Financial regulation consultancy, Bovill, has warned the coronavirus could lead to a surge in cybercrime and financial fraud in the UK.

Bovill noted that regulators in Asia and the US are currently warning consumers of the risks of cybercrime while offering guidance on how to mitigate for them – but suggested there had been ‘limited’ advice and information from the UK agencies.

Last month, the Monetary Authority of Singapore (MAS) sent a warning to consumers about a large number of fraudsters impersonating MAS or bank staff, looking to take advantage of the panic and confusion surrounding the coronavirus outbreak to obtain personal banking details.

In the US, the Securities and Exchange Commission (SEC) has warned that scammers are taking advantage of the outbreak to carry out investment frauds, and Bovill highlighted there had been several internet promotions, including on social media, claiming that certain products or services of publicly listed companies could prevent or cure coronavirus. As a result, the stock prices of these companies have increased dramatically in value.

The only public communication regarding coronavirus from the FCA in the UK, Bovill also stated, has been a statement last week to say the regulator was ‘actively reviewing the contingency plans of a wide range of firms’ – though there has been no specific warning or advice from the FCA regarding cybersecurity.

Bovill partner, Ed O’Bree, commented: “While there has been substantial advice from overseas regulators on coronavirus related cybercrimes, we have not yet seen anything from the FCA

“It is surprising that the UK regulators are not warning consumers to be vigilant about financial scams linked to coronavirus, given the huge scope for fraud and scams thrown up by public anxiety about the pandemic.

“As the world becomes ever more interconnected, the challenges to firm’s operations will become increasingly far-reaching and hard to predict. Coronavirus is an example of this. Firms should not only address their present operational resilience but their preparedness for any issues that threaten the longevity of their firm.”

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