Fraud is a threat to national security (see RUSI paper Jan 2021 _The Silent Threat – The Impact of Fraud on National Security_).
Suggestion to reduce the problem of fraud:
Enhance the civil remedy available in the courts against fraud. An amendment of the Fraud Act 2006 could introduce a statutory requirement for exemplary (punitive) damages even when no general damages are awardable.
Fraud is attractive to organised criminals due to the lack of statutory civil consequences. A number of solicitors might find civil enforcement of the proposed amendment sufficient to support future employment. The private sector may relieve the CPS of the burden of some criminal fraud prosecutions in this way.
Suggested legislative drafting below may need improvement (non-professional drafting)
Add the following to the Fraud Act 2006 (NEW: Schedule 4, it may be added by an additional subsection at section 14 Fraud Act 2006)
Schedule 4: Enhanced civil remedies for breach of sections 2 – 4 Fraud Act 2006.
1. A person or corporation that is the victim of a breach of sections 2 – 4 Fraud Act 2006 may bring a claim for exemplary (punitive) damages in the civil courts regardless of monetary loss.
2. Exemplary (punitive) damages are payable on a breach of sections 2 – 4 Fraud Act 2006 as follows:
(a) at least equal to the value of the attempted or actual gains or losses (individual in breach) OR
(b) equal to ten times the value of the attempted or actual gains or losses (corporation in breach)
and
(c) at least equal to the value of the consequential losses (individual in breach) OR
(d) equal to ten times the value of the consequential losses (corporation in breach).
3. Exemplary (punitive) damages are payable in this Schedule even when no general damages are payable.
4. This Schedule may have retroactive effect for undecided cases brought before the civil courts and cases where litigation has not commenced (subject to the Limitations Act 1980).
—End of Schedule 4—
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