Failure to Prevent Fraud Expert Witness UK | ECCTA 2023 & FTPF Offence
The Failure to Prevent Fraud offence under the Economic Crime and Corporate Transparency Act 2023 came into force on 1 September 2025. It makes large organisations liable where a specified fraud offence is committed by an employee or agent for the organisation's benefit and the organisation did not have reasonable fraud prevention procedures in place. The maximum penalty is an unlimited fine.
Large organisations are those meeting at least two of: 250 or more employees; turnover of £36 million or more; or assets of £18 million or more. Specified offences include fraud by false representation, fraud by abuse of position, fraud by failing to disclose, false accounting under the Theft Act 1968, and fraudulent trading under the Companies Act 2006.
The statutory defence requires organisations to demonstrate they had reasonable fraud prevention procedures in place. Expert witnesses assist in assessing whether procedures were adequate, quantifying losses where the offence is alleged, and advising organisations on compliance before an offence occurs. This creates significant new demand for employee fraud expert witnesses across both advisory and litigation mandates.
Frequently Asked Questions
What is the Failure to Prevent Fraud offence under ECCTA 2023?
The Failure to Prevent Fraud offence under the Economic Crime and Corporate Transparency Act 2023, in force from 1 September 2025, makes large organisations liable where a specified fraud offence is committed by an employee or agent for the organisation's benefit and the organisation did not have reasonable fraud prevention procedures in place.
Who is a "large organisation" for FTPF purposes?
The offence targets organisations that meet at least two of: 250 or more employees; turnover of £36m or more; or assets of £18m or more. Expert witnesses assist in assessing the adequacy of fraud prevention procedures and in quantifying losses where the offence is alleged.
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