Your browser is out of date or unsupported. As a result, some elements of this website may not be fully functional. For the best possible user experience, it is recommended that you use the latest version of Chrome, Firefox or Microsoft Edge.
TV Edwards Solicitors Logo
Call us on: 020 3440 8000
  • Home
  • About Us
    • Awards and Accreditations
    • Corporate and Social Responsibility
    • Cybercrime and Fraud Warning
    • Make a Secure Payment
    • Our London Offices
    • Pricing
    • What Our Clients Say
    • Case Studies
  • Services
    • You & Your Family You & Your Family
      • Community Care Solicitors
      • Court Of Protection Solicitors
      • Criminal Defence Solicitors
      • Dispute Resolution Solicitors
      • Family Law
      • Personal Injury Claims
      • Wills And Probate Solicitors
    • You & Your Property You & Your Property
      • Housing Solicitors
      • Property Disputes
      • Residential Property
    • You & Your Business You & Your Business
      • Alcohol & Entertainment Licensing
      • Business Crime Solicitors
      • Commercial Litigation for Complex Cases
      • Commercial Property Solicitors
    • _
  • Our People
    • Alcohol and Entertainment Licensing
    • Community Care
    • Court of Protection
    • Criminal Defence
    • Dispute Resolution
    • Family Law
    • Housing
    • Partners and Management Team
    • Personal Injury
    • Property
    • Wills and Probate
  • News and Blogs
  • Careers
TV Edwards Solicitors Logo
  • Welcome to TV Edwards Solicitors
  • You & Your Family
    • Family and Children Law
    • Wills And Probate Solicitors
    • Personal Injury Claims
    • Dispute Resolution Solicitors
    • Mental Health Solicitors
    • Court Of Protection Solicitors
    • Community Care Solicitors
    • Criminal Defence Solicitors
  • You & Your Property
    • Residential Property
    • Property Disputes
    • Housing Solicitors
  • You & Your Business
    • Commercial Property Solicitors
    • Commercial Litigation for Complex Cases
    • Business Crime Solicitors
    • Alcohol & Entertainment Licensing
  • About Us
    • Our London Offices
    • What Our Clients Say
    • Pricing
    • Make a Secure Payment
    • Awards and Accreditations
    • Case Studies
  • Our People
    • Community Care
    • Court of Protection
    • Criminal Defence
    • Dispute Resolution
    • Family Law
    • Housing
    • Alcohol and Entertainment Licensing
    • Mental Health
    • Partners and Management Team
    • Personal Injury
    • Wills and Probate
    • Property
    • Support Team
  • News and Blogs
  • Careers
Call us on: 020 3440 8000
×
  • Divorce Solicitors
    • Divorce process
    • Finances
    • Civil partnerships
    • Child arrangements
  • Child Law Solicitors
    • Child arrangements
    • Social services
    • Adoption Solicitors
    • Special guardianship
    • Child Relocation Solicitors
    • Child Abduction Solicitors
  • Modern Parenting
    • Surrogacy
    • Fertility
    • Donor conception
    • Co-parenting
    • Adoption Solicitors
  • Unmarried couples
    • Pre nups, post nups and pre partnership agreements
    • Cohabitation agreements
    • Separation
    • Finances for children
  • Domestic abuse
    • Domestic abuse
    • Forced marriage
    • FGM
×

Start typing to search.

    ×
    TV Edwards Solicitors Logo

    020 3440 8000

    enquiries@tvedwards.com

    Our Offices

    TV Edwards Solicitors Logo

    020 3440 8000

    enquiries@tvedwards.com

    Our Offices

    Contact Us

    Please enter your first name(s).
    Please enter your surname.
    Please enter a valid email address.
    Please enter your contact number.
    Please select an option.
    Please enter a message.

    We’ll only use this information to handle your enquiry and we won’t share it with any third parties. For more details see our Privacy Policy.

    TV EDWARDS SOLICITORS LLP

    How to avoid Civil Fraud: Guidance for Businesses

    Civil fraud can be defined as “a deceptive act committed to gain an unfair advantage”.

    Back to News & Blogs 23rd April 2024

    Adam Haffenden
    Adam Haffenden
    Partner - Head of Dispute Resolution

    Blog Commercial Litigation Dispute Resolution

    In the complex world of businesses, the threat of civil fraud poses a significant risk to the integrity and reputation of companies. Enterprises must remain vigilant and proactive in fighting fraud. This article serves as a comprehensive guide for businesses, offering inputs into the nature of civil fraud, its consequences, and approachable strategies for preventing it.

    Definition

    Civil fraud can be defined as “a deceptive act committed to gain an unfair advantage”. Unlike criminal fraud, civil fraud involves disputes between private parties seeking damages or restitution.

    To establish civil fraud, four elements must be demonstrated:

    1. Material Misrepresentation: false information or hidden material facts were provided with the intent to deceive.
    2. Intent to Deceive: There must be a verifiable intent to manipulate, deceive, or defraud the victim.
    3. Reliance: The victim reasonably relied on the misrepresentation or concealment.
    4. Damages: The victim suffered quantifiable harm or losses as a result of the above.

    Civil fraud in a business context

    In economically uncertain conditions, businesses tend to think more about innovation, growth and survival rather than risk management, due diligence and internal fraud prevention controls. But this approach leaves businesses particularly exposed to fraud, with many owners unaware of the risks their businesses face.

    Civil fraud within businesses includes practices aimed at gaining an unfair advantage or causing harm to shareholders. It usually includes financial statement fraud, embezzlement, insider trading, and procurement fraud. The main actors can include anyone trying to exploit vulnerabilities within the companies.

    The cost of fraud

    The impact of fraud on businesses can be substantial and might lead to financial loss, legal liabilities, or even reputational damage. Beyond the main losses the companies may suffer, civil fraud also threatens the relationship between shareholders, investors, regulators, and customers. Companies may end up facing litigation or regulatory investigations which can lead to legal battles and fines.

    Identifying fraud

    Indicators of fraud exist, and businesses must be able to identify them in order to protect their integrity and reputation. Recognising these warnings plays a crucial role in preventing civil fraud. They include:

    1. Discrepancies: Discrepancies that remain unexplained in financial records, transactional data or inventory levels.
    2. Suspicious Behaviour: behaviour such as unusual secrecy, excessive reluctance to provide information or change of behaviour from employees.
    3. Changes in Patterns: Unexpected changes in behaviours or pattern of transactions can be an indicator.

    How to prevent fraud

    There are measures companies can adopt to prevent the risk of civil fraud. These measures are multifactorial and require awareness on different levels:

    1. A Culture of Integrity: by being transparent, upfront and accountable throughout the whole company, including strong ethics and good compliance.
    2. Internal Controls: safeguarding measures can prevent civil fraud by having oversight mechanisms, supervision or auditing. For example, understand how money leaves your business, including methods of payment and who has authority to make those payments.
    3. Due Diligence: conducting due diligence within partners or suppliers minimises the risk of civil fraud by ensuring integrity. Do not be coerced into a trade deal if you are not 100% sure who you are dealing with.
    4. Providing Training and Awareness Programmes: Prevention can also be achieved by educating shareholders with awareness and ethical conduct within employees or clients through training.

    Consequences and remedies

    If businesses suspect fraud, they must act quickly and inexorably by investigating, mitigating their losses and putting corrective measures in place. In addition, businesses should reassess and strengthen their preventive measures. Actions can include working hand in hand with regulatory bodies.

    In order to pursue the wrongdoer for business fraud through the civil courts for the repayment of misappropriated funds, there must be evidence of wrongdoing, for example, misfeasance, misrepresentation, deceit or breach of contract.

    Conclusion

    Civil fraud poses a significant threat to the integrity of commercial and financial transactions. These risks are substantial enough to necessitate safeguarding measures. By understanding the nature of civil fraud and implementing high standards,, businesses can mitigate these risks and maintain trust with their shareholders and customers.

    How we can help

    Civil fraud litigation is a very specialist area of law and often highly complex. Having legal representation that is of the highest quality in this field is imperative so that a robust strategy can be formulated which will seek to minimise your risk. If you would like to discuss a potential civil fraud matter or would like to find out about our services more generally, please contact Adam Haffenden on 0203 440 8139 or email adam.haffenden@tvedwards.com

    Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.

    Related Services:

    Dispute Resolution Solicitors
    Civil Fraud Solicitors
    Commercial Litigation for Complex Cases

    More Articles

    Article Image

    A fond farewell to our Senior Partner, Jacky Starling

    28th May 2025
    Article Image

    TV Edwards secures reversals of local authority decisions to reduce a package of care

    27th May 2025
    Article Image

    TV Edwards named one of The Sunday Times Best Places to Work 2025

    23rd May 2025
    Article Image

    Promotion Announcement: Alpa Ghelani

    20th May 2025
    Article Image

    Don’t DIY Your LPA – Here’s why ?

    19th May 2025
    Article Image

    International Family Day: Our family law commitment to you

    15th May 2025
    All Articles 

    Contact Us

    020 3440 8000|enquiries@tvedwards.com|Our Offices

    020 3440 8000
    enquiries@tvedwards.com
    Our Offices
    Contact Us

    The Legal 500 2025 Leading Firm
    Chambers 2025 Top Ranked
    The Sunday Times best place to work 2025 logo
    The Times Best Law Firms 2025
    Cyber Essentials Accreditation Logo
    Lexcel Logo
    Lexcel Logo

    © 2025 TV Edwards LLP is authorised and regulated by the Solicitors Regulation Authority (465533) and is a Limited Liability Partnership registered in England and Wales number OC325696. Details of the SRA Code of Conduct can be found at sra.org.uk. Registered name: TV Edwards LLP. Registered Office: 35-37 Mile End Road, London, E1 4TP.

    TV Edwards Solicitors Logo

    Contact Us

    Call us on: 020 3440 8000

    Our Offices


    • Quick Links
      • Pricing
      • Pay Online
      • Careers with TV Edwards
    • Insights
      • Blogs
      • Case Studies
    • Regulatory
      • Legal Disclaimer
      • Terms of Business
      • Accessibility
      • Privacy Policy – Website Users
      • Privacy Policy – General
      • Cookies
      • Complaints Procedure

    Find us on:


    TV Edwards Solicitors Logo
    © 2022 TV Edwards LLP is authorised and regulated by the Solicitors Regulation Authority (465533) and is a Limited Liability Partnership registered in England and Wales number OC325696. Details of the SRA Code of Conduct can be found at sra.org.uk. Registered name: TV Edwards LLP. Registered Office: 35-37 Mile End Road, London, E1 4TP.
    Use of Cookies

    Our website requires the use of cookies. Enabling all cookies makes sure the website works as smoothly as possible, and also helps us to improve it. Some cookies are activated by default but tracking cookies aren't switched on without your consent.

    For our full policy, visit our cookies page.


    Using this tool will set a cookie on your device to remember your preferences.

    Necessary

    Necessary cookies enable core functionality of the website, including security, SRA Regulationand reCAPTCHA form verifications. It is possible to disable these cookies in your browser settings, but this could affect the functionality of the website.


    Recommended
    Off On

    Recommended cookies improve your experience of our site by helping to display our latest client reviews and embedded maps of our office locations. You can find full details on Google's privacy policy here.


    Analytics
    Off On

    We'd like to use analytics services provided by Google Analytics, Microsoft Clarity and Ruler Analytics to collect anonymous information from our visitors. The data we collect will help us to improve our website and services. Learn more about how we use these services and our commitment to safeguarding data in our Cookie Policy.

    Settings Save & Close
    020 3440 8000