Fraud: stop the rot

Preventing fraud is just as important as dealing with the aftermath

There’s a popular misconception that fraud is a victimless crime. At the Serious Fraud Office the victims of fraud are at the heart of what we do.

In the public consciousness we are primarily associated with prosecuting high-level multi-million pound cases, often involving the capital markets. True, these are an important part of our role.

But crimes such as boiler-room frauds and advance fee frauds that directly impact ordinary people are equally prominent on our radar.

I see the impact of these frauds every working day through the hardship and anguish that fraud causes. In one SFO case an elderly couple committed suicide after they lost their pensions as a result of an alleged fraud. Many people like them spend years building financial security only to have a fraudster take it away. This incenses me on both a personal and professional level, and strengthens my determination to ensure these victims get the justice and compensation they deserve.

We are handling one case at the moment where more than 1,000 people have been defrauded of a huge amount of money. This is the kind of case where the SFO’s skills in detection, prosecution and compensation really come to the fore and where we can help to heal the damage to people’s lives.
With this in mind, we are committed to achieving three things. The first is to get fraudsters into court as quickly as possible. The second is to secure adequate compensation for the victims. And the third is to protect people more effectively from fraud before it happens.

The first two are mainly about simplifying legal processes and ensuring the right provisions are in place. But the third requires us to do more. The SFO needs to go beyond a traditional reactive approach and reach out into society to share our knowledge and experience.

What does this involve? It means getting out into businesses and schools to educate people about fraud risks and warning-signs.

It means collaborating with law enforcement authorities via the National Fraud Strategic Authority.

And it also means building closer relationships with intermediaries such as the accountancy
institutes to align our approaches, mount joint initiatives and communicate more actively.

With fraud, like disease, prevention is better than cure.

The SFO will always continue to prosecute financial crime. But the best way to all to work together to prevent it happening in the first place.

Richard Alderman is director of the Serious Fraud Office