Jonathan Fisher QC reports on responding to new fraud risks in the COVID-19 era
In brief
- COVID-19 scams: benefitting from the panic and uncertainty in the global health crisis.
- COVID-19 investment frauds: promises of high returns and ethical importance.
- COVID-19 revenue frauds: the need for thorough government checks on business.
- Desperation frauds: breeding a different kind of criminal activity born out of opportunism and desperation.
- Investment frauds: banks withdrawing support from struggling companies.
The COVID-19 pandemic will have lasting consequences for the fraud landscape, which should be understood from several perspectives. In regulatory terms, it is important to appreciate the new forms of fraud to keep abreast of threats to the financial system. From a criminal law perspective, the possibility of money laundering always hovers. Considering civil law exposure, there are potential claims and possible constructive trust liability which, although difficult to establish, is a significant growth area. The ways in which practical and theoretical interpretations of risk and the legal framework will need to adapt to these new threats is paramount
