Failure to Prevent Fraud Act

The UK's regulatory environment is changing. The Economic Crime and Corporate Transparency Act 2023 (ECCTA), effective September 1, 2025, introduces a new "failure to prevent fraud" offense. This legislation fundamentally changes how organizations must handle fraud prevention. Your current approach might be insufficient.

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The Stakes:

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This law targets not only fraud against your company but also fraud committed for your benefit, even by third parties. The consequences of non-compliance are significant, impacting both finances and reputation.

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Critical Questions for Your Organization:

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Do your current anti-fraud measures meet the demands of ECCTA? Can you confidently demonstrate robust internal investigations? Is your whistleblowing system truly effective, encouraging reporting and protecting those who speak up?

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Key Requirements:

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• Internal Investigations: ECCTA requires independent and thorough investigations of suspected fraud, regardless of whether it's against or for the organization. This demands a structured and legally sound process.
• Whistleblowing: A basic hotline is no longer adequate. You need a system that builds trust, ensures confidentiality, and facilitates effective follow-up. Whistleblowers must feel secure in reporting concerns.
• AI: The guidance specifically recommends exploring the use of AI for fraud detection. Are you maximizing available technology?
• Understanding Fraud (The Fraud Triangle): Do you understand the motivations behind fraud within your organization? Analyzing the "Fraud Triangle"—Opportunity, Motivation, and Rationalisation—is essential.
• Individual Responsibility: Accountability is crucial. Decisions about anti-fraud procedures must be documented, with clear lines of responsibility

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Confide Platform: A Direct Path to Compliance:

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Confide Platform simplifies ECCTA compliance by providing a centralized, secure, and automated system for:

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• Whistleblowing: Empower employees to report concerns confidentially, knowing their reports will be addressed and they will be protected.
• Case Management: Manage investigations efficiently, ensuring thoroughness and proper documentation.
• Compliance Automation: Automate compliance workflows, saving time and resources

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Don't wait. Prepare your organization for ECCTA with Confide Platform. Contact us for a demonstration and learn how we can help you reduce risk and build a culture of ethical conduct.

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