Gary Meggitt on Marine insurance fraud and emerging technology (New book chapter)

"Marine insurance fraud and emerging technology"
Gary Meggitt
in Research Handbook on Marine Insurance Law, edited by Özlem Gürses (Edward Elgar Publishing, March 2024), Chapter 14, pp. 275 - 305
Published online: March 2024

Abstract: Marine insurance fraud is probably as old as marine insurance itself. Year after year, the courts hand out judgments- for or against insurers- following lengthy, complex and costly litigation. The losses to innocent shipping companies, cargo owners, agents, brokers, insurers and others, however, go on. Might technology succeed in defeating- or at least deterring- fraud where the ‘law’ has failed? This chapter looks at the use of emerging technology, including smart contracts and artificial intelligence (AI), by insurers and the marine transport industry to combat those who perpetrate marine insurance fraud. It considers how such technology may have resolved some of the more controversial fraud litigation of recent years and how the relationship between this technology and the law may develop in the future.

Jeremy Lam (LLB 2020) on Constructive Trusts and Email Frauds (Trusts & Trustees)

"Constructive trusts and email frauds"
Jeremy Lam (LLB 2020)

Trusts & Trustees 
Published in November 2020

Abstract: Discusses, with reference to the conflicting decisions in Hong Kong including TOKIĆ D.O.O. v Hongkong Shui Fat Trading Ltd and Wismettac Asian Foods Inc v United Top Properties Ltd, the nature of constructive trust in email fraud cases.

Yun Zhao et al on Identity Construction of Suspects in Telecom and Internet Fraud (Social Semiotics)

"Identity construction of suspects in telecom and internet fraud discourse: from a sociosemiotic perspective"
Ning Ye, Le Cheng & Yun Zhao
Social Semiotics
Published online: 25 Mar 2019

Abstract: As a new kind of contactless crime, the telecom and internet fraud has become a public hazard, with criminals targeting massive numbers of innocent victims. It is a prominent criminal problem that currently affects social stability and the sense of security of the public. Since the six Ministries and Commissions jointly cracked down the crime in 2016, the number of cases and the number of people deceived have decreased, but the occurrence and frequency has still been at a high rate, and the situation is deteriorating. Regardless of the scientific and technological means used by fraudsters, the main medium is language. From a sociosemiotic perspective, this study identifies that the criminal suspects use the discourse resources to fabricate false information and construct false identities through discursive practice, with the aim of achieving the communicative purpose of obtaining victims’ trust, tricking, deceiving and manipulating their victims into giving out confidential information and funds. This study, taking telecom fraud discourse as one type of genre, examines the dynamic process of selecting and constructing identities by manipulating related discourse resources and strategies in the social-cultural context. This study further provides a sociosemiotic solution to telecom fraud prevention.

Wan, Chen, Xia & Goo on "Managing the Risks of Corporate Fraud: The Evidence from Hong Kong and Singapore" (HKLJ)

"Managing the Risks of Corporate Fraud: The Evidence from Hong Kong and Singapore" 
Wai Yee Wan, Christopher Chen, Chongwu Xia and Say H Goo
Hong Kong Law Journal
2018, Vol. 48, Part 1, pp. 125-166

Abstract: Since the Asian financial crisis of 1997, Hong Kong and Singapore have implemented reforms that promote independence and monitoring competency of the boards of directors of their listed companies. However, with the advent of the financial crisis of 2007/2008, a wave of fraud cases prompted the question as to the effectiveness of these reforms. Analysing a sample of 62 listed companies which were found to have committed fraud between 2007 and 2014 and comparing them against a matched sample of non-fraud companies, we found that fraud companies tend to combine the roles of chairman and chief executive officer (or they are close family members) and have fewer non-accounting finance experts on their boards. They were also likely to be overseas Chinese firms. Analysing the specific case studies of fraud, the reasons for the lack of effectiveness in the independent directors in preventing fraud are likely due to the difficulties in obtaining access to information in approving conflicted transactions, low threat of enforcement actions, their incentives to side with controlling shareholders and the challenges in regulating foreign listings.

John Lowry on the 'Convoluted and Confused' State of Insurance Fraud Law (LQR)

"Insurance Fraud: the 'Convoluted and Confused' State of the Law"
John Lowry and Philip Rawlings
Law Quarterly Review
2015, Vol. 131 (November)

Abstract: The piece examines from a critical standpoint the approach of insurance contract law to fraudulent claims, with particular reference to fraudulent devices. In English and HK law the remedy is forfeiture of the whole (including any legitimate aspects) of the claim, a form of 'penal non-damages'. The article contrasts the insurance law position with other civil law remedies, for example grossly exaggerated personal injury claims. It also assesses, inter alia, whether the civil courts are an appropriate vehicle for punishing such behaviour.  Will soon be available on Westlaw.  Contact the authors for a copy.