January 8, 2013

Fraud cases are up sharply for both companies investing in the U.K. and also for U.K. companies investing overseas.  The fact is, business fraud and investment scams are up sharply from 2011 figures.  2012 numbers have been reported by various agencies, such as the FBI and SEC in New York as up from 20 to 30% from previous levels.  London metropolitan police and Interpol have similar statistics, and even corporate offices in London are increasingly expanding their risk management and due diligence hiring, even when companies are downsizing.  Lawyers are busy working to recover losses and prosecute the criminals responsible, and international private investigators are receiving more requests than ever for due diligence services.

Business fraud and scams are more complex and changing than ever before.  Criminals today are often staying one step ahead of law enforcement by operating out of developing countries where corruption and jurisdiction problems come into play for those trying to apprehend, identify or prosecute these criminals.  Business scams now involve very impressive and real looking websites that gain the confidence of companies and investors.  Criminals then register shell companies or false business registrations in various companies, and post information in internet message boards and directories.  It is a process of gaining the victim’s trust.  Accomplices can even be used to create “references” so corporate CEO’s and individual investors feel their money is safe. 

Victims of business fraud and investment scams often find out soon after the initial investment is made or after money is sent.  In other cases, criminals can convince their victims to send a series of payments in return for false statements and documents indicating buyers are receiving a return on his investment.  Scams can involve fake stock purchase, false companies in China, gold scams and gold sellers, shipment and insurance companies, real estate offers, and suppliers in developing countries.  The combinations are endless, and the risk is greater than ever.

Company verification and international due diligence experts say it’s essential to verify in the beginning, not after you have provided payment or documentation revealing sensitive information about yourself or your company.  Due diligence and company verification service conducted by reputable and professional private investigation firms should be thought of as an insurance, say experts, and it’s a wise idea to be covered.  Ignoring the risk can be costly.

For companies in the U.K. or investing in the U.K., it has become more important than ever to verify the offers.  With the dismal economy, crooks are taking advantage of the situation by offering attractive investments that draw much attention.  All new deals should be verified.  Even for companies with their own risk management team, private investigators are able to add an extra level of protection, and obtain important evidence for clients.  Having the right evidence and information can keep you and your company safe, and out of harm’s way.

All the best,

S. Birch
© 2013 S. Birch
Different Themes
Posted by the Investigators

This copyrighted article was written and published by the editor and site author, S. Birch, or other guest private investigator, expert or contributor as stated.