- The City of London Police has partnered with international law firm Gowling WLG to assist fraud victims in recovering stolen assets
- This collaboration follows a successful pilot aiding an elderly Alzheimer’s patient who lost over £2 million in a cryptocurrency scam
- The initiative offers civil asset recovery options when criminal prosecution is not feasible, aiming to retrieve victims’ losses and target organized crime assets
City of London Police has teamed up with Gowling WLG to help fraud victims reclaim stolen assets, especially in cases where prosecution isn’t viable, following a successful trial. The pilot program successfully recovered over £2 million ($2.5 million) for an elderly Alzheimer’s patient defrauded in a cryptocurrency scam. The initiative not only seeks to return losses to victims but also enables civil asset recovery agents to pursue assets held by organized crime groups.
Crypto Scams on the Rise
Cryptocurrency scams have become increasingly prevalent in the United Kingdom in recent years, posing significant financial risks to investors and prompting action from financial institutions and regulatory bodies. In 2023, Lloyds Banking Group reported a 23% increase in cryptocurrency investment scams compared to the previous year, with victims losing an average of £10,741 ($13,600), with two-thirds of these scams originating from social media platforms like Facebook and Instagram. This number has only increased in the years since.
In response to this troubling rise, City of London Police recently initiated a collaboration with international law firm Gowling WLG, aimed at providing civil asset recovery solutions for select fraud cases where traditional prosecution may not be possible or effective.
The collaboration was prompted by a pilot project that addressed a particularly distressing case where an elderly victim suffering from Alzheimer’s disease was defrauded of more than £2 million through a cryptocurrency scam. The successful recovery of these funds highlighted the potential of civil asset recovery in providing justice to victims who might otherwise have limited recourse.
Partnership Hopes to Reduce Financial Burden
In a City of London Police press release, Gowling WLG director Bríd Holden emphasized the broader impact of this initiative:
After a successful pilot, we are pleased to be working on this initiative with City of London Police to investigate and support victims to recoup monies lost to such frauds. We are hoping that working in collaboration with City of London Police will change the landscape and encourage more victims to report fraud, raising awareness generally, but also our aim is that this partnership will recover monies for victims of such frauds.
Detective Chief Inspector Craig Mullish of the City of London Police underscored the importance of asset recovery in the aftermath of fraud:
“As a victim of fraud, you can feel helpless and that you have to shoulder the often heavy financial burden of losing money at the hands of criminals … This trial with Gowling WLG is a positive initiative, which we hope will provide a clear process for victims in helping them take back what is owed to them.
By integrating legal expertise with law enforcement capabilities, this partnership aims to create a more effective framework for tackling the complexities of cryptocurrency fraud. It represents a proactive step towards not only addressing individual cases but also deterring organized crime groups that exploit digital currencies for illicit gains.
