Fraud Offences UK: Fraud Act 2006, Penalties and Reporting

Fraud is a crime of dishonesty: in England, Wales and Northern Ireland, the Fraud Act 2006 makes it an offence to dishonestly make a false representation, fail to disclose information or abuse a position of trust, intending to make a gain or cause a loss, with a maximum of 10 years in prison. The Act does not apply in Scotland, which prosecutes fraud as a common-law crime. This page explains the offence, the related offences that sit around it, the newer corporate offences, sentencing, and where to report.

What counts as fraud under the Fraud Act 2006

Section 1 of the Fraud Act 2006 creates a single offence of fraud. A person is guilty if they breach any one of sections 2, 3 or 4, which describe three different ways of committing it. The Act came into force on 15 January 2007, according to the CPS legal guidance on the Fraud Act.

Every route shares two features. The conduct must be dishonest, and the person must intend to make a gain for themselves or someone else, or to cause a loss to another or expose them to a risk of loss.

Fraud by false representation (section 2)

This is the most common form. A representation can be about fact or law, or about someone's state of mind, such as a promise you never meant to keep. It can be express or implied, so conduct can carry a representation as well as words.

A representation does not need a human audience. Section 2(5) treats it as made if it is submitted to any system or device designed to receive or respond to communications, which covers online forms, payment systems and automated phone lines.

Fraud by failing to disclose information (section 3)

Section 3 applies only where there is a legal duty to disclose. Staying silent is not fraud just because the information would have been useful to the other person; the duty has to exist in law.

Fraud by abuse of position (section 4)

Section 4 covers people trusted with someone else's finances. The Act does not list every relationship, but the test is whether the person occupies a position in which they are expected to safeguard, or not act against, another person's financial interests. Section 4(2) says the abuse can be an omission as well as an act.

Gain and loss: no loss needs to happen

Section 5 limits gain and loss to money or other property, whether temporary or permanent. Gain includes keeping what you already have, and loss includes not getting what you might have got.

Because the offence turns on intention, it is complete even if the plan fails or nobody is out of pocket. The amount lost or intended to be lost becomes important later, at sentencing.

Dishonesty

The Act does not define dishonesty. According to the CPS guidance, courts apply the two-stage test from Ivey v Genting Casinos, confirmed for criminal cases in R v Barton and Booth (2020), which replaced the older Ghosh test.

Maximum sentences

Fraud under section 1 is triable either way, meaning it can be heard in the magistrates' court or the Crown Court. The table shows the statutory maxima for the main Fraud Act offences.

Since 7 February 2023 (SI 2023/149) the Act refers to the general limit in a magistrates' court. For offences triable either way that limit has been 12 months since 18 November 2024 (SI 2024/1067); it was 6 months between 30 March 2023 and 18 November 2024 (SI 2023/298), so older sources that say 6 months may reflect that period. 6 months is still correct for Northern Ireland under section 1(4).

The other Fraud Act offences in brief

Section 6 covers having any article for use in the course of or in connection with any fraud.

Section 7 covers making, adapting, supplying or offering to supply an article knowing it is designed or adapted for fraud, or intending it to be used to commit or assist fraud.

Section 11 covers obtaining services by a dishonest act without paying, or paying in full, where the services are only provided on the basis that payment will be made. It sits alongside the theft offences discussed on our theft and shoplifting page.

Related offences

Fraud is often charged alongside, or instead of, these offences. Each has its own maximum.

False accounting means dishonestly falsifying, or using misleading, accounting records with a view to gain or intent to cause loss. Blackmail means making an unwarranted demand with menaces with a view to gain or intent to cause loss. It is a Theft Act offence, not a Fraud Act one.

Money laundering covers concealing, arranging or acquiring the proceeds of crime, which is why it often follows a fraud charge. Section 334 of the Proceeds of Crime Act still says six months on summary conviction, but in England and Wales section 282 of the Criminal Justice Act 2003 reads that as the general limit in a magistrates' court (currently 12 months) for offences committed on or after 2 May 2022. In Northern Ireland the summary maximum is 6 months.

Fraud by companies and organisations

Two newer rules decide when an organisation, rather than just the individuals involved, can be convicted.

Failure to prevent fraud (in force since 1 September 2025)

Under section 199 of the Economic Crime and Corporate Transparency Act 2023, a large organisation is guilty of an offence if an associated person commits a listed fraud offence intending to benefit the organisation (or, in some cases, its clients). The section came fully into force on 1 September 2025.

An associated person is an employee, agent or subsidiary undertaking of the organisation, or anyone else who performs services for or on its behalf. Where the fraud was meant to benefit a client rather than the organisation, the organisation is not guilty if it was itself a victim, or an intended victim, of that fraud.

Who it applies to. A body corporate or partnership, wherever incorporated or formed, is a large organisation under section 201 if it met two or more of these conditions in the previous financial year: turnover over £36 million, balance sheet total over £18 million, and more than 250 employees. For a parent company, section 202 applies the same test to the group's aggregate figures.

The defence. Section 199(4) gives the organisation a defence if it proves that it had prevention procedures that were reasonable in all the circumstances, or that it was not reasonable to expect it to have any.

The penalty is a fine, unlimited except on summary conviction in Scotland or Northern Ireland, where it is capped at the statutory maximum. The offence is corporate only: the employee or agent who committed the underlying fraud is still prosecuted for that fraud.

The listed fraud offences in Schedule 13 include fraud under the Fraud Act 2006, false accounting, cheating the public revenue, the Northern Ireland Theft Act equivalents, and, for Scotland, the common-law crimes of fraud, uttering and embezzlement.

Senior managers: the identification rule (since 29 June 2026)

Since 29 June 2026, section 250 of the Crime and Policing Act 2026 provides that where a senior manager of a body corporate or partnership, acting within the actual or apparent scope of their authority, commits an offence under the law of England and Wales, Scotland or Northern Ireland, the organisation also commits that offence.

A senior manager is someone who plays a significant role in making decisions about how the whole or a substantial part of the organisation's activities are managed or organised, or in actually managing or organising them. There is a limited exception: the organisation is not liable where all of the conduct happens outside the UK and the organisation would not have committed the offence had the conduct been its own.

Section 250 replaced sections 196 to 198 of the Economic Crime and Corporate Transparency Act 2023. The old section 196 applied the same idea only to economic crimes. Guidance written before June 2026 that describes the rule as limited to economic crime is now out of date.

How fraud is sentenced in England and Wales

Courts in England and Wales must follow, unless it would be contrary to the interests of justice, the Sentencing Council's fraud guideline, which covers fraud under the Fraud Act, conspiracy to defraud and, in a separate table, false accounting. The guideline has been effective since 1 October 2014; the page showed it was last updated on 5 October 2026. It applies to adult offenders.

The court first places the offence in a culpability category and a harm category.

Culpability is high (A), medium (B) or lesser (C). High culpability factors include a leading role, abuse of a position of trust, sophisticated or significant planning, fraud over a sustained period, a large number of victims, and deliberately targeting vulnerable victims. Lesser culpability factors include involvement through coercion or intimidation, a peripheral role, an opportunistic one-off offence, and not being motivated by personal gain.

Harm is measured mainly by the loss caused or intended:

The court then considers the impact on the victim. High impact moves the case up a category (or up the range within category 1), and medium impact moves it up within the category range.

The guideline's starting points for fraud (Table 1, maximum 10 years) are:

These starting points apply before any reduction for a guilty plea, which the court applies at a later step. The court also adjusts for aggravating and mitigating factors, assistance to the prosecution and totality, and then considers confiscation, compensation and other orders.

Fraud can be sent to the Crown Court or kept in the magistrates' court depending on its seriousness; see magistrates' court vs Crown Court.

Confiscation and compensation

After a conviction in England and Wales, the court can make a confiscation order under section 6 of the Proceeds of Crime Act 2002. The court decides whether the defendant has a criminal lifestyle and has benefited from their general criminal conduct, or has benefited from the particular criminal conduct, then sets a recoverable amount. Section 6 is an England and Wales provision; Part 3 of the Act (section 92) provides for confiscation in Scotland and Part 4 (section 156) in Northern Ireland.

A court can also order the offender to pay compensation for loss or damage resulting from the offence under section 133 of the Sentencing Act 2020. The fraud guideline tells the court to consider confiscation, compensation and ancillary orders at step 6, after any guilty plea reduction and totality.

Who investigates and prosecutes fraud

In England and Wales, most fraud is investigated by the police and prosecuted by the Crown Prosecution Service. The Serious Fraud Office, constituted for England and Wales and Northern Ireland by the Criminal Justice Act 1987, can investigate any suspected offence that appears on reasonable grounds to involve serious or complex fraud.

In Northern Ireland, the Public Prosecution Service is the principal prosecuting authority and decides cases investigated by the PSNI and by other statutory authorities such as HM Revenue and Customs. In Scotland, the Crown Office and Procurator Fiscal Service is the prosecution service.

How to report fraud

England, Wales and Northern Ireland. Action Fraud no longer exists. From 4 December 2025, City of London Police launched Report Fraud, which replaced Action Fraud as the national platform for reporting fraud and cyber crime. Report online at reportfraud.police.uk or call 0300 123 2040, the same number as before.

Northern Ireland. nidirect says to report directly to Report Fraud unless you need a call for service from the PSNI. A call for service on 101 is for fraud happening now or within the last 24 hours, where the suspect is known and lives in Northern Ireland, where the victim is vulnerable, or where reporting to police is important so they can secure evidence or prevent loss, such as recovering money before it is moved.

Scotland. Report Fraud covers England, Wales and Northern Ireland. In Scotland, report crime, including online crime, to Police Scotland on 101, or 999 in an emergency, as mygov.scot sets out.

If you or someone else is in immediate danger, call 999 anywhere in the UK.

Getting money back

A criminal case is not the main route to a refund. If you paid by card, a section 75 claim against a credit card provider or a chargeback through your bank may be faster, so contact your bank as soon as you notice. A compensation order after a conviction is possible but depends on the prosecution succeeding and the offender being able to pay.

Fraud in Scotland

The Fraud Act 2006 does not extend to Scotland: section 15 says its offence sections extend to England and Wales and Northern Ireland only. Fraud, uttering and embezzlement are common-law crimes in Scotland, which is why Schedule 13 to the Economic Crime and Corporate Transparency Act 2023 lists them separately for Scotland.

Because these are common-law crimes, their definitions come from case law rather than a statute, and the Fraud Act maxima set out above do not apply to them. This page does not cover Scottish sentencing powers.

The failure to prevent fraud offence does extend to Scotland, and section 250 of the Crime and Policing Act 2026 applies to offences under Scots law. Theft Act 1968 offences such as blackmail do not extend to Scotland.

Fraud in Northern Ireland

The Fraud Act 2006 applies in Northern Ireland with one difference: the magistrates' court maximum for fraud is 6 months rather than the general limit. The Theft Act (Northern Ireland) 1969 provides the local versions of false accounting (section 17) and blackmail (section 20). The Serious Fraud Office's remit covers Northern Ireland, and the Sentencing Council guideline does not apply there, because it is for courts in England and Wales.

If you are under investigation or charged

Anyone questioned about fraud is entitled to free legal advice at the police station, including from the duty solicitor; see being arrested and the right to remain silent. Criminal legal aid may cover court representation, depending on the case and your means: see legal aid eligibility.

Fraud investigations can take a long time, and suspects are sometimes released under investigation for months. A fraud conviction is a dishonesty offence, which matters for employment checks: see spent convictions and DBS checks. For other offences, see the UK criminal law hub.

Frequently Asked Questions

What is the maximum sentence for fraud in the UK?

In England, Wales and Northern Ireland, fraud under section 1 of the Fraud Act 2006 carries up to 10 years in prison on conviction in the Crown Court. In the magistrates' court the maximum is the general limit (12 months) in England and Wales, or 6 months in Northern Ireland, and a fine. Scotland has no Fraud Act offence: fraud there is a common-law crime.

Does the Fraud Act 2006 apply in Scotland?

No. Section 15 of the Act says the offence sections extend to England and Wales and Northern Ireland only. In Scotland, fraud, uttering and embezzlement are common-law crimes, and prosecution decisions are made by the Crown Office and Procurator Fiscal Service.

Is it still fraud if nobody lost any money?

Yes. Each of the three ways of committing fraud requires an intention to make a gain or cause a loss (or expose someone to a risk of loss). The Act does not require the gain or loss to actually happen. How much was lost or intended to be lost does matter at sentencing in England and Wales.

What are the three types of fraud under the Fraud Act 2006?

Fraud by false representation (section 2), fraud by failing to disclose information you are under a legal duty to disclose (section 3), and fraud by abuse of a position in which you are expected to safeguard someone else's financial interests (section 4). All three are charged as the single offence of fraud under section 1.

Is blackmail a type of fraud?

No. Blackmail is a separate offence under section 21 of the Theft Act 1968 in England and Wales, and section 20 of the Theft Act (Northern Ireland) 1969, with a maximum of 14 years in both. The Theft Act 1968 does not extend to Scotland.

What is the failure to prevent fraud offence?

It is a corporate offence in section 199 of the Economic Crime and Corporate Transparency Act 2023, in force since 1 September 2025. A large organisation commits it if an employee, agent, subsidiary or other associated person commits a listed fraud offence intending to benefit the organisation. The organisation has a defence if it had reasonable prevention procedures in place. The penalty is a fine. Individuals who commit the fraud are still prosecuted separately.

Where do I report fraud now that Action Fraud has closed?

In England, Wales and Northern Ireland, report to Report Fraud, the City of London Police service that replaced Action Fraud on 4 December 2025, at reportfraud.police.uk or on 0300 123 2040. In Northern Ireland, ask the PSNI for a call for service on 101 if the fraud is happening now or happened in the last 24 hours, the suspect is known and lives in Northern Ireland, the victim is vulnerable, or reporting to police is important so they can secure evidence or prevent loss. In Scotland, contact Police Scotland on 101. Call 999 in an emergency.

What should I do if I have been accused of fraud?

You are entitled to free legal advice at the police station, including from the duty solicitor, and you can ask for it before any interview. Criminal legal aid may cover representation in court depending on your case and means. Fraud cases often turn on documents and on dishonesty, so getting advice early matters.