Financial crime covers a wide range of criminal offences including fraud, money laundering, bribery and corruption, terrorist financing, tax evasion and market abuse and insider dealing. The primary motivation for such crime is to make money.
A conservative estimate of the cost of serious and organised financial crime to the UK is £24 billion a year ; the effect of which is felt by individuals, companies, organisations and even nations due to the considerable loss involved.
Financial crime is not victimless; it impacts everyone with an increase in policy premiums and can be particularly damaging to the confidence of our more vulnerable customers in their ability to manage their financial affairs.
Everyone is a potential victim; financial crime awareness is key to your protection.
Read more about how you can avoid becoming a victim of a financial crime by spotting the signs.
Vishing is another way for fraudsters to commit financial crime - by using the phone to get private, personal and financial information from unsuspecting people.
Vishers make cold calls during which they ask for personal information within what seems like a normal conversation. You may, for example, have had calls asking about accidents or injuries (which you may or may not have had), offering compensation. Or they may impersonate LV= and ask you to reveal details you’ve already given us. These calls are primarily made by marketing firms or claims management companies who make contact with many people – without knowing if you’ve been in an accident or not. Vishing is not restricted to the insurance industry, callers impersonate many financial institutions, the Police and other trusted companies.
This is the generic term for a crime by which criminals disguise large amounts of money, usually obtained from serious crimes, such as drug trafficking or terrorist activity, and create the appearance that the money originally came from a legitimate source.
There are three main stages to money laundering - placement, layering and integration.
1. Placement - This is when the illegal money is introduced into the financial system
2. Layering - This is the movement stage, where the money separated from it's source and disguised
3. Integration - Money is returned to the criminal from what looks like a legitimate source
In short, terrorist finance provides funds for terrorist activity. The funds could come from legitimate sources such as personal donations and profits from charitable companies, or the funds could come from criminal sources such as the drug trade, fraud or kidnapping.
Financial transactions associated with terrorist financing tend to be in smaller amounts than they are for money laundering, so they can be harder to track.
At LV= we work hard to prevent financial crimes to help keep your premiums as low as possible.
We also employ teams of specialists, with many years of crime fighting experience, to investigate any suspicions of financial crime and report our findings to the police and other law enforcement agencies.
We work with many organisations to support this: