CDR Essential Intelligence: Fraud, Asset Tracing & Recovery

It is with great pleasure that we welcome you to the
fourth edition of CDR Essential Intelligence: Fraud, Asset
Tracing & Recovery. Peters & Peters Solicitors LLP has
been delighted to serve again as the Contributing
Editor to this comprehensive guide on the practice of
global litigation in this critical sphere of work.
The past 12 months have been difficult to quantify
as both a return to normality and the theme of change
dominated. In much of Europe, the UK and North
America, COVID-19 and the dreaded lockdown have
become a distant memory. We have moved on to new
issues: the war in Ukraine; high energy prices; and the
resultant cost-of-living crisis, to name a few. In Asia,
however, we are only now seeing the abandonment
of China’s zero-COVID strategy and you, our dear
reader, will probably know more than us about the
results of this drastic policy change. COVID-19 had
provided numerous opportunities for the fraudster
with contracts fast-tracked by government departments,
and generous loans offered with minimal
oversight. A return to some normality has led to an
uptick in investigations and litigation as governments
and banks attempt to recoup their losses.
As we all sat in lockdown the real beneficiaries were
the technology companies that kept us connected
with friends, family, colleagues and our finances. The
digital communications sector has provided lucrative
opportunities for fraudsters and the sophistication
of attacks h as i ncreased. C ybersecurity h as b ecome
our watchword as we observe the high numbers of
ransomware a ttacks. G lobal c yberattacks i ncreased
by 38% in 2022; however, the UK saw an increase
of 77% and the US 57%. These sobering statistics
also highlight that the areas most affected by attacks
were government, healthcare and education/research.
Cybercriminals have been on the march since COVID
and are reaping the benefits of remote working by
attacking business collaboration tools. They have
also focused on areas which are data heavy, and can
offer stark, real-world consequences from technology
on the attack, such as in hospitals.
The growth in digital finance offerings, the lack of
regulation and the attraction of cryptocurrencies also
ensnared many as they isolated. Indeed, since our
last edition, cryptocurrencies have provided a neverending
flow of fraud allegations, financial collapses
and bankruptcies. The collapse of cryptocurrencies,
as well as their fluctuating value, have sent shockwaves
through the markets and highlighted the risks
for the most honest investors, whether gullible, overt,
optimistic or simply unlucky. Asset tracing investigations
now routinely factor in cryptodiscoveries
and attempt to trace their movements across the
globe. In this often murky world, lawyers have had
to develop new tools, ably assisted by the courts, to
pierce the gloom and follow the digital money. The
UK government’s intention to regulate the cryptoindustry
should also be a positive step for consumer
protection, advocating greater transparency, certainty
and improved safeguarding measures.
In summary, the fraud, asset tracing and recovery
landscape has never been busier. In PwC’s Global
Economic Crime and Fraud Survey 2022, 46% of
organisations had experienced fraud in the past 24
months. However, this excluded the tech industry
as two-thirds of the technology, media and telecommunications
companies had experienced fraud. Of
all the companies that experienced fraud, one in four
experienced fraud in relation to the digital platforms
that they use – a significant vulnerability.
The intention of this publication is to provide a
clear and comprehensive overview of the practice
of fraud, asset tracing and recovery litigation in a
number of countries around the world, working
towards global innovation and best practice through
the sharing of knowledge and expertise. We would
like to take this opportunity to thank the tireless
efforts of our contributing authors, who include
some of the world’s leading law firms, a wide range
of expert practitioners, barristers’ chambers and
forensic accountants. Their generous contributions
to this project have established an invaluable holistic
picture of the international legal response to fraud
and asset misappropriation, which we hope will be
useful for our readers both now and for many years
to come.