Financial Crime World

Financial Crime Definition Takes Centre Stage in UK: What You Need to Know

In recent years, fraud has emerged as the most prevalent crime in England and Wales, with an estimated 3.4 million incidents reported in the year ending March 2017 alone. The rise of cyber-related fraud has been particularly striking, accounting for more than half of all cases.

The Crown Prosecution Service’s Efforts to Combat Financial Crime

The Crown Prosecution Service (CPS) is at the forefront of tackling this menace, dealing with thousands of fraud cases every year. The Serious Economic, Organised Crime and International Directorate (SEOCID) is responsible for handling some of the most complex cases, with a team of specialist prosecutors dedicated to fighting financial crime.

What Constitutes Financial Crime?

But what exactly constitutes financial crime? In simple terms, fraud is defined as the act of gaining an unfair advantage over another person, often financially. However, the reality is much more nuanced, and there are numerous forms of financial crime that can have devastating consequences for individuals and businesses alike.

Common Examples of Financial Crime

Some of the most common examples include:

  • Tax Evasion: The illegal non-payment or under-payment of tax by individuals or companies.
  • Benefit Fraud: The fraudulent claiming of government benefits through dishonesty, such as failing to report a change in circumstances.
  • Money Laundering: The process of sanitising criminal proceeds to disguise their illicit origins.
  • Online Fraud: A catch-all term for any type of fraud committed using the internet, including fraudulent sales, romance scams, and more.
  • Identity Fraud: Using stolen identity details to obtain goods or services by deception.
  • Banking Fraud: Frauds against banks or customers, including theft of banking details and falsification of bank transactions.
  • Investment Fraud: Cold calls, emails, or direct approaches encouraging investment in worthless or non-existent schemes.
  • Bribery/Corruption: Giving or receiving financial or other advantages in connection with the improper performance of people in positions of trust.
  • Electoral Fraud: Interfering with elections through fraudulent voting, nomination paper fraud, and incorrect declaration of electoral expenses.
  • Fraud by Abuse of Position: Abusing a position of responsibility to safeguard the financial interests of another person or organisation.

Conclusion

As the CPS continues to tackle this complex and evolving threat, it’s essential for individuals and businesses to be aware of these various forms of financial crime. By understanding what constitutes fraud, we can work together to prevent and prosecute these crimes more effectively.