Dutch Trial Shows Potential of Debt Recovery Expertise in Fraud Cases

A pilot scheme in the Netherlands which saw debt recovery specialists brought in to investigate online fraud cases resulted in half the victims getting at least some of their money back.  

The trial focused on incidents where people had made a purchase online but never received the goods they paid for. Working with Dutch police, two debt collection organisations were asked to step in to track down the scammers and work on recovering funds.

In total, a quarter of the victims ended up getting all their money back, while another quarter received some of their money. In total, 87% of the fraudsters either paid back the money or went on to face police charges.

Rogue Directors Face Disqualification for Dissolving Companies to Avoid Debts

Directors found abusing company closure rules to worm their way out of paying creditors can now be disqualified from holding future positions.

In a welcome crackdown on debt avoidance, the government has extended the powers of the Insolvency Service so it can now investigate voluntary dissolution of companies. If directors are found to have shut down their business with the primary motive of wiping off debts, the Insolvency Service can now bring misconduct charges against them.

As well as being disqualified for up to 15 years, directors could be ordered to pay compensation to unpaid creditors.

What’s in a Company Name? More Than You Might Have Bargained For…

When it comes to flexing its censorious muscles over what you can and cannot register as a company name in the UK, it appears that Companies House may have fallen behind the times.

The executive agency in charge of incorporating and dissolving registered commercial entities has long been known as a bastion of decorum and decency. Every year, the government body rejects a few dozen applications to set up companies on the grounds that the requested names are potentially offensive.

Deep Fake: The Next Frontier in Cyber Scams

One of the most notorious incidents of cyber crime to date also stands out for the bare-faced cheek and simplicity of the methods employed. When criminals targeted Austrian aerospace firm FACC, they didn’t bother trying to hack into the company’s IT systems, bring down firewalls with a DDoS attack, or plant malware on its servers to quietly mine sensitive data.

Instead, they simply impersonated CEO Walter Stephan, sending a fake email in his name authorising a junior member of the accounts teams to send $47m to what the email claimed was the bank account of a company Mr Stephan was negotiating to buy. It wasn’t, and the thieves made off with the biggest single haul in cybercrime history.

In our line of work, we come across some colourful characters to say the very least. We all know the stereotypes about the shady circles debt collectors have to move in. Well, while we’re not always keen on the cliches, the truth is in the course of recovering debts, we do have to deal with a motley assortment of fraudsters, conmen, chancers and career criminals, all often operating under the guise of supposedly legitimate business interests.

What we certainly never do is feel any ill will towards anyone we attempt to collect money from. At the end of the day, it is a professional service we provide, to look after the interests of the small business owners, freelancers and contractors who come to us, often at their wits end, to try to get back money that is rightfully theirs. But whoever it is that owes the money, and whatever their reasons for not paying their debts, they are still people.

County Court Judgments Against Businesses Soar in First Quarter of 2019

The number of County Court Judgments (CCJs) against businesses in England and Wales shot up by 12% in the first quarter of 2019, according to official figures from the Registry Trust.

A total of 35,779 CCJs were issued in the first three months of the year with a combined value of £107.2 million - a year-on-year increase of 6% from the same period in 2018. The figures show that judgments have gone up against both incorporated and non-incorporated businesses, part of a longer term trend which has seen the net value and frequency of CCJs increase.

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