AI-driven fraud, cross-border disputes and crypto claims: fraud and asset recovery insights
Insight
Farrer & Co’s disputes team anticipates risk across the full spectrum of business and private wealth litigation. Below are the key trends shaping 2026 and what clients should be doing now.
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
There is a heightened risk of being drawn into complex, multi-jurisdictional disputes as distressed businesses under pressure seek to move assets.
What to do now
- 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
Directors face real exposure to personal liability and reputational harm.
What to do now
- 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
AI increases both the speed and scale of fraud, making it harder for organisations to detect and contain risks without updated systems.
What to do now
- 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
Cross-border disputes require early analysis of jurisdiction, enforcement, and strategic pressure points.
What to do now
- 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.
Why it matters
Both individuals and businesses face elevated risk in a volatile and often under-regulated market.
What to do now
- 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
Speed is often decisive when protecting assets or shaping early litigation strategy.
What to do now
- 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. For bespoke advice or further insights, please get in touch with Jolyon Connell or your usual contact at the firm.
Significant legal developments are anticipated in 2026, amid economic turbulence, the growing influence of AI and heightened public scrutiny. To help you prepare, our experts have produced key litigation-related insights across areas including arbitration, commercial litigation, contentious trusts & estates, family disputes, and more.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, January 2026
