COVID-19 and PPE fraud – a Hong Kong perspective

It will come as little surprise that since the start of 2020 there has been unprecedented demand across the globe for Personal Protective Equipment (PPE) – in particular for disposable face masks, gloves and surgical gowns. At the outset of the pandemic, these items were needed to supply and protect front-line health workers. Of late there has been wider demand from the public at large as the pandemic spreads. Unfortunately, opportunists see these events as a chance to cash in and profit from people’s anxieties. 

Are you a victim of CEO fraud? Here's an immediate action plan to recover funds wired to Hong Kong or Mainland China

Many victims of CEO fraud (also known as business email compromise) are companies involved in cross-border businesses that routinely make international money transfers.

The Federal Bureau of Investigation (FBI) reports that:

• most of the victims are based in the US, but companies from over 100 other countries have been defrauded;
• although fraudulent transfers have been sent to over 79 different countries, most of the money is sent to banks in Mainland China and Hong Kong; and
• the first 24 hours after the fraudulent transfer are critical.

From January 2015 to June 2016, the FBI reported a 1,300 percent increase in exposed dollar losses (which refers to actual and attempted loss) due to CEO fraud at approximately USD 3.1 billion. The extent of this problem could be much higher as many of these crimes may go unreported due to embarrassment or despair at the seeming lack of practical solutions.

The following action plans outline steps to freeze accounts and recover funds.