Victims of Fraud Series Part 1: Why Acting Fast Matters

In cases of fraud, the first 24 to 48 hours can determine whether stolen assets are recoverable or not. Fraudsters are often sophisticated, moving funds through multiple accounts, jurisdictions, or even converting them into cryptocurrency within hours. It is important to have a plan so that you understand the immediate steps you would take in the event of fraud, as delay can mean that your assets are dissipated and recovery becomes difficult.
 

Speed is Critical
 

Once fraudsters have stolen assets, they will transfer funds quickly (often offshore using shell companies) or convert assets into cryptocurrency to obscure ownership.  English courts recognise this risk and provide powerful interim remedies (freezing injunctions, including Worldwide Freezing Orders, and targeted disclosure orders, Norwich Pharmacal and Bankers Trust Orders) to preserve assets before judgment. The faster you can secure these remedies, the more effective they will be.

The key priority is to establish your strategy quickly. Specialist solicitors can advise on the best strategy depending on your circumstances, which might mean an urgent application to court, or conducting an investigation and seeking disclosure orders. 

Immediate Steps for Victims
 

If you suspect you have been a victim of fraud, consider taking the following steps immediately:

• Engage specialist solicitors - Civil fraud litigation is complex and requires rapid, strategic action.  Experienced solicitors can advise on urgent applications and coordinate asset tracing across jurisdictions, and will be able to advise you on IT experts as necessary.
   
• Notify banks and financial institutions - Contact any bank involved in the transaction without delay.  Banks can sometimes freeze suspicious transfers voluntarily or in response to a court order.  If crypto assets are involved, notify relevant exchanges - many have protocols for freezing accounts linked to fraud.
   
• Preserve evidence - Document all transactions, communications, and account details.  This evidence will underpin urgent applications to court.

Your solicitors will be able to advise you on the best legal strategy for your circumstances and will pull together a team of investigators and IT experts as necessary. Some of the key legal tools for claimants are set out below, and will be looked at in more detail later in this series.

Freezing Injunctions
 

The most powerful tool in the claimant’s arsenal is the freezing injunction. This court order restrains a defendant from disposing of or dealing with assets pending resolution of the claim. It can apply to:

• Domestic assets within England and Wales; and
• Worldwide assets where there is a sufficient connection to the jurisdiction.

As we will explore later in this series, it can be possible to obtain an injunction against a fraudster even if you don’t know their identity; these are known as applications against “persons unknown”.

Applications for freezing injunctions are often made without notice to avoid tipping off the fraudster. In return for such a draconian remedy being available without informing the respondent, full and frank disclosure to the court of facts unhelpful to your case or the grant of the injunction is mandatory. Further, a failure to act swiftly can undermine the application - courts expect urgency where there is a risk that the assets will be dissipated.

Freezing injunctions and proprietary injunctions (where the applicant claims that specific assets belong to them) also contain onerous disclosure obligations for the respondents.  As a matter of urgency, they generally have to identify all of their assets above a certain value and, in the case of a proprietary injunction, what has become of the applicant’s money.  These are powerful ancillary orders as non-compliance amounts to contempt of court and the threat of applications for the committal to prison of non-compliant respondents is highly effective.

Search and Imaging Orders
 

Search and imaging orders help to preserve evidence.  A search order compels the respondent to allow you to enter the respondent’s property to search for any evidence and preserve it. A search order is now commonly granted in conjunction with an imaging order, which compels the respondent to permit you to preserve copies of relevant electronic material on the respondent’s devices with the help of an independent computer specialist.

Norwich Pharmacal Orders (NPOs)
 

In many fraud cases, victims do not know the identity of the wrongdoer or the destination of stolen funds.  An NPO compels a third party - often a bank, crypto exchange, or service provider - who has become “mixed up” in the wrongdoing to disclose information.

NPOs are invaluable for tracing assets and identifying fraudsters. They can be combined with Bankers Trust orders for asset tracing where proprietary claims are involved.

Bankers Trust Orders (BTOs)
 

Where you have a proprietary claim to misappropriated funds, a BTO can compel a bank or similar custodian to disclose information to trace your property and preserve it.  BTOs are distinct from (though often run alongside) Norwich Pharmacal relief.

Crypto and Digital Assets
 

Dealing with crypto assets adds complexity. Transfers are near-instant and irreversible. English courts now recognise crypto assets as property, enabling proprietary injunctions and freezing orders against wallets. Where crypto assets are involved, victims should:

• Notify exchanges immediately to freeze accounts;
• Record wallet addresses and transaction hashes for tracing; and
• Consider urgent applications for disclosure orders against exchanges.

Conclusion
 

Every hour counts, as fraudsters exploit speed and anonymity. Any hesitation can allow funds to vanish through layered transactions across multiple jurisdictions. Courts expect claimants to act promptly; delay can weaken the case for interim relief and reduce your chances of recovery.

Immediate legal advice, swift applications for interim relief, and rapid engagement with banks and crypto exchanges can make all the difference for recovery.  

About the author

Laurence Clarke is a senior associate in the Dispute Resolution Team. He has been recognised as a leading associate in both commercial litigation and civil fraud in The Legal 500.