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FRAUD

UBS faces record fine for Libor fraud: report

Swiss banking giant UBS may be slapped with a combined fine of $1.5 billion to settle allegations that it manipulated Libor interest rates, the Financial Times reported on Tuesday.

UBS faces record fine for Libor fraud: report
Photo: Twicepix

"UBS is close to finalising a deal with UK, US and Swiss authorities in which the bank will pay close to $1.5 billion," the British financial daily reported, quoting unnamed sources familiar with the matter.
 
 Around three dozen bankers and senior managers will be implicated, and according to the terms of the deal, the Swiss bank's Japanese subsidiary will plead guilty to a US criminal offence, the paper said.

Speculation has been rife in recent days over the amount of the expected deal, which will make UBS the second bank after Britain's Barclays to admit to wrongdoing.

If the Financial Times report is correct, the Swiss bank would be hit with one of the biggest fines ever imposed on a financial institution.

UBS was the first bank to reveal problems in the rate-setting process of the Libor, otherwise known as the London Interbank Offered Rate, used by banks to lend money to each other and which also affects a vast range of contracts around the world.

Other banks are also reportedly in advanced talks with regulators about settling allegations that they too manipulated their Libor information, including Royal Bank of Scotland and Deutsche Bank.

In June, Barclays was fined $452 million by British and US regulators for attempted manipulation of interbank rates between 2005 and 2009.
 
The Libor system was found to be open to abuse, with some traders lying about market interest rates to boost positions or make groups seem more secure.

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FRAUD

How to avoid the most common online scams in Switzerland

Swiss authorities are warning the public against the most common current online, telephone and postal scams and issuing useful advice on how to avoid these shady schemes.

How to avoid the most common online scams in Switzerland
Beware of scams circulating in Switzerland. Photo by Greg Baker / AFP

The number of attempts to extort money from unsuspecting individuals is on the rise in Switzerland, and the National Cyber Security Centre (NCSC), as well as other authorities, are advising the public to be vigilant of any scheme asking for bank account or credit card numbers.

These are some of the most common scams that should ring alarm bells:

Tax arrears

Geneva officials have alerted taxpayers not to fall victim to telephone scams where the callers identify themselves as employees of the cantonal tax office. The person is told that he or she owes money for unpaid taxes, and callers demand the number of the bank account to withdraw the amount owed.

In case the taxpayer refuses, fake employees threaten the victim with a 200,000-franc fine. If the person is elderly — often the most vulnerable victim — the scammers exert pressure by saying their social security payments will be suspended until payment is made.   

Geneva authorities urge the public to inform the police if they receive such a phone call.

READ MORE: Switzerland: Zug residents receive fake letters telling them to quarantine

Package delivery against payment

You may receive an email, supposedly from well-known parcel delivery services, notifying you that a package addressed to you will be delivered once payment is made.

The parcel notification email contains a link to a page asking for credit card details or to activate a service on the mobile phone by sending a text message.

IT support

A caller pretending to be an employee of Microsoft or another IT company tells you that your computer is infected with a virus and new software has to be installed.

The aim of these cyber-attackers is to trick you into downloading a program that will give them access to your computer. 

In most cases, the callers will also try to sell you software licence or another service by asking for your credit card information.

Competitions and prizes

You may get emails, allegedly from well-known Swiss retailers, promising you vouchers for expensive prizes. But in order to receive them, personal data such as credit card details, name, email address, and mobile phone number have to be entered on a fake website.

The fee is immediately charged to your credit card and, unbeknownst to you, you will take out an expensive long-term subscription to a product or service you may or may not get.

The list of all the current scams in Switzerland is here.

If you receive any of the above or similar messages by post, email or phone, the NCSC advises to:

  • Ignore these messages by hanging up the phone and / or deleting emails, moving them to the Spam folder
  • Never give out your credit card number or bank account information to people you don’t know
  • If you did give your card number, contact your credit card company immediately to have the card blocked. Likewise, if you gave out your banking details, get in touch with your bank.
  • In the event of financial loss, the NCSC recommends filing a criminal complaint with the cantonal prosecution authorities. You can search for police stations in your area and their telephone numbers on the Police website.

A good rule to remember is that if an offer or a deal sound too good to be true, or if threats and pressure are involved, they are more than likely scams.

READ MORE: Swiss public warned about fake emails sent from banks and police

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