and many people will have been touched by some kind of banking fraud. On a consumer level, there are many different types of banking fraud scams designed to take money from depositors’ accounts, while there are others which use more complex means, such as accounting fraud and the LIBOR scandal, where some banks reported false interest rates to benefit their derivatives traders.
Our expert banking fraud lawyers work across the serious fraud spectrum and can work on cases that include:
With any of these offences, often the employees of the financial institution thought to be involved and the investigation often starts with an internal investigation and possible disciplinary procedures. If you are made the subject of any such investigation, then it is important that you seek expert legal advice.
The investigation can also be instigated by an outside agency, such as the Financial Conduct Authority or the police. Often the City of London Police investigate these matters, due to their proximity to the banking community in the city and through ‘Action Fraud’, which is a vehicle for reporting fraudulent activity. At this stage, individuals are likely to be invited for interviews under caution or to participate in regulatory proceedings, or both. What is said in these interviews can be used as evidence if needed, so it is vital to get the right legal advice at this stage. We have the specialist knowledge required to deal with banking fraud and getting early legal advice can be key to your defence. If you are a financial professional, you need to be reassured that your lawyer has a full understanding of the banking procedures at the heart of the allegation.
At Stephensons, we are a nationwide legal firm with offices in the City of London. Our serious fraud lawyers have been ranked as a top tier fraud defence legal firm and we have the knowledge, resource and the expertise needed to deal with agencies such as the FCA and the City of London Police. To aid your defence, we can call upon independent experts such as accountants and computer analysts. We also have excellent connections to specialist banking fraud barristers and QCs.
Our experienced team of banking fraud solicitors has the expertise and knowledge to look at the required level of detail to defend you. Contact our specialist team on 01616 966 229 or complete our online enquiry form and we will contact you directly.
Online banking fraud
Online banking fraud is becoming the most common form of banking fraud. Typically used to target individual customers, this type of fraud is always changing and is difficult to prove. There are several types of online banking fraud, which include:
- Card payment fraud
- Authorised push payment
- Banking details being stolen due to hacking, phishing or other means
- Mobile banking fraud.
- Counterfeit card fraud
We have dealt with several online banking fraud cases and have the experience necessary to help you in your defence. Contact our expert online banking fraud defence solicitors today on 01616 966 229.
Banking fraud FAQS
Banking fraud and the laws that surround it are complicated and can cross international boundaries. Allegations of banking fraud are serious, and it is easy to be accused of banking fraud even if you are innocent, as the agencies involved will assume those who work for the company committing the fraud will have, at least, some knowledge of the crime. However, whatever your particular involvement in the case, our professional banking fraud solicitors have the knowledge and the resource to delve into the detail needed to defend your case. Contact us today on 01616 966 229.
What is banking fraud?
The basic definition of banking fraud is the use of illegal means to gain funds, assets or property held by a financial institution or its depositors and customers. Sometimes banking fraud can come under false accounting or, as in the case of the LIBOR scandal, false reporting. There are many different types of banking fraud, which include:
- Using fraudulent methods to obtain bank account details and other sensitive information
- Mortgage fraud
- Scams where fraudsters convince victims to transfer money. Also known as advanced push payment
- Land banking
- Investment fraud
- LIBOR (although the serious fraud office has now shut down its investigation).
What is the sentence for banking fraud?
Known as a white-collar crime, the type of sentence that may be received if you are convicted of banking fraud will depend on several factors, including:
- Culpability – this includes your role in the fraud and your level of knowledge
- The level of actual or potential harm caused to the victim
- The type of banking fraud
- The impact of the crime on the victim(s) and how it has affected their lives
- Whether or not a guilty plea has been submitted
- Any attempts to hide or destroy evidence
- Previous convictions
- Mental health issues.
Banking fraud falls under the Fraud Act 2006 and the Theft Act 1968. A charge of fraud by false representation, fraud by failing to disclose information, fraud by abuse of position or conspiracy to defraud has the maximum sentence of ten years in prison. A charge of false accounting has a maximum sentence of seven years in prison. If you do receive a custodial sentence, you may also face other penalties such as:
- Disqualification from being a company director
- A substantial fine – the amount will be determined by the amount of money the fraudsters have taken
- Confiscation order – this means any proceeds from the crime will be confiscated and may be used to compensate victims.
