course: Understanding the uk offence of
failure to prevent fraud

Audience: Solicitors, paralegals, support staff, accounts and compliance personnel
Duration: 1.5hrs (90 minutes)

Learning Outcomes

By the end of this course, delegates will:

Recognise the types of fraud risks affecting law firms
Understand their responsibilities under the SRA and AML regulations
Spot early warning signs of fraud
Know how to respond appropriately to suspected fraud
Apply firm-wide controls and preventative measures

Course Breakdown

Part 1: Introduction to Fraud in the Legal Sector (15 mins)

Topics Covered:

What is fraud? Legal definition and practical examples
Why law firms are targeted: Trust account access, client funds, conveyancing fraud
Relevant legislation:
- Fraud Act 2006
- Money Laundering Regulations 2017
- Proceeds of Crime Act 2002 (POCA)
- Bribery Act 2010

Activity: Quick poll – “Which types of fraud have you come across or heard about in the legal sector?” – Discussion?

Part 2: Key Risks for Solicitors Firms (20 mins)

Topics Covered:

Client money fraud and misuse
Billing fraud and time recording manipulation
Conveyancing and property fraud (e.g. identity fraud)
Employee fraud and ghost staff
Cyber fraud and phishing
Third-party scams (e.g. fake clients, social engineering)

Case Study: SRA Enforcement Cases – Brief review of 1–2 real examples (e.g., solicitors struck off for misuse of client account).

Part 3: Red Flags and Early Warning Signs (15 mins)

Topics Covered:

Common indicators of internal and external fraud
Lifestyle red flags: sudden wealth, secrecy, reluctance to take leave
Transactional red flags: inconsistent records, rushed deals, reluctance to provide documentation
IT and access red flags

Activity: Group discussion or breakout – “What red flags have you encountered or would raise concern?”

Part 4: Controls, Procedures & Your Responsibilities (20 mins)

Topics Covered:

The role of the SRA Accounts Rules
Who’s responsible for prevention? …….everyone
Key internal controls:
- Dual authorisations – 2FA
- Segregation of duties
- Client identity checks (CDD)
- File audits and reconciliations
Reporting obligations under POCA and SARs

Checklist Handout: Internal fraud control checklist for daily use

Part 5: Responding to Suspected Fraud (10 mins)

Topics Covered:

What to do if you suspect fraud
Reporting lines within the firm
External reporting (NCA, SRA)
Protecting evidence and confidentiality

Scenario Activity: “You notice discrepancies in client accounts – what steps would you take?”

Part 6: Questions & Wrap-Up (10 mins)

Q&A
Reinforce Key Messages:

Fraud is a real risk, not a remote one
You’re the first line of defence
Know the red flags and report concerns promptly

Optional Quiz or Recap Activity…….Menti

Post-Session Materials

PDF Slide Deck
Red Flags & Controls Handout
Fraud Reporting Flowchart

Get in touch about our 'Understanding the UK Offence of Failure to Prevent Fraud' course

For more information about our Fraud Prevention Services, or to book or find out more about this course, contact our experts today.

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