What are examples of red flags employees should watch for?

Common fraud red flags include falsified invoices, unexplained transactions, unusual supplier relationships, and resistance to oversight or audits. Employees should promptly report any suspicious activity to their line manager or compliance team.

How can organisations defend themselves under the FTPF law?

Organisations can defend themselves by demonstrating that they had reasonable prevention procedures in place. This includes maintaining anti-fraud policies, providing employee training, monitoring financial activity, and establishing a confidential whistleblowing process.

How does this microlesson help employees comply with the law?

This microlesson teaches employees how to recognise fraudulent activity, understand their legal responsibilities, and take proactive steps to protect both themselves and the organisation from legal and reputational risk.

Failure to Prevent Fraud (FTPF)

Understanding the Failure to Prevent Fraud Law

The UK’s Failure to Prevent Fraud (FTPF) law makes it a criminal offence for organisations to fail to prevent fraud committed by employees or associates for the company’s benefit. This microlesson helps employees understand how FTPF applies to their role, why there is no such thing as “small fraud,” and how every individual’s actions contribute to the organisation’s legal exposure. By learning to recognise red flags, follow reporting procedures, and uphold integrity, teams help maintain a culture of compliance, accountability, and trust.

Microlesson Description

This essential microlesson provides an overview of the UK’s new Failure to Prevent Fraud (FTPF) law and explains how a company can be held criminally liable if an employee commits fraud. It reinforces that every employee plays a crucial role in preventing fraud and that the company’s only defence is to have adequate preventative procedures in place. Learners will understand their personal responsibility in maintaining integrity and protecting the organisation from legal, financial, and reputational risk.

Key Concepts

Understand how the UK’s Failure to Prevent Fraud (FTPF) law holds organisations criminally liable for failing to prevent fraud by employees or associates
Recognise that there is no “small fraud” — any act of dishonesty can expose the organisation to prosecution
Learn how adequate preventative procedures serve as the company’s primary legal defence
Identify common fraud risks, understand personal accountability, and know how and when to report concerns

Microlesson Features

Employee sentiment pulsing questions that provide leaders with insights into their workforce's core cultural competencies
Emtrain's Expert Answers tool, enabling employeees to submit anonymous questions about sensitive issues.

Rich, contemporary video scences illustrating key concepts through realistic scenarios
A data driven, skill-based approach to eLearning that establishes a shared language for employees.

How to Use this Lesson

Each Emtrain microlesson blends real-world video scenarios, interactive surveys, and expert insights to build stronger workplace skills. Learners gain practical actions they can apply right away, while HR leaders see measurable insights into team behaviors. And with every training plan, you get access to all 90+ microlessons across communication, inclusion, compliance, and leadership.

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Learn through real-world examples and instructional content that highlight the do’s and don’ts of workplace interactions. Employees explore key concepts, see how different situations play out, and discover practical ways to build stronger, more respectful connections.

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Go beyond training with Emtrain Intelligence. Embedded surveys capture employee experiences and provide benchmarks so you can understand how your team compares to global peers.

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Apply It - Take Action

Turn insights into action with clear steps for improving workplace habits. Learners walk away with practical guidance to apply immediately, while HR leaders gain data to support ongoing culture improvements.

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Frequently Asked Questions

Below are answers to common questions that employees and managers have about this topic. These FAQs provide a preview of what you’ll learn in this microlesson and why it matters.

What is the Failure to Prevent Fraud (FTPF) law?

The FTPF law is a UK regulation that makes organisations criminally liable if they fail to prevent fraud committed by employees, agents, or associates. It emphasises corporate accountability and the need for effective anti-fraud procedures.

Who can be held responsible under the FTPF law?

An organisation can be prosecuted if an employee or associated person commits fraud for the organisation’s benefit and the company did not have reasonable prevention procedures in place. Individual employees may also face disciplinary or legal action for personal misconduct.

What are 'reasonable procedures' under the FTPF law?

Reasonable procedures are practical steps an organisation takes to prevent fraud, such as staff training, risk assessments, and clear reporting channels. These measures must be proportionate to the organisation’s size, structure, and exposure to risk.

What types of fraud does the FTPF law cover?

The law covers all forms of fraud committed by employees or agents for organisational benefit, including false accounting, misrepresentation, and bribery-related deception. The scope extends to both public and private sector entities.

Why is employee awareness important in preventing fraud?

Employees are often the first to notice unusual patterns or red flags. Awareness enables early identification of potential fraud, allowing the organisation to take corrective action before significant harm occurs.

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Failure to Prevent Fraud (FTPF)