Capita Financial slapped with fraud fine
Capita group subsidiary suffers FSA fine for defrauding customers
A subsidiary of Capita Group has been slapped with fine by the Financial
Services Authority after its staff helped to defraud customers.
The fraud took place in 2004 at a Capita subsidiary, Capita Financial
Administrators, which administers customer accounts of unit trust companies.
Police are investigating the loss of £328,000 by 26 customers and how moves were
made to steal a further £1.55m
According to BBC online The FSA fined the subsidiary £300,000 and said the
matter was ‘incredibly serious’. This marks the first occasion that the FSA has
fined a firm for poor anti-fraud controls.
‘The weaknesses in systems and controls contributed to the frauds. CFA did
not ensure that procedures to mitigate fraud risk were adequately implemented
and that fraud awareness straining was appropriate,’ the FSA said.