Loss Prevention

Fraud, and particularly documentary fraud, is becoming increasingly sophisticated and even with the best systems in the world may not be detected. However, most of ITIC's Members are agents (in one form or another) whose duty is to act with the skill and care which can be expected of someone in their position. If the agent fails to detect a sophisticated fraud, this would not mean that he is automatically liable for the consequences, provided that he can evidence that he has acted with reasonable skill and care. If, however, the agent has failed to take the basic steps which any prudent company could be expected to take, then he would probably be found to have been negligent and thus liable for any losses caused to others.