Online Fraud & Cyber Crime | A Review for 2025
Society’s reliance on computers and online technology impacts every aspect of modern life and has led to the levels of online fraud and cybercrime being conducted grow to a scale beyond comprehension, running into billions and billions of pounds each year.
This trend is only going to increase with experts concerned that the tactics employed to conduct fraud will become even more sophisticated with the development AI.
Every possible angle for the implementation of fraud is pursued. For example, the deviousness of scammers associated with cryptocurrency theft is illustrated by those who pretend to offer cryptocurrency recovery services, intended to assist scam victims recover money lost through crypto fraud.
Often through social media or online advertisements, scammers offer their recovery services upon payment of substantial ‘up front’ agency fees. Once the fees have been received, the scammers simply disappear. Effectively, the scammers are ‘re-scamming’ those who have already suffered as the result of fraud.
Constant vigilance is necessary to become aware of new scams endlessly being introduced. In December 2024 ‘WHICH’ Magazine focused on some Christmas and New Year’s Eve scams including:
- a ticket scam warning from the Mayor of London in respect of tickets for London’s New Year’s Eve fireworks event,
- a false ‘WhatsApp’ message from Aldi claiming to offer free Christmas gift cards. The message contains a malicious phishing link leading to a website designed steal personal and financial information,
- People’s Postcode Lottery is being impersonated promoting the chance to win a ‘scratch card advent calendar’ in exchange for ‘a few quick questions’ which lead to a malicious website.
- HMRC scam text requiring a ‘response call’ to resolve a debt ‘of £3,436.22 to avoid ‘being summoned’ [sic]. The number provided leads to a scammer seeking personal information.
Other scams explained include:
- Cadbury Christmas Giveaway
- Apple ID Access,
- Seasalt Cornwall,
- TalkTalk verification,
- Fake Jo Malone London Advent Calendar.
Anyone who believes they have been the victim of online/cyber fraud or other ‘scamming fraud’ and have lost money, cryptocurrency or any other form of asset, should inform their bank and the police immediately.
Nazaqat Maqsoom of KANGS outlines the nature of some typical online investment and personal lifestyle frauds, the manner in which they are conducted and the possible recovery action which may be taken.
Examples of Online Fraud
The sole intent of the scammers/fraudsters is to fool you and steal your money, for example, using fake websites or text messages that appear to be from a legitimate source. They will target anything they can access including pensions, investments and insurances.
Investment scams
Crypto investment scams
Scammers operate in a variety of ways frequently trading through professional looking websites, manipulating software to offer fake prices and investment returns. Frequently, once the investment money has been received, the scammers will simply take the money and close the receiving account.
Most crypto-related activities are not regulated in the UK which means that there will be no redress to the Financial Ombudsman Service or the Financial Services Compensation Scheme.
Boiler room fraud
Scammers cold call investors offering worthless, overpriced or non-existent shares or bonds. High pressure sales tactics are employed offering a huge financial return which may only be available for a short period of time, thereby imposing pressure to reach a decision quickly. Such is the extent and profitability of this form of fraud that sales techniques frequently include the presentation of an expensive glossy brochure or a free gift.
Land banking
Investors are induced to pay for land upon the premise that the value will increase substantially once planning permission for development has been granted. In fraudulent activity, the scammer will know that planning permission will never be granted or that the land is subject to some restriction preventing development.
Pension fraud
Those aged over fifty-five are entitled to access their pension savings and use them as they choose. This provides a golden opportunity for scammers to seek to steal these funds. They seek to achieve this by persuading their victims to cash out existing legitimate pension arrangements and place the funds into fraudulent unregulated investments.
Sadly, the offer of much higher investment returns traps many into falling for such scams and losing a substantial part if not all of their money.
Other commodities frequently involved in investment scams include:
- rare metals,
- diamonds/gemstones
- rare wine,
- carbon credits and alternative energy technology.
Tracing and Recovery of Stolen Assets
Cyber fraud covers an enormous range of fraudulent activity causing loss at both individual and corporate levels.
The appropriate method to adopt in the pursuit of recovery will vary according to a number of factors including the nature of the fraud which has been perpetuated, the extent of the loss and whether or not more than one jurisdiction is involved.
Tracing hard currency through traditional bank accounts is a comparatively easy exercise whilst theft of cryptoassets, whilst traceable through the blockchain, will almost certainly be hindered by difficulty in identifying people and places.
Although perpetrators of any fraud may be brought to justice through the Criminal Courts, the main priority of victims is normally the recovery of their stolen property. This will necessitate action through the Civil Courts which are becoming increasingly accustomed to managing such claims.
Proceedings may be pursued through both the Civil and Criminal Courts although careful consideration is required to establish the correct timing and procedures.
Whilst the giving of Notice of Fraud to all Banks involved may result in the affected accounts being frozen, Banks have no duty to disclose details of account holders to the victims until they have been served with a Disclosure Order or a Freezing Order.
Amongst the steps which will need to be considered are:
- seeking a Disclosure Order under the Norwich Pharmacal and Bankers Trust jurisdictions, to obtain relevant detail of the movement of the funds,
- obtaining a Freezing Order which will temporarily stop the transfer of assets. The Order must identify the frozen assets, including bank accounts, property or other assets. Whilst Freezing Orders are temporary in time, they may be extended or lifted,
- Search and Seizure Orders allow law enforcement officials to seize such items as computers or other devices that could potentially contain stolen or otherwise illicit information,
- Computer Imaging Orders - these enable authorities to create exact copies of the data contained on seized devices,
- Passport Delivery Orders - prevent people travelling abroad whilst investigations are being conducted,
- Gagging Orders preventing the circumstances from being discussed.
- Reporting the matter to the Financial Ombudsman.
- Commencing civil proceedings for damages arising from negligence against banks, other financial institutions or any other body which may have facilitated the loss.
How Can We Assist?
It is widely known that the nature of financial fraud commonly known as ‘scamming,’ ‘online fraud’ or ‘cybercrime’ is constantly developing at an uncontrollable rate. To combat the issue of fraud and scams, the Government, along with various legal enforcement agencies and the Courts are all determined to develop the powers and processes to reduce levels of crime, to recover stolen assets as effectively and quickly as possible and to punish the offenders.
The enormous volume of crime committed by criminals based abroad only exacerbates the serious problems to be tackled.
The team at KANGS keeps abreast of all developments in the world of ‘cybercrime’ enabling us to advise and guide clients whatever the nature of their involvement. Whether they have suffered financial loss or have been accused of alleged criminal activity.
Our team is accustomed to investigating the cause of financial loss, pursuing and recovering assets of every nature. This includes tracing missing cryptocurrency through specialised software and handling whatever court proceedings are relevant in both civil and criminal courts.
If we can be of assistance, our team would be delighted to hear from you.
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through live conferencing or telephone.
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