This eLearning course provides comprehensive fraud awareness training specifically designed for the financial services sector. Fraud represents a particularly significant risk in financial services, where the large volumes of transactions, the complexity of financial products, and the access to client funds create opportunities for both internal and external fraud. The FCA expects firms to have robust systems and controls to prevent, detect, and report fraud.
The course begins by examining the types of fraud most prevalent in financial services, including internal fraud by employees (such as theft of client funds, unauthorised trading, and expense fraud), external fraud against the firm (such as identity fraud, application fraud, and cyber-enabled fraud), and fraud against clients (such as investment scams and mis-selling). It covers the Fraud Act 2006 and its three offences, with examples tailored to financial services scenarios.
The training addresses the specific red flags and warning signs that are relevant in a financial services context, including unusual trading patterns, unexplained account activity, client complaints about unauthorised transactions, and employees living beyond their means. It explains the FCA's expectations around fraud risk management, including the requirement for firms to assess their fraud risks, implement proportionate controls, and maintain effective monitoring systems.
The course covers the practical steps that individuals and firms must take when fraud is suspected, including the reporting requirements, the preservation of evidence, and the regulatory notification obligations. It also addresses the FCA's expectations around fraud reporting under the Principle 11 obligation to notify the FCA of material developments. Upon completion, learners will understand the fraud risks in financial services and be equipped to play their part in prevention and detection.
