Fraud risk and the ‘failure to prevent’ fraud offence: What does it mean for charities?

Fraud prevention measures have never been more important. Not only are we in an age of cyber-enabled fraud and AI but charities are also subject to stricter anti-fraud legislation which can make them liable (and subject to criminal prosecution) if they do not take sufficient steps to combat fraud. This includes liability pursuant to:

• The Economic Crime and Corporate Transparency Act (ECCTA) and, specifically, the section 199 Failure to Prevent Fraud offence (the latter coming into force on 1 September 2025). The Charity Fraud Report shows an inconsistent understanding across charities of the offence and the steps that they need to take to protect themselves (many taking some steps but still arguably falling short of having adequate measures in place). The Serious Fraud Office (SFO) views ECCTA as a “landmark” strengthening of its enforcement powers and is actively seeking to use the new offence to hold organisations accountable. SFO Director Nick Ephgrave has explicitly stated he is “very, very keen to prosecute someone for that offence”; and 
• The Crime and Policing Act 2026 (which received Royal Assent on 29 April 2026). This Act further broadens the scope of charity liability (under section 250) which replaces the previous senior managers offence under s196 of ECCTA. The new section 250 offence goes live on 29 June 2026.

During the webinar, we will cover:

• Key provisions of the legislation and what they mean for charities
• Whether and how the legislation applies to your organisation
• Key findings from the Charity Fraud Report and potential areas of liability and exposure to fraud risks
• Practical insights based on our experience working with charities in managing fraud incidents and implementing fraud prevention procedures.
  
  This session will provide everything your charity needs to know, with a focus on clear, practical actions you can take to strengthen your charity's defences.

Who should attend:

Trustees, board members, executive management team and anyone with responsibility for fraud risk and prevention.