From 1st September 2025 large organisations including Higher Education providers can be held criminally liable if an employee, agent, subsidiary or other ‘associated person’ commits fraud that benefits the organisation. Crucially, neither a director nor a senior manager needs to have ordered, or even be aware, of the fraud for the organisation to be held responsible for failing to prevent it.
To avoid liability an organisation will need to show they had reasonable measures in place to tackle fraud, including a robust confidential reporting mechanism.
Whistleblowing plays a crucial role in combatting fraud. For several years in a row, the ACFE’s “Report to the Nations” has published statistics showing that fraud is most often discovered through tip-offs, with 43% of cases in 2024 involving a whistleblower.
What organisations should do:
- Review and Enhance Procedures: Assess and improve existing fraud prevention measures to ensure they meet the guidance’s principles.
- Senior Management Commitment: Ensure that senior leadership visibly supports and promotes fraud prevention.
- Conduct Risk Assessments: Perform regular, documented risk assessments to identify and address potential fraud risks.
- Provide Training: Educate employees and associated persons about fraud risks and the organisation’s prevention policies.
- Establish Reporting Channels: Create secure and confidential ways for individuals to report suspected fraud. We have linked up with www.iReport.work to meet this need.
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