A new method used by cybercriminals to carry out funds transfer fraud is through the electronic manipulation of documents.
For example, one claim involved a plastics manufacturer whose computer systems were hacked. This allowed the fraudsters to access the invoice payment templates that were sent out to their customers.
The fraudsters changed the bank details on the form so that when they were issued to customers, the payment simply went to the fraudsters' account rather than the client's. Some £140,000 was transferred to the fraudsters before the client realised what had happened.
19Sep
The need for employers to get covered up
Written on .
As we have reported previously, employment claims continue to increase apace. 2017 gave us a 90% increase in ACAS notifications and this year looks to be a further 25% on that figure.
We think this means that currently there are now around 4 new ACAS notifications every hour and our larger clients face roughly a 1 in 15 chance of facing a Tribunal each year.
We continue to see an increase in vexatious claims, often professionally supported and with a wide range of spurious extra complaints and a Data Access request - all of which is designed to increase the perceived complexity, length and cost of the Tribunal.
Faced with an expensive longer hearing, many insurers will look for a deal to settle, so it’s game set and match to the unjustified.
No insurer likes an expensive pyric victory. In a recent example a claimant alleged that a delay in agreeing to an early retirement application was due to disability discrimination. It was not, it was simply a poor process that was badly administered but it took a full ET, an Appeal and finally a Court of Appeal decision to lay the claim to rest. With legal costs in the region of £70,000 any business without adequate insurance would find this a hard cost to bear.
Our average insured claim cost is now £8000, enough to dent the annual dividends of most smaller companies and we have met several claims over £50,000 already this year.
Best advice for SME’s is to completely ‘outsource the employment risk’ – offer them an integrated advice and insurance retainer costing as little as a £150 per month from your favourite local HR provider.
19Sep
Cyber attacks - are you prepared?
Written on .
We are not looking to sell you cover (not yet, we are still developing our product) but there is a clear and present danger, not least because of digital crime factories focused on attacking Western business infrastructure.
Most current business insurance policies were designed decades before the Internet or electronic trading. Way before many “data assets” even existed.
In this short piece we are simply alerting you to the gaps you may have in your risk management programme.
As market leader in legal expenses insurance for law firms we are proud to claim we were the first in many areas: FIRST – Price promise – never beaten like for like FIRST – Policy wording to respond to ACAS pre-conciliation FIRST – Policy without a "prospects of success" catch-out clause FIRST – Policy to provide representation for GDPR claims FIRST – to allow solicitors flexible choice of claims handling rates
No joining fee, free marketing assistance, no exclusivity requirement and probably the widest standard policy wording.
We understand employment solicitors and we understand the wider business community.
In fact we have an alignment of interest in helping you to win business retainers and keep them!
08Aug
The boot is on the other foot
Written on .
ACAS is now reporting 2500 new claims every month and it’s clear that employers are on a financial retreat from a barrage of unwanted extra costs.
In context, we saw a 90% increase in the first full year after ET fees were ruled illegal. This year the numbers are up again, a further 25% every month.
That’s a new claim every 17 minutes of a working week.
