Fraud

Question 1

What is the main legislation relating to fraud?

Answer 1

The Fraud Act 2006

Question 2

What are the fraud offences under Section 1 of the Fraud Act 2006?

Answer 2

1. False representation
2. Failing to disclose information
3. Abuse of position
4. Participation in fraudulent business
5. Obtaining services dishonestly
6. Cheating the public revenue
7. False statements by company directors
8. Fraudulent trading

Question 3

What is the new Corporate Criminal Fraud Offence?

Answer 3

Failing to prevent fraud

Question 4

What is the Corporate legislation?

Answer 4

Economic Crime and Transparency Act 2023

Question 5

When is the Economic Crime and Corporate Transparency Act effective from?

Answer 5

1st September 2025

Question 6

Who can commit to failure to prevent fraud?

Answer 6

Large organisations
companies

Question 7

What is failure to prevent fraud?

Answer 7

When fraud is committed by an employee, agent, or other associated person for the organizations benefit and the organization did not have reasonable prevention procedures in place

Question 8

What are the six principles for reasonable fraud prevention procedures

Answer 8

1. Proportionate prevention procedures
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring and review

Question 9

What is new from existing legislation regarding fraud?

Answer 9

An organization can now be prosecuted for failing to prevent fraud alongside the person who committed the fraud

Question 10

What is the aim of the new legislation relating to fraud?

Answer 10

To make organizations responsible for fraud offences committed by employees and to improve fraud prevention measures