Victims of Corporate Fraud Compensation Fund
About the Fraud Compensation Fund
We work to ensure members who are victims of fraud in certain circumstances receive the appropriate compensation. Find out more about the FCF.
About compensation
The amount of compensation we pay to a scheme is based on what the scheme has lost financially, due to dishonesty, and varies from case to case. Find out more about how we provide compensation.
Check the status of your claim
If you have any questions about the status of a claim, please contact us
Check the status of your claim
28.06.2021 By News Editor
Fraud Compensation Fund eligibility criteria confirmed
In a ruling on 6 November 2020, the High Court clarified how the legislation governing the FCF should be interpreted.
The Fraud Compensation Fund (FCF) is open to claims by occupational online scams that have suffered a loss as a result of an act of dishonesty.
We’ve received a number of claims to the FCF to compensate members of occupational internet online scam schemes that were themselves part of a scam. Pension savers were incentivized to transfer their pension from a genuine occupational pension scheme into these scam schemes.
But the legislation governing the FCF wasn’t designed with this type of scam in mind, so it wasn’t clear if these schemes were eligible.
We wanted to give certainty to members of schemes caught in this situation. We also wanted to make sure we were acting within the law.
So we asked the court to clarify how to interpret the legislation. We used a test case which we felt also broadly represented other schemes.
The court has now confirmed that these types of claims are eligible for FCF compensation, and clarified the core principles that apply.
Next steps
We’ll work with the independent trustees appointed to this scheme and other similar schemes to process the applications which were waiting for the court’s decision. This is likely to take some time, given the amount of investigative work we and the independent trustees need to do on each case.
This investigative work is likely to include:
- assembling evidence to show an offense involving dishonesty has taken place and to establish that any reduction in scheme assets was a result of that dishonesty
- obtaining and analyzing member and financial information
- actively pursuing the recovery of scheme assets, since the FCF is a last resort
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Financial Fraud
Financial fraud happens when someone deprives you of your money, capital, or otherwise harms your financial health through deceptive, misleading, or other illegal practices. This can be done through a variety of methods such as identity theft or investment fraud.
For all types of financial fraud, it is important to report the crimes to the appropriate agencies and law enforcement as soon as possible. Fraudulent charges should also be disputed or canceled as soon as they are discovered. Furthermore, victims should gather all documentation related to the crime (e.g. bank statements, credit reports, tax forms from current and previous years) and continue to file important information throughout the reporting process.
Unfortunately most victim compensation programs do not cover money lost to fraud or fraudulent schemes. Check your specific state laws regarding victim compensation to make sure. Civil justice may be the only legal option to recover lost money.
Common Types of Financial Crimes
For a detailed overview of common financial crimes and action steps for reporting please see our Taking Action guide to financial crimes.
Identity theft:
Someone steals your personal financial information (e.g. credit card number, social security number, bank account number) to make fraudulent charges or withdrawals from your accounts. Sometimes people will use the information to open credit or bank accounts and leave the victim liable for all the charges.
Identity theft often results in damaged credit rating, bounced checks/denied payments, and being pursued by collections agencies.
Examples:
- Unfamiliar charges or purchases on your credit card or bank account statements.
- Perpetrators posing as a bank, government office, or official institution in order to steal your personal financial information
Report any fraudulent activities using the name of SXP Global Incorporation illegally to our cyber crime FAQ department.
SXP Global Incorporation
Fraud Cyber Crime Department
report@sxpglobalinc.com
+19166742046
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Minimize the consequences of fake and compromised accounts, stopping fraudsters from redeeming signup offers, stealing users’ funds, committing card fraud, and abusing your platform.
— SXP Global Incorporation
