Following to the verdict of the
In the autumn of 2019, the Norwegian subsidiary of the
Through manipulation of the managing director of the Norwegian company, the fraudsters managed to create a false belief that the payments had to be completed immediately and kept strictly confidential. Over the period of two weeks, the managing director of the Norwegian company was manipulated into making 13 payments from the company's account in
In the spring of 2020, Edison filed a lawsuit against their bank in
The court's assessment
The majority of the
Furthermore, the court's majority also concluded that the Bank's failure to comply with obligations under the Anti-money Laundering Act was relevant when assessing the Bank's negligence. The court's majority found that the information registered when onboarding Edison as a customer was inadequate to fulfil the Bank's obligations under the anti-money laundering regulations. The Bank's follow-up of the transactions was also considered inadequate in light of the Bank's obligations under the Money Laundering Act.
When considering all relevant aspects the majority of the Appeal Court found that
The verdict was rendered with dissent 2-1 and has been appealed.
What is CEO fraud?
CEO fraud is fraud carried out by email, telephone, SMS or similar means by persons impersonating the management of a company or group. Companies headquartered abroad may be particularly vulnerable. By impersonating the management of the company or group, the aim of the fraudsters is to deceive someone in the company or group into transferring money to an account belonging to the fraudsters. The fraudsters are becoming more and more thorough in their preparations and individual attacks are tailored towards specific companies and employees.
What are the characteristics of typical CEO fraud?
Even if the fraudsters succeed in deceiving employees in a position to transfer money on behalf of the company, there are some indicators that typically characterize a CEO fraud.
If such indicators are identified, it may help the company itself and/or the company's bank to detect and prevent the fraud.
Typical indicators of CEO fraud
Originally published by
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Nils Christian Langtvedt
Advokatfirmaet Hjort DA
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