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Fraud Solicitors

If you or your business is currently subject to a fraud investigation or suspects fraudulent activity, it’s important to get in touch with a fraud solicitor. In these cases, time is of the essence, and, at Lawhive, our team is here to help you through the investigation, increasing your chances of the best outcome for your organisation. 

Fraud investigations, by nature, can be highly disruptive for your business, and damage your reputation. We are committed to helping you reduce these operational and reputational risks throughout the investigation and beyond. 

In the event of a criminal case, our team of fraud solicitors is ready to provide defence and support throughout the process. We understand the serious consequences that a fraud conviction may carry for both individuals and businesses, and our fraud lawyers are dedicated to making sure you receive fair treatment from the police, regulators, and the judicial system. 

Alternatively, if you suspect you have fallen victim to fraud, we can help you deal with this in the best way. 

Whether you find yourself a victim of fraud or facing allegations, our network of fraud solicitors is here to safeguard your interests. To find out more about how we can help you, get a free case assessment from our expert legal assessment team today. 

How can a fraud lawyer help? 

Facing an investigation or charges for fraud is a critical situation. Fraud solicitors specialise in handling cases related to fraud and play an important role in defending individuals against prosections and minimising financial penalties or prison sentences. 

Often, fraud cases involve government agencies such as the Serious Fraud Office (SFO) and Financial Services Authority (FSA), who carry out investigations. High-stress levels during these investigations can make it difficult for an individual to defend themselves. A fraud lawyer provides support and guidance through the process.

Fraud Act 2006 

The Fraud Act 2006 is designed to address criminal actions related to fraud and obtaining services dishonestly.

It establishes legal consequences for individuals who engage in deceptive practices for personal gain and ensures fairness and accountability where people might attempt to deceive others or obtain service in an unethical manner.

What is fraud? 

Fraud means deceiving someone, and there are different ways it can happen: 

1. Fraud by false representation - when a person lies or gives false information to deceive someone. 

2. Fraud by failing to disclose information - when someone doesn’t disclose important information when they should, to deceive; 

3. Fraud by abuse of position - when someone takes advantage of their position in a way that’s dishonest and deceives others. 

Fraud can take various forms, from low-value offenses to complex schemes. Some examples of fraud are: 

• Phone scams; where callers pretend to be from legitimate businesses or organisations to trick someone into giving them money, bank details, or installing malicious software; 

• Card skimming; where criminals use special devices to get a victim’s card details;

• Investment scams; where perpetrators contact people via phone, email, or social media offering unrealistically high returns on investment; 

• Ticketing scams; where fraudsters set up convincing websites selling fake or non-existent tickets for popular events. 

What are the penalties for fraud?

If someone is found guilty of fraud, the penalty can range from a community order, substantial fine, or a prison term of up to 10 years.

The penalty someone might face for fraud depends on whether the fraud was a planned or opportunistic act, the extent of financial loss on the victim(s), how long the fraud went on, and if there were efforts to hide or get rid of the evidence. 

If you are facing a fraud allegation, it’s understandable that you might feel terrified at the prospect of a prison sentence. However, in certain cases, considerations may reduce the severity of the sentence such as cooperation with authorities, voluntary return of money, and evidence that the individual stopped the fraudulent activities before being apprehended.

Get in touch with us today to see how we may be able to help you defend your case and get the best outcome for your circumstances.

How common is fraud in the UK? 

Fraud is one of the most common crimes experienced by victims in England and Wales, and it costs the country billions of pounds each year. In the first six months of 2023 alone, a total of £580 million was stolen by criminals. 

Fraud also has wide-reaching consequences. For individuals, especially vulnerable victims, this can include unaffordable personal losses. Organisations that fall victim, or indeed are wrongly accused of fraud, can face challenges staying in business or sustain damage to their reputation among customers. 

Types of fraud

Serious high-value fraud 

Serious high-value fraud is when someone deceives others for personal gain, and the deception involves large sums of money. This can include: 

• Investment fraud, such as share scams; 

• Pyramid schemes; 

• Corporate fraud (including asset stripping and fraudulent trading)

High-value fraud cases often attract a lot of attention because they involve serious crimes and substantial amounts of money. 

Investment fraud 

Investment fraud can take different forms, often involving promises of significant returns. Typically, criminals reach out to individuals unexpectedly and persuade them to invest in schemes or products that turn out to be either worthless or non-existent. Once payment is received, these criminals often disappear. 

Pension scams 

Pension scams usually use convincing websites, materials, and representatives to convince victims to transfer their pensions or release funds through free pension reviews, promises of higher returns, or to help release cash from a pension early. 

Often, the money is invested in high-risk ventures, like overseas property, or renewable energy bonds, or it may be stolen outright. 

Like many scams, pension scams are tricky to identify because scammers appear trustworthy. In lots of cases, victims may be introduced to the scam by friends or family members who are unaware they are being scammed. 

Identity theft and identity fraud 

Identity theft can happen to anyone, whether they are alive or dead. It happens when fraudsters get enough personal information (like name, date of birth, address, etc) to commit fraud. Identity theft isn’t considered a recordable crime on its own. It only becomes so when the stolen identity is used by someone else for financial gain, known as identity fraud. 

Identity fraud is when someone uses a stolen identity for criminal activities, like obtaining goods or services through deception. This can include opening bank accounts, getting a credit card, or loan, claiming state benefits, or ordering goods. 

Bankruptcy and insolvency fraud 

Fraud in bankruptcy and insolvency can involve deceptive practice before insolvency or the creation of phoenix companies. Phoenix companies are new entities with the same directors, not responsible for previous losses of the previous business. 

In these cases, the victims are often businesses that extend credit to the bankrupt individual. This kind of fraud also includes illegal trading during suspension or disqualification. 

False accounting fraud 

False account fraud happens when a company manipulates its financial records to look stronger than it is. This can involve altering accounts, presenting misleading figures, or keeping two sets of financial records. The motivation for this type of fraud is to present a misleading financial figure to secure financing, inflate profits, or hide losses. 

Tax evasion 

Tax evasion is the act of avoiding taxes by providing HMRC with false financial information. Tax evasion can be carried out by individuals or businesses through misrepresenting finances, failing to disclose relevant information to HMRC, or neglecting proper accounting. 

Whether you’ve been wrongly accused, missed providing necessary information, or trusted financial matters to others, getting legal help from a solicitor in these cases is essential to ensure fair treatment during investigations. 

Mortgage fraud

Mortgage fraud happens when someone gives false information on a mortgage application or manipulates property values to secure larger loans. If you’re facing an investigation, it’s important to seek advice from a solicitor for guidance. 

Benefit fraud

Benefit fraud happens when an individual or individuals dishonestly claim a state benefit they aren’t entitled to. This could include claiming housing benefits they are not entitled to, falsely claiming disability allowances or carers allowance, or failing to report changes in circumstances that make them ineligible for benefits. 

Counterfeit goods fraud 

Counterfeit goods are products like designer clothes, electronics, or cosmetics that are fake but sold as authentic. They often often use the branding of well-known companies, and sellers profit by misleading buyers who think they are getting a good deal. 

If you are found guilty of counterfeiting or forgery, you can be charged with fraud. Penalties for this can include a custodial sentence of up to 10 years and/or substantial fines. 

Insurance fraud

Insurance fraud is when false claims are made to insurance companies. Examples include exaggerating losses, making multiple claims for the same incident, or intentionally damaging assets for an insurance claim.

Insurance fraud can also include providing false information to get more favourable terms or intentionally under-insuring to reduce premiums. This can apply to different types of insurance, including life assurance. Life assurance takeover happens when someone’s life assurance is claimed fraudulently following account takeover fraud. 

Bribery and corruption 

Bribery is when an incentive or reward is offered, promised, or provided to gain an advantage, whether personal, commercial, regulatory, or contractual. 

Corruption is the abuse of power for personal gain. 

If you are under investigation, have been charged with, or are facing prosecution for fraud offences involving bribery and corruption, get a free case assessment from our legal assessment team for help and advice. 

Tax fraud

Tax fraud involves the theft of taxes owed to HMRC or tax credits paid by HMRC. This includes: 

• Tax Evasion: Deliberately failing to declare income or falsifying expenses; 

• Smuggling goods: Illegal moving goods liable to excise duty, customs duty, or VAT; 

• False claims: Making false claims for amounts not owed; 

• VAT fraud: Charging VAT on a product, but not paying it to the government (Missing Trader Intra-Community Fraud or carousel fraud). 

Tax fraud not only has legal consequences but can also harm the reputation of businesses and individuals, causing stress for business owners and their families. Tax fraud solicitors specialising in advising and defending in such cases can help secure a more favourable outcome for those facing investigation. 

Bank fraud

Bank fraud can take many different forms. For example, it can happen when someone steals your card or bank account information through identity theft. It can also include:

• Account takeovers (ATO): When a criminal pretends to be a genuine customer, takes control of an account (like a bank account or email), and makes unauthorised transactions;

• New account fraud: When criminals successfully apply for an account with a financial institution using their own, a stolen, or a fake identity solely for fraudulent activities; 

• Money laundering: The process of making illegal money appear legal by passing it through various transactions involving foreign banks or legitimate businesses; 

• Payment fraud: When cybercriminals carry out false or illegal transactions through cash withdrawals, deposits, and online payments;

• Bank card and cheque fraud: When criminals steal bank cards or chequebooks, or obtain card or account details, allowing them to withdraw money or make credit transactions.

Credit card fraud 

Credit card fraud, or plastic card fraud, is when personal information from credit, debit, or store cards is compromised. This information can be used by criminals to make purchases or obtain unauthorised funds. Plastic card fraud also includes ‘card not present’ fraud, which happens online, over the phone, or by mail order. 

Insider trading

Insider trading involves individuals within a company using or sharing non-public information for trading, which can result in an unfair advantage. This is considered fraudulent activity and could result in a lengthy prison sentence. 

Authorised Push Payment (APP) Fraud 

APP fraud involves tricking individuals into transferring money to fraudsters. Types of APP scams include:

• Trickery involving the purchase of nonexistent or undelivered goods; 

• Impersonating bank staff to convince someone to transfer funds out of their account to the fraudsters.

What is fraud by false representation? 

Fraud by false representation is when someone tells a lie or gives misleading information to gain something for themselves or cause harm or loss to someone else.

This can be any statement or claim about facts or laws, including what someone thinks or feels. It can be something said outright or implied by a human or any system or device designed to receive, convey, or respond to messages. 

A representation is considered false if it’s not true or misleading, and the person making it knows (or at least thinks) that it might be untrue or misleading. 

What is fraud by failing to disclose information? 

Fraud by failing to disclose information is when someone purposely doesn’t share information they’re legally supposed to, to dishonestly gain something for themselves or cause harm. 

This usually applies to situations where a person or business has to share specific information by law. If they deliberately avoid doing this for their gain, or to cause harm, they may be guilty of fraud. 

What is fraud by abuse of position? 

Fraud by abuse of position is when someone in a position of trust uses that position dishonestly to gain something or cause harm or loss to someone else. This can be through direct actions or neglecting their duties. 

How is 'gain' and 'loss' defined in fraud law? 

When we talk about gain and loss in the context of law, we’re specifically referring to changes in money or other types of property, including physical property (like a house or car) or intangible property (like rights or intellectual property). 

Gains or losses in these cases can be temporary or permanent. Gains aren’t just about getting something new, it also includes keeping what one already has. So, if someone benefits by keeping hold of something, that’s also considered a gain.

Similarly, loss isn’t just about giving up something. It also includes not getting something that one could have gained. For example, if someone misses out on an opportunity, that’s considered a loss. 

What does possession of fraudulent articles mean? 

Possession of fraudulent articles means that someone has in their possession or control any item intended for use in fraud. 

If someone is found guilty of having fraudulent articles they could face imprisonment for up to 5 years, a fine, or both.

What does making or supplying articles for use in fraud mean? 

If someone makes, adapts, supplies, or offers to supply any item that they: 

• Know is designed or adapted for use in fraud; or 

• Intend to use to commit or assist in fraud 

They may be accused of making or supplying articles for use in fraud. 

The consequences for making or supplying articles for use in fraud can include imprisonment for up to 10 years, a fine, or both. 

What does it mean to participate in a fraudulent business carried on by a sole trader? 

If someone knowingly takes part in running a business designed to defraud creditors or for other fraudulent purposes, they can receive either a prison sentence for up to 10 years, a fine, or both.

This applies to businesses that are run by a person outside of the reach of the Companies Act 2006 regarding fraudulent trading and are operated with the intent to defraud creditors or any other fraudulent purpose. 

What does obtaining services dishonestly mean? 

If a person gets services for themselves or someone else through a dishonest act, they’re committing fraud. This applies if: 

• Services are provided with the expectation of payment; 

• The person gets the services without making any payment or without paying in full; 

• At the time of getting the services, they know that payment is, or might be, expected but they intend not to pay at all or not pay in full. 

Obtaining services dishonestly can result in imprisonment for up to 5 years, a fine, or both. 

Who is liable for fraud in a company? 

If a company commits fraud, and a director, manager, or secretary is found to have consented or deliberately ignored or overlooked it, that individual is also held responsible and can be prosecuted. This rule also applies to members managing a company’s affairs, treating them like directors in terms of liability for any offenses. 

When should you seek legal help for fraud? 

If you are facing fraud charges, you must get help from a fraud lawyer who can help you effectively defend yourself. With your cooperation they may be able to do: 

• Challenge the evidence presented against you; 

• Prove that you did not intend to commit fraud; 

• Prove that you were coerced or manipulated into committing fraud. 

Getting legal counsel early in the process will give you a better chance of success in defending your case. 

Similarly, if you have fallen victim to fraud, it is important to get help as soon as possible both from legal representatives and other organisations like your bank to stop the activity, protect your money and assets, and potentially claw back any losses you have incurred.

At Lawhive, our network of fraud lawyers can help either if you’re under investigation for fraud, or if you’ve fallen victim to fraud or a scam. We can provide legal advice and support on: 

• Debit or credit card fraud

• Insurance fraud

• Mortgage fraud 

• False accounting 

• Tax fraud and HMRC investigations 

• Insider trading

• Money laundering 

• Confiscation proceedings 

• Serious fraud 

• Deferred Prosecution Agreements (DPSa) 

• Self-reporting corporate fraud.

To find out more, tell us about your case for a free assessment and fixed-fee quote from our network of expert fraud lawyers.