Preventing fraud and fraudulent behaviour

To align with recent legislation, organisations now need to strengthen their fraud prevention procedures and evidence that their processes are sufficiently robust.

The UK Economic Crime and Corporate Transparency Act 2023 (ECCTA), introduced a new offence of failing to prevent fraud that comes into force on 1 September 2025 and holds organisations liable for fraudulent activities conducted by an ‘associated person’ for the organisation’s benefit. Organisations in scope will be able to avoid prosecution if they can demonstrate that they have in place ‘reasonable procedures to prevent fraud’

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What we do

GoodCorporation works with organisations to help them assess, design, build and embed the practices and procedures necessary to comply with fraud prevention legislation.

We use our Framework on Preventing Fraud to evaluate existing operations, identify fraud risks and help design, build and embed appropriate controls and mitigating measures to ensure that an organisation has reasonable fraud prevention procedures in place.

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The GoodCorporation
Framework on Preventing Fraud

The GoodCorporation Framework on Preventing Fraud is a set of responsible business principles which can be used as a tool to improve the management practices needed to prevent fraud and fraudulent behaviour. Designed to help organisations respond to ECCTA, the framework covers all of the fraud offences covered by the Act, including mis-selling, mis–representation, false claims, over-charging and dishonest sales practices.

All relevant business functions are covered, including sales and marketing, procurement, finance, government and regulatory affairs and human resources.

In addition to evaluating operations and identifying fraud risks, the framework can be used to conduct high-level reviews of policies and procedures, as well as site level assessments testing the effectiveness of any existing procedures in place.

Companies working with GoodCorporation can use these assessments for board reports, internal assurance, external reporting and as evidence of reasonable fraud prevention procedures.

The framework follows GoodCorporation’s established methodology using our independent assessment process for evaluating the practices and procedures under review.

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our Framework

Fraud prevention Framework

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Preparing for ECCTA:
what businesses need to do now

The new failure to prevent fraud offence will come into force on 1 September 2025.

An organisation will be liable under the new offence if a person acting on its behalf commits any of a range of specified fraud offences. Strongly supported by the Serious Fraud Office and the Law Commission, the new legislation, and in particular the new failure to prevent fraud offence, is aimed at improving fraud prevention procedures and strengthening corporate culture to reduce the risk of fraudulent behaviours.

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ECCTA 2023: Guidance for organisations on the failure to prevent fraud offence

Government guidance on the failure to prevent fraud offence was published in November 2024 and sets out in detail the measures that companies should adopt to form the basis of their reasonable fraud prevention procedures.

Our fraud prevention blog unpacks the government guidance, including the definition of fraud for the benefit of the company (‘outward fraud’), on which the legislation hinges, and the steps that companies should now be taking based on the guidance.

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GoodCorporation has a thorough understanding of how to assess adequate procedures.  Their years of experience provided us with a trustworthy, third party review of our internal systems.

Jane Earl
FORMER COMPANY SECRETARY, BBC WORLDWIDE

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Preventing fraud and fraudulent behaviour

What we do