Fraud and risk -Trowers & Hamlins

The true cost of fraud is more than just a number – penalties from regulators and damage to reputation can lead to business disruption, lost trade, lost management time and cost involved in internal investigations and disciplinary procedures. Regulation in some countries also puts the spotlight on senior management, exposing them personally to fines and imprisonment.

Our work includes the preparation and development of counter fraud strategies and data breach response plans, managing internal investigations (often with an international focus), responding to the discovery or suspicion of fraud (across a wide range of sectors and industries) and resolving those disputes . Our expertise also extends to negotiating and advising on investigations instigated by regulators, including the SFO, FCA, ICO and HMRC (together with parallel criminal investigations, including those in other jurisdictions).

The volume at which data is now created and stored has put many organisations at risk; it is the wrongdoing that the data can be used to facilitate which creates this interest and makes the data more valuable and a key business asset. It is, therefore, to be expected that cyber criminals often prefer to target the data that an organisation holds (rather than direct 'cash'). A data breach in itself can have a huge impact on organisations, from regulatory intervention and substantial fines from the ICO, to reputational damage and litigation risk from affected individuals. We regularly advise on cases where a cyber system or process has been infiltrated or compromised, or a data breach has occurred. When an incident is discovered or dishonesty suspected we work with an organisation's internal teams IT and PR teams to manage the flow of communication to the public and preserve evidence. We also work with specialist forensics, cyber security and IT organisations to ensure that: (1) a thorough investigation is undertaken and that steps can be taken to mitigate the risks from the incident (2) steps to mitigate the risk of a similar incident happening in future and (3) if assets have been misappropriated, that swift and decisive action is taken to restrain and recover those assets.

Our team of specialists work with you to prevent and respond to fraud and corruption, and other key business risks. When it comes to recovering losses and minimising damage, the key is to be proactive and not reactive. Our approach to our service includes:

Prevent – providing bespoke advice and plans to minimise the risk of fraud and corruption, and of cybercrime and data related breaches; risk reports and helping develop robust counter fraud strategies.

Investigate – quickly gathering evidence and conducting in depth investigations when issues come to light. This often includes liaising with the regulator of pre, during and post the investigation.

React – when misappropriated assets are suspected, reacting efficiently and decisively, which can mean the difference between recovery and loss.

In brief