From Legal Futures’ Associate Travelers
Theft, fraud and dishonesty are a risk for all businesses, but law firms are doubly vulnerable. Not only do they often have significant amounts of money in their accounts, they are also at risk of being used to launder money. The first could lead to a claim on your indemnity policy, the second to disciplinary sanctions and criminal proceedings. In order to succeed most fraud must be disguised as legitimate activity. In almost all cases there could be a genuine reason for the actions described and it is your job to distinguish the real from the false activity. Fraud and dishonesty can be divided broadly into two types, that from inside the firm and attacks from someone outside the firm.
Read the Travelers’ guidance note about some of the most common types of fraud to affect firms, and the steps you can take to avoid them.