UK review urges judicial training on crypto and AI fraud

A government-commissioned review has recommended that the Judicial College train all judges and magistrates to handle cases of AI-enabled fraud and money laundering using cryptocurrencies. The report was published by the Home Office as the second report of the Independent Review of Disclosure and Fraud Offences, chaired by Jonathan Fisher KC.

The review states courts lack capacity and technical expertise to manage a likely increase in complex fraud cases. It finds the Fraud Act 2006 is broadly fit for purpose but identifies gaps in judicial training and court infrastructure.

The review asks the Judicial College to consider whether its Long and Complex Trials course should be updated or replaced with a module focused on fraud and related offences, and to consider mandatory training for judges likely to hear complex fraud trials.

The report warns that tools once restricted to sophisticated criminals are now widely accessible, meaning magistrates and non-specialist Crown Court centres will face cases involving AI-driven scams, cross-border transfers and rapid movement of funds through cryptocurrencies. Complex fraud work is concentrated among a small group of judges in major cities, leaving regional courts without enough experienced judges or the infrastructure for lengthy technical trials.

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

It cites data showing more than half of investment scams now involve crypto-assets and that 58% of respondents to one survey had encountered AI-enabled financial fraud.

Enforcement outcomes remain low: only about 13% of fraud reports led to a charge or summons, roughly one in 54 reports, the review found.

The review uses the prosecution of Qian Zhimin as an example of the technical and international issues courts face. Qian pleaded guilty to acquiring and possessing criminal property in the form of Bitcoin after running a Ponzi scheme that defrauded more than 128,000 victims. She was sentenced in November to 11 years and eight months at Southwark Crown Court under the Proceeds of Crime Act 2002. The case produced the UK’s largest confirmed Bitcoin seizure, more than 61,000 BTC, and the fate of those funds remains subject to legal disputes among victims, the UK government and foreign authorities.

Jonathan Fisher KC wrote, “in light of the volume of fraud cases, it would be valuable for the wider judiciary to have a greater awareness of how to manage cases involving AI-enabled fraud and cryptocurrency-based money laundering.” The review asks the government to invite the Judicial College to identify any new courses or mandatory requirements for judges handling complex fraud.

The report notes specialist training already exists but is optional and often crowded out by other courses. It recommends clearer allocation of complex fraud cases so experienced judges and properly equipped courts handle the most demanding trials while magistrates and regional courts receive better awareness of digitally enabled fraud and rapid asset concealment.

The Independent Review of Disclosure and Fraud Offences conducted the work to assess how the criminal justice system can respond to modern fraud threats. The report says fast-changing technology, cross-border financial flows and digital assets are placing new demands on court procedures and criminal justice resources.