Fraud Recovery, Defence and Diversion: A UK Guide
What a fraud solicitor actually does day to day
Fraud work splits into three broad streams, and the solicitor you need depends entirely on which side of the line you sit. Recovery work acts for the victim — a company hit by invoice fraud, a pensioner who transferred savings to a fake investment platform, a council defrauded by a contractor. Defence work acts for the person under investigation by the Serious Fraud Office, the police or a bank's internal team. Diversion fraud sits awkwardly between the two: money or goods have been diverted from their proper destination, and the question is whether anyone will be prosecuted or whether the matter settles through civil action.
A good fraud lawyer will tell you at the first meeting which stream your problem falls into, because the tactics diverge sharply. Recovery means freezing orders, Norwich Pharmacal applications to force banks and platforms to disclose account details, and sometimes urgent injunctions filed within 48 hours of discovering the loss. Defence means managing interviews under caution, disclosure obligations and the very real risk that a client talks themselves into charges during an informal conversation with their employer's compliance team.
Why speed matters more than the hourly rate
In recovery claims, the money moves fast. Once funds leave a UK account for an overseas one, the practical recovery rate drops sharply — solicitors who specialise in this area will often pursue a bank's failure to apply Confirmation of Payee checks as a secondary claim, which can recover a portion even when the fraudster is untraceable. The instruction to send a letter before claim and a subject access request often goes out the same day. Waiting a fortnight to compare quotes can cost more than the difference in fees.
Fraud defence works the other way. There is usually time to prepare, and rushing to instruct the first firm that answers the phone is a mistake. A solicitor experienced in diversion fraud — where, say, a logistics manager routes deliveries to a related company — needs to understand both the criminal exposure and the parallel civil claim the employer may bring. Firms in Birmingham and Manchester have built substantial practices here because the Crown Prosecution Service and regional police units handle a high volume of these cases.
How much fraud litigation costs in practice
Hourly rates for fraud specialists outside London typically run from £180 to £300 plus VAT for a senior solicitor, and £350 or more in the City. That figure is less useful than it looks, because most fraud matters are priced in stages. An initial assessment and letter before claim might cost £500 to £1,500. A freezing injunction, including the court application and the undertaking in damages, commonly lands between £5,000 and £15,000 depending on urgency and how many banks are involved.
For smaller losses — the £3,000 lost to a clone firm, the £8,000 paid to a rogue builder — fixed fees are increasingly common, and some firms will quote a percentage of sums recovered. Check whether that percentage is of the gross recovery or net of costs, and whether it applies if the matter settles before proceedings are issued. Legal expenses insurance attached to home or commercial policies sometimes covers fraud disputes; it is worth checking before assuming you must fund the claim yourself.
Defence costs are harder to estimate. A police interview under caution with a prepared statement might be handled for £1,000 to £2,500. A contested Crown Court trial funded privately can run into tens of thousands. If you are questioned under caution, you are entitled to free legal advice at the police station, and using it is almost always sensible.
Finding the right firm without wasting a fortnight
Directory searches throw up dozens of names, and the temptation is to ring three and pick the cheapest. A better filter is to ask one direct question: how many fraud matters of this exact type have you concluded in the last two years, and what were the outcomes? A firm that handles conveyancing and wills alongside general litigation will take a straightforward unpaid-invoice fraud but should refer out anything involving cryptoassets, cross-border transfers or a regulated entity.
Geography matters less than it once did, but not zero. Court hearings, police station attendance and client meetings still pull people towards local firms — which is why searches for fraud lawyers in Birmingham or litigation solicitors in Surrey remain common. For remote work, ask how documents are shared, who actually handles the file day to day, and whether a partner or a paralegal will be your point of contact. That last question matters more than the firm's letterhead.
Should you instruct more than one firm?
Clients often ask whether they can have two firms of solicitors running at once. You can, and sometimes should — a specialist fraud practice for the recovery claim and a separate firm for, say, an employment dispute arising from the same events. But be careful about conflicts. If both firms need to review the same documents or correspond with the same bank, costs double for no benefit. Tell each firm who else is instructed and why, and ask them to agree a division of work in writing. Instructing a second firm in the same matter without telling the first is a reliable way to generate duplicate fees and muddled advice.
Practical first steps after discovering a fraud
Report to Action Fraud and keep the reference number; insurers and banks routinely ask for it. Notify your bank immediately and put the notification in writing, asking them to attempt a recall under the UK's reimbursement rules for authorised push payment scams. Preserve everything — emails, chat logs, bank statements, the original invoice — and stop discussing the matter on the phone with anyone connected to it.
Then gather a short chronology before you approach a solicitor. Two pages covering what happened, when, how much was lost and who was involved saves an hour of billed time and often reveals where the money went. If a suspect is known and the sum is significant, ask about a freezing injunction early; the window for effective action is measured in days, not months.