It is with great pleasure that we welcome you to the fourth edition of CDR Essential Intelligence: Fraud, Asset Tracing & Recovery. Peters & Peters Solicitors LLP has been delighted to serve again as the Contributing Editor to this comprehensive guide on the practice of global litigation in this critical sphere of work. The past 12 months have been difficult to quantify as both a return to normality and the theme of change dominated. In much of Europe, the UK and North America, COVID-19 and the dreaded lockdown have become a distant memory. We have moved on to new issues: the war in Ukraine; high energy prices; and the resultant cost-of-living crisis, to name a few. In Asia, however, we are only now seeing the abandonment of China's zero-COVID strategy and you, our dear reader, will probably know more than us about the results of this drastic policy change. COVID-19 had provided numerous opportunities for the fraudster with contracts fast-tracked by government departments, and generous loans offered with minimal oversight. A return to some normality has led to an uptick in investigations and litigation as governments and banks attempt to recoup their losses. As we all sat in lockdown the real beneficiaries were the technology companies that kept us connected with friends, family, colleagues and our finances. The digital communications sector has provided lucrative opportunities for fraudsters and the sophistication of attacks h as i ncreased. C ybersecurity h as b ecome our watchword as we observe the high numbers of ransomware a ttacks. G lobal c yberattacks i ncreased by 38% in 2022; however, the UK saw an increase of 77% and the US 57%. These sobering statistics also highlight that the areas most affected by attacks were government, healthcare and education/research. Cybercriminals have been on the march since COVID and are reaping the benefits of remote working by attacking business collaboration tools. They have also focused on areas which are data heavy, and can offer stark, real-world consequences from technology on the attack, such as in hospitals. The growth in digital finance offerings, the lack of regulation and the attraction of cryptocurrencies also ensnared many as they isolated. Indeed, since our last edition, cryptocurrencies have provided a neverending flow of fraud allegations, financial collapses and bankruptcies. The collapse of cryptocurrencies, as well as their fluctuating value, have sent shockwaves through the markets and highlighted the risks for the most honest investors, whether gullible, overt, optimistic or simply unlucky. Asset tracing investigations now routinely factor in cryptodiscoveries and attempt to trace their movements across the globe. In this often murky world, lawyers have had to develop new tools, ably assisted by the courts, to pierce the gloom and follow the digital money. The UK government's intention to regulate the cryptoindustry should also be a positive step for consumer protection, advocating greater transparency, certainty and improved safeguarding measures. In summary, the fraud, asset tracing and recovery landscape has never been busier. In PwC's Global Economic Crime and Fraud Survey 2022, 46% of organisations had experienced fraud in the past 24 months. However, this excluded the tech industry as two-thirds of the technology, media and telecommunications companies had experienced fraud. Of all the companies that experienced fraud, one in four experienced fraud in relation to the digital platforms that they use - a significant vulnerability. The intention of this publication is to provide a clear and comprehensive overview of the practice of fraud, asset tracing and recovery litigation in a number of countries around the world, working towards global innovation and best practice through the sharing of knowledge and expertise. We would like to take this opportunity to thank the tireless efforts of our contributing authors, who include some of the world's leading law firms, a wide range of expert practitioners, barristers' chambers and forensic accountants. Their generous contributions to this project have established an invaluable holistic picture of the international legal response to fraud and asset misappropriation, which we hope will be useful for our readers both now and for many years to come.
