Are UK firms ready for the new ‘failure to prevent fraud’ offense?

Caroline Black, a consultant specialising in white collar crime at Gherson LLP, was recently featured in a Law360 article: Looser SMCR May Leave Banks More Open To Fraud Charges offense.

From 1 September 2025, the Serious Fraud Office (SFO) will begin actively enforcing this offense, marking what it calls a “landmark moment” that will significantly widen the scope of prosecutions.

Caroline commented:

“This streamlining potentially puts regulated firms at greater risk of fraudsters and subsequent prosecution under the ‘failure to prevent fraud’ offense in the event that a fraud is committed which benefits the organization”.

She added:

“Firms who are not yet ready should beware”.

With enforcement ramping up, now is the time for companies to review and strengthen their fraud prevention procedures.

Read more in the articles:

• Looser SMCR May Leave Banks More Open To Fraud Charges (Law360, 30 July 2025)
  
• FCA rule change may put firms at risk of fraud prosecution (Law360, 4 August 2025)

Updated: 5 August 2025