A New Requirement in the UK’s Fight Against Fraud: Criminal Charges for the Failure to Prevent Fraud – 2024
A New Requirement in the UK’s Fight Against Fraud: Criminal Charges for the Failure to Prevent Fraud
The UK’s Failure to Prevent Fraud Guidance and Potential Impact on All Major Businesses in the United Kingdom – This Becomes the Game Changer in the UK’s Battle Against Scams and Fraud
Primary Category: Government Regulations
Authors:
• SCARS Editorial Team – Society of Citizens Against Relationship Scams Inc.
• Analysis by Tim McGuinness, Ph.D. – Anthropologist, Scientist, Director of the Society of Citizens Against Relationship Scams Inc.
About This Article
The Economic Crime and Corporate Transparency Act 2023, along with the “Failure to Prevent Fraud” guidance, sets new standards for fraud prevention in the UK’s corporate landscape. It requires large organizations to implement comprehensive fraud prevention strategies across all levels, from top-level commitment to ongoing monitoring and training.
This law is particularly relevant to the payments ecosystem, including credit card processing, as it mandates companies to adopt robust fraud controls, conduct rigorous due diligence, and establish effective reporting channels. This proactive approach not only strengthens corporate accountability but aims to protect consumers from scams and financial fraud by closing potential security gaps in the financial system.
