The Fight Against Online Fraud: UK Insurer Launches New Service to Recover Stolen Funds

In a move to combat the rising threat of online fraud targeting British businesses, a leading insurer has introduced a new service aimed at recovering funds stolen by fraudsters. This innovative service, launched by Coalition, has already proven successful in returning £1.4m ($1.8m) to a policyholder who fell victim to a sophisticated social engineering attack.

The new “clawback” service operates by teaming up with a legal partner to track down and retrieve stolen funds from the British banking system before the attacker can access them. The key to this success lies in the legal partner’s in-depth knowledge and strong relationships within the banking system, allowing for swift and precise action.

Laura Stewart, Coalition’s UK head of claims, emphasized that while success cannot be guaranteed every time, the newly established process significantly improves the chances of recovering stolen funds. In a statement, she highlighted the challenges of navigating the UK banking system and the importance of quick and assertive communication with banks to thwart fraudsters.

Battling BEC and APP Fraud

Business Email Compromise (BEC) scams, which have cost corporate victims billions of dollars globally, remain a prevalent threat. UK banks, along with those in Hong Kong, often serve as intermediary stops for funds in BEC transactions, making it crucial to act swiftly to recover stolen funds.

Authorized Push Payment (APP) fraud poses another significant risk to British businesses, particularly small and medium-sized enterprises (SMEs). UK Finance reports that corporate victims lose an average of £11,000 ($14,400) per scam, with some cases resulting in multi-million pound losses in just minutes.

As the fight against online fraud intensifies, Coalition’s new service stands as a valuable resource for UK businesses seeking to recover stolen funds and protect against financial losses caused by cybercriminals.