What is the likelihood of success in claims against a fraudster’s bank? David McIlroy, Jon Felce & Rosie Wild explain why financial institutions should not rest easy when it comes to fraud claims
- The issue of fraud claims against banks, and the scope of the Quincecare duty.
- A number of different cases considering the all-important question: what is the current state and likelihood of success of claims against a fraudster’s bank?
- Why banks remain vulnerable to claims by victims of fraud, and potential legislative developments which may provide further cause for concern.
In many fraud cases, banks and other financial institutions are often used by fraudsters as a vehicle for the fraud, often with the proceeds being funnelled by anonymous wrongdoers through banks and into the ether. In some cases, the fraudsters are nevertheless viable targets (see for example CMOC Sales & Marketing Ltd v Person Unknown and 30 others [2018] EWHC 2230 (Comm), [2018] All ER (D) 20 (Nov)). However, notwithstanding that, victims of fraud invariably also consider whether any other
