What Is Fraud Prevention?

Fraud prevention is the creation and implementation of controls and measures to deter and minimise the opportunity for fraudulent activity within an organisation. It can involve monitoring systems, internal checks, or using technology such as AI to detect unusual activity. These measures reduce the likelihood of fraud, although it’s hard to eliminate it completely.

At Helix Law, we don’t design prevention systems. Our role begins when fraud is suspected or uncovered, and urgent legal steps are required to protect the business. Our commercial litigation team are often instructed at a point when some form of fraud has been encountered and uncovered. This can include what might amount to criminal conduct, but that takes time and fundamentally doesn’t result in the recovery of money, property or other assets- whereas our instructions seek to achieve precisely these outcomes. If you are in business and are facing a potentially fraudulent situation, don’t hesitate to seek early advice from our specialist team and we will be happy to assist you.

Understanding Fraud in Business

Fraud often comes to light after the damage has already been done, and recognising how it can arise helps explain where urgent legal steps may be required. 

Many organisations share common risks like payroll and personal data. However, there are always elements that are specific to individual organisations.

Fraud can be falsifying documents, diverting company assets for personal benefit, misrepresentation, or theft. It can also be internal, such as an insider offence, or an external risk, like cybercrime. Fraud is not necessarily a director-level offence; it can be committed by shareholders, employees, or originate from third parties outside the business. 

Fraud Scenarios Helix Handles

Fraud can take many forms. There are many ways to gain financial advantage in a business context, and potential threats come from diverse directions. 

We handle cases of employee theft or misappropriation of money or tangible assets. We also deal with shareholder and director misconduct, which can involve diverting contracts to a rival business, moving company property or shares without consent, or misusing company assets for personal gain.

Other malpractices connected to fraud include forging documents and covert transfers of company funds. 

Bribery involves a company employee or officer accepting reward to alter business decisions. We also manage scenarios in which trade secrets have been disclosed without permission for financial gain.

Immediate Legal Action Is Critical

Any suspicion of fraud should be a red flag to those in charge of a company. Swift action prevents further financial losses and offers a window to preserve evidence,which is vital in any subsequent legal action for recovery.

Helix Law can take different steps to help mitigate loss, gather evidence, and minimise reputational damage.

We can use:

• A freezing order, which is a court order/injunction that stops a party from dealing with or disposing of specific assets. It may be applied for immediately, prior to any court proceedings to protect the company’s position.
• Disclosure orders which compel parties to produce documents and evidence relevant to the suspected fraud; these may be used later in legal proceedings. A disclosure order can authorise law enforcement agencies to collect information if there is also a criminal investigation.
• Search orders to seize and protect evidence. A search order allows solicitors to enter business premises to gather and retain information and items that may otherwise be destroyed ahead of any investigation. Search orders have the element of surprise as there is no requirement to serve notice. Because of their draconian nature, the court will typically require the involvement of specialist, independent solicitors who supervise the search to balance the interests of the other party. Search orders are most common in cases of civil fraud.
• Orders for the delivery up or preservation of document and imaging orders which are an alternative to search orders. It can be an effective strategy to combine a search order and imaging order. Changes to the Civil Procedure Rules (CPR) on 6 April 2025, have provided a new model combining search and imaging orders.
• Civil recovery proceedings to reclaim losses incurred due to fraudulent conduct. Under the Proceeds of Crime Act 2002 (POCA), law enforcement agencies can also recover assets obtained through unlawful conduct without a criminal conviction.

With all these measures, time is of the essence to protect assets, information, and potential evidence.

First Steps if You Suspect Fraud

1. Speak to a specialist firm like Helix Law. We can advise of the right steps to take which will preserve evidence and minimise any further losses and reputational damage.
2. Notify any relevant regulatory or enforcement agencies; this depends on the type of fraud suspected. Your legal team will advise on this. Bear in mind that reporting fraud is a legal requirement.
3. Start gathering evidence by creating a timeline of events and compiling digital records. It’s vital that this is recorded without alerting anyone within the company to your suspicions.

Frequently Asked Questions

What Are Common Types of Business Fraud?

Common types of business fraud include theft, misappropriation of assets, and payroll fraud, which can be at director level or perpetrated by an employee. Threats and risks external to the company are increasingly serious and include cybercrimes like phishing, ransomware, and malware.

Why Choose Helix Law?

Fraud can be devastating for any company, and the impact is often sudden and unexpected. Small and medium-sized businesses can struggle to recover from the financial damage and reputational fallout. 

We are the largest specialist litigation team in the South East of England. Our commercial litigation team are recognised and ranked in the top 2% of lawyers globally in this area of work.

If you believe fraud has already taken place within your organisation, it’s vital to take expert legal advice. Acting quickly allows us to secure injunctions, preserve evidence, and begin recovery proceedings. Get in touch with Helix Law now for a comprehensive service that offers strategic support and representation.