UK fraud review urges judge training on crypto laundering and AI scams

A UK government-commissioned fraud review is calling for judges and magistrates to get more training on crypto-linked money laundering and AI-enabled scams. For crypto investors, the takeaway is practical: digital assets are now appearing in mainstream fraud cases, and the court system is being pushed to catch up.

The recommendation appears in “Fraud in the Digital Age”, the second report from the Independent Review of Disclosure and Fraud Offences. The review is chaired by barrister Jonathan Fisher KC and was published Tuesday by the Home Office.

The report asks the government to invite the Judicial College, which trains judges in England and Wales, to assess how all judges, including magistrates, should be prepared for more cases involving AI-enabled fraud and the laundering of money or assets through cryptocurrencies. Money laundering means trying to hide where criminal proceeds came from, often by moving funds through multiple accounts, companies or assets.

Courts face more technical fraud cases

The review says the Fraud Act 2006 remains broadly fit for cases involving AI-enabled fraud. The bigger problem, according to the report, is whether courts have the experience and systems to handle the technical evidence these cases can bring.

Fraud schemes that once required more advanced criminal networks are now easier to run, the report says. It warns that magistrates and non-specialist Crown Court centres may increasingly see cases involving artificial intelligence, international transfers and crypto assets at a scale they have not dealt with before.

The Judicial College already offers a “Long and Complex Trials” course for judges handling difficult cases, according to the review. But the report says that course is optional and can be pushed aside by competing training demands. It also says complex fraud work is concentrated among a smaller group of judges in major cities, while regional Crown Courts may have less experience and weaker infrastructure for such cases.

The review recommends that the Judicial College consider whether that training should be updated or replaced with a dedicated module on fraud and related offences. It also says the college should look at whether training should be required for judges likely to oversee complex fraud trials.

Fraud is taking a larger share of crime

The report says fraud may soon represent half of all crime in England and Wales. It estimates there were 4.1 million fraud offences in the year to June 2025, affecting one in 14 adults and one in four businesses.

Crypto and AI both feature in the review’s warning. The Financial Ombudsman Service estimates that more than half of investment scams now involve crypto-assets, according to the report. Separately, an Ada Lovelace Institute survey found that 58% of respondents had encountered AI-enabled financial fraud.

Enforcement remains thin compared with the scale of the problem, according to the review. It found that only 13% of fraud outcomes result in a charge or summons, equal to about one in every 54 reports.

The report also points to the case of convicted fraudster Qian Zhimin as an example of the complexity now reaching UK courts. That case led to the country’s largest crypto seizure, involving more than 61,000 BTC, according to the review.

This story draws on original reporting from Decrypt.