Large organizations have several months to prepare for the 'failure to prevent fraud' offence’s introduction. Charlie Weaver, Senior Business Development Executive at i2 Group, explains how visual analysis tools can help these organizations comply with these new regulatory demands while also deliver wider commercial and reputational benefits, not only for those impacted but also for smaller organizations looking to strengthen their fraud prevention policies and procedures using software.
The UK’s Economic Crime and Corporate Transparency Act 2023 marks a significant shift in the fight against fraud, particularly through the failure to prevent fraud offence that it introduces on 1 September 2025. This new offence places responsibility squarely on large organizations to actively prevent fraudulent activities within their operations.
A legislative shift
Fraud currently accounts for 41% of all criminal activity in the UK; incredibly, this latest figure represents a staggering 1,400% increase in fraud over the last decade, according to the Office for National Statistics. However, despite this significant spike, British police forces only spend 1% of their budgets on combating this costly, and damaging, crime.
In a move designed to crack down harder on this criminal activity, the Conservative government introduced legislation in 2023 that shifts the burden of prevention onto the private sector, specifically larger organizations with 250+ employees, a £36 million turnover, or £18 million in assets. Any business operating in the UK or headquartered in the UK, or with a UK nexus that meet the criteria will need to ensure they are ready for these new regulations.
The new offence, which comes into force September 2025, requires these organizations to be far more proactive in preventing fraudulent activities. Organizations that fall short of their new legal obligations risk being prosecuted and fined. Significantly, senior managers, in addition to C-suite executives, will now be held accountable for any failing.
The types of fraud that fall under the scope of this new offence include:
Although it is only a matter of months before these large private sector organizations must implement and improve their fraud prevention procedures, there remains a major knowledge gap among those that risk regulatory sanctions if they are found to be liable.
A lack of stakeholder alignment is also a significant issue. Effective fraud prevention requires coordinated action across compliance, finance, operations and IT departments. However, in many cases, these different stakeholders operate in silos and this makes it easier for fraudsters to go undetected.
Given that the Economic Crime and Corporate Transparency Act 2023 focuses on organizational failings, it is imperative that large organizations strengthen their internal controls.
This is where visual analysis tools can assist in the detection and prevention of fraud, not just for those that will be impacted by the new offence but also others that are looking to strengthen their own policies and procedures. With improved precision and greater speed, these tools can enhance the visibility of fraud risks and consequently make it easier to trace the perpetrators.
While the software supports these large organizations to meet the new legal requirements, it also provides additional business benefits, namely helping to safeguard commercial interests and protecting corporate reputations.
A powerful ally
Because visual analysis tools such as i2 Analyst's Notebook can easily manage complex reams of data, translating this critical information into intuitive, actionable insights, the software platform is well placed to spot any changing patterns in fraudulent activity and can also respond effectively to any legal requirements that are developed to prevent fraud from occurring. The tool offers multiple benefits.
For example, it can:
National security is imperative
In addition to the legal, commercial and reputational benefits that visual analytical tools can provide, there is also its role in delivering enhanced intelligence, a critical strand in national security.
Recognising that the UK has one of the world’s most open and transparent economies, the Economic Crime and Corporate Transparency Act 2023’s wider goal is to bolster national security, enabling faster sanctions to be applied, for example, in the case of Russia’s invasion of Ukraine and granting powers to seize crypto assets, which are increasingly used in illicit finance.
By producing clear, more compelling evidence trails, visual analytical tools can underpin the critical intelligence sharing with law enforcement that is so integral when imposing sanctions and tackling illicit finance.
Conclusion
Fraud prevention is no longer a best practice; from 1 September 2025 it becomes a legal obligation. As large organizations adapt to the requirements of the failure to prevent fraud offence, visual analysis tools offer a practical, scalable, and intelligent way to meet these challenges head-on. Businesses that invest in these technologies will not only mitigate legal risk but also protect their reputations, stakeholders, and bottom lines.