Fraud & Cyber Crime
Fraud & Cyber Crime
Fraud & Cyber Crime
Fraud & Cyber Crime
According to the FBI, the number of victims of email bank fraud has increased significantly, by about 270%, since January 2015.
This particular cybercrime has various names: “CEO Fraud” – because the fraudster impersonates the company’s CEO, when giving the instructions to make the payment; “fake President scam”; “business email compromise”; “man-in-the-middle scam” and “man-in-the-email” fraud.
Worldwide, over $2.3 billion has been lost to this scam.
The fraud usually operates as follows: the fraudster hacks into victim’s email account system and pretends to be the CEO of the company or an established overseas supplier to the company. Typically, the fraudster will use an email address which is similar to the CEO/supplier’s authentic email address save for the substitution of one character in the email address for a similar or combination of characters (for example, putting “r n” in place of “m” or “l” in place of “i”).
Impersonating the CEO or supplier, the fraudster sends an email to the company’s financial controller instructing him/her to make a payment by wire transfer to an account. The victim duly wires the funds to the nominated recipient account. After the payment is made, the victim discovers that the recipient account is not the account of a genuine supplier or anyone known to the company. Often, the victim will immediately contact its bank, trying to stop the wire transfer from going through, but typically the funds would have already been sent to the fraudster’s account.
Regrettably, monies stolen using business email compromise scams are often traced to Hong Kong. Bank accounts at branches and financial centers in Hong Kong are one of the most common destinations for such stolen funds. Fraudsters frequently incorporate front-companies in Hong Kong, which carry on no genuine business and whose sole purpose is to receive wire transfers from overseas victims.
Reporting & Fund Recovery
Reporting & Legal Assistance
If you are a victim of a business email compromise and you have reason to believe the funds have been sent to Hong Kong, you should immediately make a complaint to the Hong Kong Police, without any delay.
A report can be made by one of two ways:-
- First, a report can be made in person over the counter at a Police Station in Hong Kong. If you are overseas, you can engage our firm to make the report in person at a Police Station in Hong Kong for you. We have done this, for many clients.
- Alternatively, a report can be made online through the Hong Kong Police website. We recommend making the report in person at a Police Station, instead of making the report online. In particular, the Hong Kong Police will usually investigate a report made in person at a Police Station in Hong Kong immediately – which often results in the stolen funds being intercepted and frozen in Hong Kong, enabling the victim to recover the monies. On the other hand, it usually takes the Hong Kong Police several weeks to investigate a report made online and, by that time, the stolen funds have typically been transferred out of Hong Kong, to another country.
Once the recipient bank receives notification from the Hong Kong Police, the recipient bank will usually freeze the stolen funds and keep them frozen for sufficient time to enable the victim to recover the funds through civil proceedings commenced in either the High Court or District Court of Hong Kong.
Importantly, the recipient bank will not keep the funds frozen indefinitely, so it is important for the victim to retain a firm of Hong Kong solicitors to assist in recovery of the funds through proceedings in court.
Payne Velasco has assisted several clients successfully to recover monies stolen via business email compromise scams. In recognition of our work in this area, Payne Velasco was awarded the “Business Law Firm of the Year” by Lawyer Monthly magazine in 2015.
If you need assistance in respect of a business email compromise matter, please contact Gregory Payne at greg.payne@paynevelasco.com
Expert Guidance and Rapid Response to Email and Financial Scams
Protecting Your Business from Fraud & Cyber Crime
Payne Velasco helps businesses prevent, respond to and recover from cybercrime and business email compromise. Our experienced team provides immediate action, strategic advice and legal support to safeguard your funds and minimise losses.
Business Email Compromise Expertise
We specialise in handling CEO fraud, fake President scams, and other email-based cybercrimes to protect your business.
Rapid Incident Response
Immediate action is critical. Our team guides victims to report fraud quickly and maximise the chance of freezing stolen funds.
Hong Kong Legal Recovery
We navigate Hong Kong’s legal and banking systems to recover funds through civil proceedings in High and District Courts.
Trusted Cybercrime Advisors
With proven experience, Payne Velasco provides strategic guidance and representation to mitigate risks and recover lost monies efficiently.
Fraud & Cyber Crime FAQs
Key Questions About Email & Cyber Fraud
Payne Velasco answers common questions on fraud and cybercrime, explaining how scams operate, how to respond quickly and the steps to recover stolen funds efficiently.
What is business email compromise (BEC)?
BEC is a type of cyber fraud where criminals impersonate a company’s CEO, supplier, or partner to trick employees into wiring funds to fraudulent accounts.
How can I prevent falling victim to email fraud?
Use strong email security, verify unusual payment requests by phone, and train staff to recognise phishing and CEO fraud scams.
What should I do if funds have already been sent?
Report the fraud immediately to the Hong Kong Police, preferably in person at a station, and engage experienced solicitors to assist in recovering the funds.
Can stolen funds be recovered?
Yes, with prompt action and legal assistance, banks may freeze the stolen funds, enabling recovery through civil proceedings in Hong Kong courts.
Why is Hong Kong a common target for fraudsters?
Fraudsters often use front companies and bank accounts in Hong Kong to receive international wire transfers due to the region’s financial infrastructure and accessibility.