Failure to Prevent Fraud Offence: Prevention Is Now the Only Defence
From 1 September 2025, the UK’s new Failure to Prevent Fraud offence is live under the Economic Crime and Corporate Transparency Act 2023. For the first time, large organisations can be held criminally liable if an employee, agent, subsidiary or other associate commits fraud intended to benefit them.
This is a strict liability offence - meaning prosecutors don’t need to prove that directors or senior leaders knew about the fraud. Liability is automatic unless the organisation can show it had reasonable fraud prevention procedures in place.
Unlimited fines, regulatory scrutiny and reputational damage are now very real risks. As Nick Ephgrave, Director of the Serious Fraud Office, has warned: “Now is the time to take action. Corporations must get their house in order or be ready to face investigation.”
What this means in practice
“Reasonable procedures” don’t mean policies on paper. Regulators expect to see proportionate, active measures such as:
Risk assessments by business unit and third party
Clear codes of conduct and fraud policies
Targeted training for high-risk teams
Confidential reporting and whistleblowing channels
Case management with audit trails
Third-party oversight for agents and suppliers
Continuous monitoring, reviews and board reporting
How imabi Pro helps
imabi Pro brings these measures into one platform, helping organisations create a defensible position under the new law. Features include:
Fraud risk assessment hub – run, track and store results centrally.
Policy visibility & micro-learning – surface fraud policies and deliver role-specific training.
Confidential reporting channels – remove barriers with secure, anonymous speak-up tools.
Case management & audit trails – standardise investigations, escalation and outcomes.
Third-party due diligence – monitor agents, suppliers and delivery partners.
Dashboards for leadership – evidence trends, KPIs and continuous improvement.
Prevention is the only defence. Pro makes sure you can demonstrate it.
“I’ve spent over 30 years in security and policing. The truth is simple: if you’re waiting until fraud happens, you’ve already lost. This law flips the burden – prevention isn’t optional anymore, it’s the only defence. imabi Pro gives organisations the tools to spot problems early, act fast, and prove they took their responsibilities seriously. That’s the difference between being in court and being in control.” - Mark Balaam, Founder & CEO of imabi
The Failure to Prevent Fraud offence is now in force. If you haven’t already taken action, today is the day.
Find out more how imabi Pro can help businesses maintain compliance and support in creating a safer workplace.
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Implement imabi Pro to put robust fraud prevention procedures in place: creating evidence, oversight and assurance that protect your organisation under the new law.
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