“Is there any hope?” was one of the questions that followed a panel discussion at the Offshore Alert event in London on how to navigate a world where fraud and financial crime involve ever larger sums and higher stakes.

The answer? There somehow has to be, but we need to develop the right expertise to tackle increasingly sophisticated techniques.

A 2025 APPG report estimated that the British economy lost £350 billion ($462 billion) annually via corruption, fraud, tax evasion, and other types of financial crime. To put it into perspective, this amounts to 17.5% of GDP, or the annual health and education budgets combined.

The report was the launching point for a discussion between Charles Bott KC, Head of Advocacy at MKS Law, and Rachel Blake, MP for the Cities of London and Westminster, moderated by GRIP’s Jean Hurley.

The figures are alarming. The cost to businesses is £158 billion per year ($209 billion), with some 64% of UK businesses victims of fraud, significantly higher than the global average of 46%. The public sector meanwhile loses £50 billion ($66 billion).

Kicking off, Bott said we are living in unusually turbulent times, with a massive presence of complex fraud problems which are “out of control” and no real solutions. Forty years ago, serious fraud was anything involving a sum over £1m ($1.3m) but now the numbers involved are in the billions.

Developing specialisms

The old fashioned form of fraud was limited and geographically contained. He argued that the traditional methods of detection are being dismantled by technology. “Crypto changes everything,” Bott said. Now there are endless options to commit fraud. “We’re only scratching the surface with the techniques we’re using now,” he added.

David Marchant, Offshore Alert’s founder, called crypto a “nefarious industry nobody understands.”

“Specialist knowledge is the key,” Bott said, when asked about the need to categorize different types of fraud, certainly in any cases involving crypto.

For barristers, fraud typically fell under the umbrella of criminal cases. The complexity of modern fraud cases means specialized niches need to be developed. Lawyers and police officers fighting financial crime should be educated in financial services.

Effective fraud investigation control will only work if you have specialists who know what they’re doing. That means specialist police officers and potentially the formation of an Economic Crime Fighting Fund, as recommended in the report Blake noted.

Panelists agreed that degrees or apprenticeship programs that educate students on fraud detection, investigation, and asset tracing need to be developed. Otherwise those handling the cases would rely on clichés and the “compliance dance.”

Human and business cost

Blake grounded these high-level figures in the reality of her constituency. She highlighted that half of the properties where “dirty money” is used in ownership fall within the Cities of London and Westminster, directly exacerbating the housing crisis. Figures quoted in the report state that economic crime has added at least 5% to the housing market.

Beyond housing, the burden on business is immense: 64% of businesses feel the impact of economic crime. Regulated firms are spending up £21,000 ($28,000) an hour fighting economic crime.

Blake emphasized that economic crime is often the “linchpin” for other societal harms including modern slavery and gang violence, necessitating a “clean finance” strategy goes beyond simple compliance.

Impact of US deregulation on UK competitiveness

The panel addressed the growing friction caused by the significant deregulation of financial enforcement in the US, a shift Bott described as a “truly alarming development.” He warned that apparent suspension of the Foreign Corrupt Practices Act (FCPA) and the roll back of the Corporate Transparency Act in the US have destroyed the “level playing field,” leaving highly regulated UK companies at a distinct advantage against US competitors who are no longer held to the same rigorous standards.

He cautioned that this divergence threatens the shared values essential for extradition and international cooperation.

Conversely, Blake viewed this geopolitical shift as a differentiator for the UK. Whilst acknowledging the immediate commercial challenges for British firms, Blake contended that by positioning itself as a “clean” and stable jurisdiction, the UK could attract long-term, legitimate investment from those seeking security rather that the volatility associated with “dirty money.”

Consensus: a crisis of competence

The panel’s most forward-looking segment focused on the inability of current law enforcement and legal frameworks to keep pace with sophisticated criminals. The consensus was clear: the UK lacks a dedicated pipeline of skilled investigators.

Bott argued that we cannot expect police officers trained in general street crime to suddenly adapt to complex international financial fraud. He proposed a radical shift in how the UK educates its crime fighters: the creation of specific courses designed to breed a new generation of fraud investigators.

Currently, the industry relies on a “compliance dance,” a tick box exercise that often fails to spot the red flags. Real investigation requires deep, interdisciplinary knowledge that isn’t taught in standard law or policing curriculums.

Blake enthusiastically backed this concept, noting that recent budget provisions for apprenticeships could provide a vehicle for this training. She suggested a collaboration to create a “Level 7 apprenticeship” in law or investigation, specifically tailored to closing this skills gap.

Role of private sector

Until such educational reforms take root, the Bott suggested that the private sector must shoulder a heavier load. With the Serious Fraud Office (SFO) and the National Crime Agency (NCA) facing resource constraints and case backlogs, the state is arguably “scratching the surface”, recovering perhaps £250m ($330m) per year against billions in losses.

The panel discussed several mechanisms to use private expertise:

• Private prosecutions: filling the vacuum left by overwhelmed state agencies.
• Civil asset recovery: using civil courts to recover stolen funds, which is often faster and more effective than criminal routes.
• Incentivization: Bott argues those who successfully recover assets (the private sector) should have a “greater stake in the outcome.” Blake added the creation of an Economic Crime Fighting Fund would incentivize ambitious asset recovery.

Cautious optimism

The message from Offshore Alert London 2025 was not of hopelessness but one of cautious optimism tempered by urgent reality. While the “Clean Finance” strategy and potential “Economic Crime fighting Fund” are positive steps, legislation alone cannot stop the flow of dirty money. As Bott and Blake highlighted, the long-term solution lies in education.