From romance scams to phantom PPE, banks battle coronavirus crimewave

From romance scams to phantom PPE, banks battle coronavirus crimewave Fraud risk analyst Rajendran Raj was used to the odd out-of-hours alert from authorities, but a call one Saturday in March heralded a new era, of tackling criminals seeking to cash in on coronavirus. Sinead Cruise, Lawrence White U.S.

LONDON (Reuters) - Fraud risk analyst Rajendran Raj was used to the odd out-of-hours alert from authorities, but a call one Saturday in March heralded a new era, of tackling criminals seeking to cash in on coronavirus.

A French drugs firm had contacted Singapore police to report the failed delivery of $10 million of Personal Protective Equipment (PPE) from a supplier in the Asian financial hub, just as demand for such supplies was rocketing.

Raj, a 30-year veteran of Standard Chartered, traced the payment to a bank in Singapore and then to seven others. Debit card payments then helped Raj’s team track the alleged perpetrator to Hong Kong, leading to his arrest.

Such pandemic-related scams mean banks are hiring more staff to prevent and detect fraudulent transactions, forging closer ties with local and global law enforcement and launching public awareness campaigns, bankers and their advisors told Reuters.

“Prior to COVID-19 I would say I handled maybe 20 to 30 scam cases per year, but during this period from March to now we have handled several hundred,” Raj said.

BAE Systems Applied Intelligence research suggests U.S. insurance fraud, where scammers seek to dupe insurers on costs incurred as a result of COVID-19 restrictions, has doubled in 2020, so far costing the industry $100 billion. ...