It is hardly surprising that financial services attract fraudsters. From old fashioned bank heists to the criminal exploitation of emerging technologies, it can sometimes feel as though we are fighting a losing battle. I do not agree. While we rely ever more on digital systems and AI-driven processes, we are also developing increasingly sophisticated tools to fight back. As we look forward to the new year, I am confident that progress is being made, albeit step by step. 

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Fraud is ultimately predictable and preventable. Success relies on the effective use of technology, robust regulation, well-trained staff and a culture where vigilance balances convenience with security.

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Financial services are an obvious target. As a Trust and Corporate Services Provider (TCSP), Acquarius faces the same risks as banks, insurance companies, investment firms and indeed any business charged with safeguarding other people’s money or sensitive data. The 24/7 nature of funds flows and information exchange means that organisations must be smarter than ever, either to prevent fraud where possible or where it does occur, ensuring swift detection and remediation. 

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The festive season brings heightened risk. Increased consumer spending, a surge in online transactions, and greater emotional and time pressures all create ideal conditions for fraudsters. At the same time, vigilance may dip, making both individuals and institutions more vulnerable. Fraud prevention is therefore especially critical at this time of year.

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The global scale of fraud is staggering, although difficult to quantify precisely due to differing definitions across jurisdictions. As one example, figures from UK Finance show that close to £630 million was lost to fraud in the UK during the first half of 2025 alone. That figure does not account for attempted fraud that was successfully prevented, making the overall picture even more sobering.

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Businesses of all sizes are affected. During the Christmas period, offices typically operate below full capacity due to staff leave. Fraudsters are aware of this and may attempt to exploit it by pushing for payment of “urgent” invoices. With year end pressures looming, an inexperienced staff member may feel compelled to “let something through” for fear of repercussions if they did not do so. Having faced this situation myself earlier in my career, I regard this as one of the most insidious forms of fraud. Staff must be trained not only to spot such attempts, but also to feel confident reporting concerns without fear of criticism. 

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Other types of fraud, though not seasonal, are equally damaging. Attempts to circumvent or abuse bankruptcy or succession laws, for example, may involve fraudulent conveyance, where assets are transferred to another party to hide them from creditors or fraudulent preference, where a company or individual unfairly pays one creditor before others. There are other examples of fraudulent practice and it is by no means a new phenomenon. 

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So, what can be done? Fraud prevention is a business-critical issue. As a regulated and licensed TCSP, Acquarius must remain alert to these risks every working day. While fraud attempts may not be frequent, constant vigilance is essential. 

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Solid regulation is one of the most effective tools in combatting fraud. Locally, financial services firms, including Acquarius, are regulated by the Gibraltar Financial Services Commission. Robust “onboarding” and ongoing client monitoring requirements ensure firms truly understand their clients, their businesses and expected transaction patterns. This makes unusual requests and suspicious activity far easier to identify. 

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Cyber security also plays a vital role. Acquarius works closely with IASME, a UK-based organisation providing a framework to help SMEs improve cyber resilience. We have attained Cyber Assurance Level 1, along with Cyber Essentials (CE) and CE+ certification. These annually renewable standards align with UK Government requirements and focus on preventing the most common cyber security threats. Further details on our work with IASME may be found here.

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To misquote a familiar phrase, fraud prevention is not just for Christmas – it matters all year round. That said, the festive period presents heightened risks. Through careful monitoring, effective controls and a strong culture of awareness, those risks can be significantly reduced. By combining technological innovation, staff training, client education and regulatory cooperation, financial institutions can limit fraud-related harm. 

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Contact me to learn more about how Acquarius places fraud prevention at the heart its operations. I would be delighted to continue the conversation. Fraud – and the importance of preventing it – affects us all. 

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