It’s easy to think about financial crime as a problem of numbers: whether we consider sums of money laundered, amounts of assets stolen through fraud, or even fines imposed on businesses by the regulator, the negative consequences of financial crime can apparently all be summed up by a series of figures. Most articles on the topic feature some astonishing numbers (ideally it involves the word trillion) in the opening paragraph, and while the intention may be to shock the reader into paying attention, it can sometimes seem that this approach to defining the issue serves mainly to reinforce a particular way of thinking, which prioritises the money and finance elements of money laundering and other financial crime.
Clearly, these concerns do need to be at the forefront of our response to financial crime. Indeed, levels of publicawareness around the immense economic damage that crimes like corruption and fraud inflict still seem far lower than they should be (the to fraud certainly suggests that financial crime is not yet a UK voter priority, although increasing attention is being paid to the problem). But only considering the economic harm of financial crimes can blind us to a deeper, darker reality, which is that these types of criminal practice, along with the predicate crimes that underpin them, are devastatingly harmful in ways that are much harder to quantify than purely monetary costs. To name but one of many examples, environmental crime, which has been a focus of Themis’s recent research in projects such as has been shown to obliterate entire ecosystems and communities, not simply inflict economic damage on them.
Perhaps the most pervasive and yet overlooked harm that financial crimes cause is the psychological effects they produce, not only in direct victims, but also more generally. These harms are not imaginary or immaterial – they have clear impacts and are well-attested. For example, a UK survey published in March 2024 found that 60% of fraud victims experienced mental health distress after being affected by financial crime. For over a quarter of respondents, psychological strain was reflected physically, in the form of weight fluctuation, headaches, and the onset of panic attacks. This reinforces the findings of a 2019 study on inhabitants of Madrid, which found that, for its research population, ‘the probability of having mental health needs increased and quality of life decreased as the economic impact of fraud on family finances increased’.
Even those who are not the direct victims of financial crime can be psychologically affected by it. In February 2024, Ghanaian psychologists published a study which found that, in the words of the authors, ‘witnessing corruption among state institutions and government officials, and the perception that the rich could influence these officials for personal gain, was strongly associated with depression and anxiety symptoms’. It is confronting that this study was conducted through a survey of university students, who had an average age of 22 - widespread financial crime, in the form of political corruption, is capable of undermining, if not fully destroying, the optimism and hope of whole generations of young people.
The changing nature of financial crime is set only to multiply and intensify its psychological impacts. For instance, measures to protect against payment fraud, such as the implementation of two-factor authentication for online bank account access, have driven criminals to engage in far more personal types of scams that can bypass system controls by making an apparently genuine social connection with a victim. These are best exemplified by so-called romance scams, which rely on the establishment of an intimate relationship between scammer and victim, as a previous Themis blog explains at length.
Essentially, romance scams involve a financial criminal deliberately targeting an individual’s most personal vulnerabilities to extract money from them, through long-term deception and manipulation. This has meant that the anguish and embarrassment often experienced by fraud victims can be felt even more deeply, sometimes with tragic consequences. In 2021, a 43-year-old man named Chris Leeds took his own life, apparently as the result of falling victim to two financially and emotionally devastating romance scams. Mr. Leeds’s brother described the impact of this on his family: “[Chris] was loved, no, adored by us all, and we miss him so, so much. It leaves such a hole in our lives.”
What cost can be assigned to a loss like this? What compensation can be made for the absence of a father, a brother, a son? How, equally, can we measure the generational impact that rampant corruption has on a nation’s ability to renew itself psychologically, when realistic hope appears impossible in the face of pervasive grift and theft?
The difficulty of offering any decent answer to these questions gives some explanation as to why the emotional and psychological harms of financial crime are much less frequently and seriously discussed than its economic impacts. This does not mean, however, that we should avoid these discussions. Rather, the realisation that financial crime wreaks immeasurable psychological damage should reaffirm the resolve and determination of all those involved in preventing it.
In fact, one could go further, and suggest that an understanding of the effects of financial crime on individual and general mental health should provoke an equivalently emotional reaction on our part. The fight against financial crime should be seen not just as a technical matter of securing and strengthening our economies (although it certainly is that), but also as a moral struggle against the criminals who inflict uncountable harms upon our planet and its people, that demands our impassioned engagement if meaningful victories are to be won.
It is a commitment to contribute to this struggle that drives the work of Themis. We aim to reduce the global impacts of financial crime through technological innovation, investigations and intelligence-gathering, training and research, and the provision of outsourced anti-financial crime services. This is also what animates the work of the Themis Foundation, an independent charity which Themis supports, whose mission is to support victims of financial crime through advocacy and the provision of grants to partner organisations.
In the UK and Ireland, Samaritans can be contacted on freephone 116 123, or email jo@samaritans.org or jo@samaritans.ie.
Stay on top of the ever-changing financial crime landscape by accessing the latest information on emerging criminal techniques and the risks associated with carrying out business with particular industries or in particular jurisdictions.
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We’ve handpicked a selection of standout books our team discovered over the summer—perfect picks to kick off the “back-to-school" season. These compelling reads offer deep insight into financial crimes, the systemic vulnerabilities they exploit, and their far-reaching consequences.
AI is fast becoming a high-ROI tool in financial crime and compliance. From cutting costs and boosting efficiency to enhancing resilience, strategic AI investments are helping CFOs do more with less - transforming risk management and unlocking new value across the financial sector.
The UK’s latest National Risk Assessment (NRA) reveals how money laundering and terrorist financing are evolving—and how the UK is fighting back. A vital guide for AML policy, it arms businesses with intelligence to spot risks and stay protected.
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Many clients have heard of the OFAC 50 Percent Rule but aren’t sure how it affects them. It’s far-reaching, with hidden sanctions risks. This post explains the rule, why it demands deeper due diligence, and steps to identify and mitigate those risks.
In June, the EU removed the UAE from its list of high-risk jurisdictions from an AML perspective, signaling growing international confidence in the country’s financial crime oversight.
New updates to the Land Conversion and Financial Crime Risk Assessment link environmental harm to financial crime. Cattle rustling in Nigeria and Cameroon is now red-rated, with added risks on carbon credit fraud, child labour, mining corruption, and gold smuggling.
An overview of modern slavery, distinguishing between human trafficking, smuggling, and forced labor. It highlights the global prevalence of exploitation and the importance of understanding these definitions to combat such crimes.
Dubai’s $160B foreign-owned real estate market faces money laundering risks. The UAE now requires reporting of property deals over AED 55K via REAR. Criminals like Daniel Kinahan have exploited property to hide illicit funds, underscoring the need for strict compliance.
Examines how digital platforms and cryptocurrencies facilitate human trafficking, allowing traffickers to operate anonymously and at scale, posing challenges for law enforcement.
Investigates how sanctions intersect with trade-based financial crimes in Hong Kong, highlighting the complexities businesses face in navigating regulatory compliance.
Financial crimes cause more than economic harm—they hit mental health too. UK data shows 60% of fraud victims face distress; Ghana research links corruption to anxiety and depression. This blog calls for tackling both psychological and financial impacts.
Environmental crime worsens gender inequality, driving violence, trafficking, and hardship for women—especially in regions like the DRC and Peru. Women defenders face abuse, and climate change deepens risks like water scarcity, child marriage, and health threats. Tackling these crimes is key to protecting women’s rights and safety.
AI is transforming financial crime prevention—improving detection, reducing costs, and streamlining compliance. Generative AI and graph networks boost due diligence, while ethical, human-guided use counters criminal misuse. Themis champions tech-human collaboration.
Explores the application of fuzzy logic in Anti-Money Laundering (AML) systems, emphasising its role in improving name-matching accuracy and reducing false positives, thereby enhancing compliance efficiency.
This book focusses on the challenges faced by law enforcement in North West USA and in British Columbia to combat illegal logging, as well as those of the timber-industry communities established since the late 19th century to maintain meaningful and financially viable lives.
The FATF has highlighted the UAE’s progress in fighting financial crime. Its third enhanced follow-up report upgraded three recommendation ratings for the country, marking a step forward in meeting international standards.
Lebanon’s economic collapse, fuelled by debt, corruption, and instability, has led to hyperinflation and greater financial crime risk. In Oct 2024, the FATF grey-listed Lebanon. The country pledges a two-year reform plan to boost transparency and restore investor confidence.
The UK treats profits from legal overseas cannabis businesses as criminal property under the Proceeds of Crime Act. Few cases qualify for exceptions, creating a legal grey area—so anyone handling such funds should proceed cautiously and seek legal advice.
The UK’s 2023–2026 Economic Crime Plan commits £400M to tackle money laundering, kleptocracy, and fraud, with reforms to Companies House, crypto, and sanctions. Progress is clear, but critics urge more urgency and funding. Success depends on public-private collaboration.
Suspicious Activity Reports (SARs) are key to fighting financial crime, with 42% of fraud found via tip-offs. Rising UK SARs and account freezes show their impact. Themis urges strong reporting systems and whistleblower protections to foster transparency.
Corrupt elites still exploit the UK property market via offshore structures and relatives to hide assets. Over 18,000 firms remain non-compliant. With cases of children holding luxury homes, Themis calls for tougher enforcement as new UK and FATF guidance target transparency gaps.
Corruption undermines sustainable development, financial integrity, and DEI. A Themis–Denominator study links lower corruption to higher DEI scores. Marginalised groups, especially women, suffer most. Promoting diversity and transparency is key to fairer societies.
Hindenburg Research accuses India’s Adani Group of fraud, alleging stock manipulation, shell firms, and nepotism—halving Gautam Adani’s net worth and shaking investor confidence. The case highlights how financial crime can roil markets and the need for strong due diligence.
Supply chain failures have linked firms like Inditex and Skechers to forced labour and reputational risk. The EU’s CSDDD will require large companies to address human rights and environmental harms. Themis offers tools to assess suppliers and fight modern slavery.
On World Wildlife Day and CITES’ 50th year, Themis reflects on tackling illegal wildlife trade—the 4th largest financial crime. Laws, AI, forensics, and global cooperation drive change, but shifting demand, like ivory to hippo teeth, shows challenges remain.
Puppy smuggling in the UK has surged post-pandemic, with organised crime exploiting demand and loopholes to import sick or underage dogs. Despite new laws, enforcement gaps remain. Themis urges buyer vigilance—tools like Themis Search can help spot breeder risks
Romance scams rose 30% in 2022, with victims losing £8,234 on average—especially men and those aged 65–74. Scammers use fake profiles and emotional manipulation. Themis urges due diligence in dating; tools like Themis Search can flag risks and help platforms protect users.
Crypto plays roles in both social good and crime—over $50M has aided Ukraine, but bad actors use it to evade sanctions and launder funds, notably via the UAE and Central African Republic. Themis calls for stronger due diligence and compliance to curb misuse.
The Russian invasion of Ukraine has heightened trafficking risks for women and children. Over 2.5M flee, with traffickers exploiting chaos, especially in Moldova, Poland, and Italy. The OSCE urges swift action to warn refugees of false offers and protect them.
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