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NLJ this week: Fraud claims climb as courts brace for AI threats

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Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes

Banking and finance remain the most fraud-hit sector, with the Supreme Court’s Bilta ruling widening the scope for third-party liability in fraudulent trading.

International parties still flock to London, attracted by its robust process and remedies, though rival jurisdictions like Singapore and Dubai loom large.

Looking ahead, the new ‘failure to prevent fraud’ offence under the Economic Crime Act 2023 will force big companies to tighten controls—or face liability. Meanwhile, AI and deepfake scams are already inflicting multimillion-pound losses, as shown by a £20m Hong Kong fraud at Arup. Mercer and Gillam warn that insolvency spikes could fuel yet more fraud litigation in the years ahead.

MOVERS & SHAKERS

mfg Solicitors—Deborah Bufton

mfg Solicitors—Deborah Bufton

Law firm boosts residential property team with new associate appointment

Flint Bishop—Russell Bainbridge

Flint Bishop—Russell Bainbridge

Flint Bishop lands corporate partner from Knights amid Sheffield growth drive

Bird & Bird—Huw Edwards

Bird & Bird—Huw Edwards

Bird Bird appoints expert tech patent litigator as new partner in London

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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