Email Fraud Recovery Hong Kong: How to Get Back Your Money
- Stefan Schmierer
- May 2, 2020
- 3 min read
Updated: 1 day ago
Author: Stefan Schmierer, Managing Partner
The email, that blessing and curse of modern life, has given rise in recent years to multiple criminal activities. An example of this is when an unscrupulous individual hacks into a person’s or company’s email account and intercepts correspondence in which directions are given for the transfer of money, for example for payment of goods.
1. The Legal Remedy to Identity Theft
The hacker masquerades as the intended recipient of the money and emails the payee that for some spurious reason payment should now be made to a different bank account. This account is usually in the name of a company and is very often located in Hong Kong and controlled by the hacker.
The unsuspecting payer, unaware that his correspondence has been hacked and believing the email genuinely came from the intended recipient, proceeds to make the payment. He later discovers that the rightful recipient knows nothing about the account and has not received the money.
2. Freezing the Fraudulent Account
In such circumstances, the first practical step is to freeze the account into which the monies have been deposited. This can be done:
By application to the court, or
Through the police.
However, it is important to note that the bank where the account is located will not release the money without a court order.
3. Obtaining the Court Order
The innocent party should commence proceedings against the holder of the Hong Kong bank account for return of the funds. Proceedings may be served at the company’s registered address.
If the proceedings are not defended, it may be possible to obtain a default judgment after the period for filing a defence expires. Increasingly, however, defendants rely on a defence known as “change of position”, arguing that they were innocent recipients who no longer retain the funds.
In such cases, litigation must continue. At the discovery stage, where parties must produce all relevant documents, it is often possible to assess whether the defence has merit and whether the claim should proceed to trial.
How Ravenscroft & Schmierer Can Help?
Cases involving email fraud recovery in Hong Kong require fast action, careful coordination with banks and police, and strategic litigation planning. Ravenscroft & Schmierer advises individuals and businesses on freezing fraudulent accounts, pursuing court orders, and assessing recovery options from recipient account holders.
If you have been affected by email fraud and wish to explore the recovery of misappropriated funds, contact us to discuss your circumstances and available options.
FAQ: Email Fraud Recovery Hong Kong
What is email fraud?
Email fraud occurs when a hacker intercepts or impersonates email communications to redirect payments or obtain money dishonestly.
What should I do first if I fall victim to email fraud?
The first step is to report the matter immediately and seek to freeze the recipient bank account as quickly as possible.
Can money be recovered after email fraud?
Recovery may be possible if funds remain in the recipient account and legal action is taken promptly.
Why do defendants raise a “change of position” defence?
This defence is raised where the recipient claims to have received and disposed of the funds innocently.
How can Ravenscroft & Schmierer assist with email fraud recovery in Hong Kong?
Ravenscroft & Schmierer advises on freezing bank accounts, obtaining court orders, and pursuing civil recovery following email fraud.
Does Ravenscroft & Schmierer assist with applications for default judgment?
Yes. We advise on litigation strategy, including default judgment applications and contested proceedings.
Can Ravenscroft & Schmierer assess whether litigation is worthwhile?
Yes. We assess defences such as change of position and advise whether continuing litigation is commercially sensible.
Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
For specific advice about your situation, please contact:
Managing Partner
+852 2388 3899
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