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DATABASE FRAUD: THE INVISIBLE ECONOMIC CRIME
Businesses are now heavily reliant on technology and the information held on their systems. Penetration of these systems and the theft of databases and proprietary information is now one of the fastest growing economic crimes.
UNITED KINGDOM, Leading London law firm Mishcon de Reya have today warned that database fraud is fast reaching epidemic proportions. Businesses are now heavily reliant on technology and the information held on their systems. Penetration of these systems and the theft of databases and proprietary information is now one of the fastest growing economic crimes.
Dan Morrison, a Partner in Mishcon de Reyas Fraud and Brand Protection Group said, This is fast becoming a serious problem for companies of all sizes. The theft of your database can severely damage your business and its reputation and cause significant financial loss. Once a fraud has been detected, you have to be aggressive with these criminals, such as immediate 'freeze and seize of their assets."
In the majority of cases, the crime has been committed by a member or members of staff who are leaving a company and taking this confidential information with them for fraudulent gains. On several occasions new rival businesses have been established using this stolen data, thus causing a potential loss of business for the legitimate owner of the data. It also common for 'hackers to break into a companys systems and steal information, often without the companys knowledge, which can then be sold to competitors or used in other fraudulent ways.
The recovery of stolen information is often by civil means as the police are unlikely to take direct action. The use of asset freezing orders, search and seize orders together with disclosure and gagging orders can have an immediate impact on these criminals. Dan Morrison said, A swift, surgical, pre-emptive attack is the best way to deal a fatal blow to fraudsters."
However, Mishcon de Reya claim that eliminating the opportunities for fraud is the best insurance policy. By creating a commercial and legal framework, which signifies to employees, business partners, customers and suppliers that you will not tolerate fraud can dramatically diminish the temptation.
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Notes to Editor
1. Mishcon de Reya is a dynamic commercial practice based in central London. The firm is a quality law practice that offers leading edge services. The firm has a high profile with a reputation for providing innovative solutions. The firm is often selected by clients facing unusual legal risks to their businesses and reputations. Mishcon de Reyas deep understanding of its clients needs underpins every area of the practice.
2. Dan Morrison joined Mishcon de Reya in 2000 from Freshfields, where he qualified in 1995. Dan is a member of the Fraud and Brand Protection Group at Mishcon de Reya and became a Partner in 2002. Dan advises clients on the tracing and recovery of stolen assets and covert investigative techniques arising out of corporate fraud, both in the UK and off-shore jurisdictions. His clients include a number of blue chip international banks, IT and other commercial organisations.
3. In order to increase awareness of the growing threat of fraud within the business world, Mishcon de Reya will be holding a series of Business Briefings during 2003. The Briefings will be targeted at specific business areas and will advise companies about the threats that they face, the current position with the law and the civil legal action that can be taken to recover assets, costs and compensation. The first Business Briefing, focussing on the recruitment industry, is being held on Tuesday 4th February 2003.
For all press and media enquiries please contact:
Victor Trocki
Trocki Limited
Tel: +44(0)20 7420 1911
Fax: +44(0)20 7240 9934
E-mail: trocki@keescott.co.uk
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