Fraud & Asset Recovery

Trends and insights 2026

Insolvency-driven claims on the rise

Economic turbulence continues, with UK corporate insolvencies up 14% year on year, reaching their highest level in 30 years (Insolvency Service). Over 17,000 companies failed in 2024, and 40% of UK businesses report financial distress (Begbies Traynor).

Against this backdrop, we expect a further surge in fraud, asset dissipation, and recovery claims in 2026. Insolvency practitioners are already identifying a 32% increase in suspected fraud during administrations (R3).

Why it matters
What to do now
There is a heightened risk of being drawn into complex, multi-jurisdictional disputes as distressed businesses under pressure seek to move assets.
  • Review internal controls and governance.
  • Engage early with insolvency practitioners and legal advisers.
  • Be prepared to seek urgent interim relief from the court to secure assets.

Increased scrutiny of directors

Claims for misfeasance and misappropriation remain high, driven by shareholder actions and post-M&A disputes. In 2024-25, 42% of UK companies reported governance or director-conduct concerns (IoD), while director and officer (D&O) premiums rose 10-15% due to increased claims (AON). Nearly one in five administrators cite director misconduct as a contributing factor in company failure.

Why it matters
What to do now
Directors face real exposure to personal liability and reputational harm.
  • Strengthen documentation of decision-making.
  • Review and update D&O insurance coverage.
  • Seek early legal advice where disputes begin to emerge.

AI-enabled fraud accelerates

AI-driven and identity-based fraud is rising rapidly: AI-enabled fraud increased 52% in 2024 (KPMG), and one in three UK businesses faced deepfake or synthetic-identity attempts last year (PwC). Europol reports a 300% surge in deepfake related incidents.

AI is also reshaping litigation processes, allowing faster more efficient work to be completed.

Why it matters
What to do now
AI increases both the speed and scale of fraud, making it harder for organisations to detect and contain risks without updated systems.
  • Invest in advanced verification and fraud-detection tools.
  • Update internal policies for AI-related risks.
  • Train staff to identify and escalate suspicious activity.

Disputes become more international

Purely domestic fraud claims are increasingly rare. More than 70% of high-value commercial fraud cases in the English courts now involve foreign jurisdictions (Commercial Court Users Group). English courts handled over £3bn in disputed cross-border assets in 2024-25.

Farrer & Co remains very well placed to advise on multi-jurisdictional strategy and coordinate teams of overseas lawyers, investigators and intermediaries.

Why it matters
What to do now
Cross-border disputes require early analysis of jurisdiction, enforcement, and strategic pressure points.
  • Map international exposure early.
  • Build trusted relationships with overseas advisers.
  • Use English courts effectively, including for urgent interim relief.

Crypto litigation remains active

Global crypto-related losses exceeded US$1.7bn in 2024 (Chainalysis). English courts remain a leading forum: 40% of crypto fraud victims now seek remedies through the UK, and courts issued more than 60 digital asset injunctions in 2024-25 (CMS Crypto Disputes Report 2025).

Why it matters
What to do now
Both individuals and businesses face elevated risk in a volatile and often under-regulated market.
  • Monitor crypto counterparties and exposures.
  • Act quickly to preserve evidence and secure assets.
  • Leverage English legal disclosure and proprietary remedies.

Urgent interim relief continues to dominate

England remains an attractive disputes forum due to its readiness to grant urgent relief. Applications for worldwide freezing orders (WFOs) increased 22% in 2024, with around 70% granted in full or part where dissipation fears were evidenced.

Recent appellate court clarification has also eased the threshold for obtaining WFOs, reinforcing their strategic value.

Why it matters
What to do now
Speed is often decisive when protecting assets or shaping early litigation strategy.
  • Be ready to act at short notice.
  • Prepare evidence proactively.
  • Consider freezing and proprietary injunctions in England as core strategic tools.

Conclusion

2026 will be a dynamic year for disputes. By anticipating these trends and preparing early, clients can better manage risk and seize opportunities.

Jolyon Connell

Web profile

Gerard Heyes

Web profile

Fraud & Asset Recovery

Our team of fraud and insolvency lawyers has market-leading experience in complex high profile, high value and cross-border matters. We have advised clients in some of the biggest international fraud cases in the Commercial Court in recent years.

We are on hand to provide urgent assistance for all fraud and asset-recovery processes.

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