Pinsent Masons, the international law firm, said in 2012 to 2013 the SFO sought £31.9m in confiscation orders from white collar criminals but only obtained just over a tenth of that sum, £3.9m.
Barry Vitou, partner at Pinsent Masons, said budget cuts have forced the SFO to rein in the range of its activity and cut corners.
The SFO was recently forced to request a further £19m in emergency funding partly to deal with the LIBOR investigations.
And Pinsent Mason’s warned the SFO could face even greater budgetary challenges if investigations into possible manipulation of the foreign exchange market expand.
“Tracking down the proceeds of crime is rarely easy to do but it is essential if potential fraudsters are to be deterred and businesses reassured that white collar crime is being taken seriously,” said Vitou.
“Seizing more assets from fraudsters will see more individuals and businesses compensated.
“It is vital for UK businesses, individuals who have been the victims of crime and for British justice.”
The SFO has had a higher success rate from pursuing smaller confiscation orders from lower value crimes.
The HM Courts and Tribunals Service collected 90% of confiscation orders under £1,000.
But smaller orders carry high administrative costs which means less of the proceeds find their way back to the victims.
The SFO’s budget has fallen by 40% since the credit crunch from £52m to £32m despite it being widely expected that the recession would lead to more fraud being committed.
Vitou added: “White collar criminals are being convicted but are effectively getting away with the vast majority of the proceeds of their crime.
“As it has been made clear from the request for emergency funding for the SFO it requires a larger budget to do its job.
“With an increased budget, the SFO would be able to investigate more fraudulent activity and recoup a far greater proportion of the proceeds of crime for the Exchequer and victims of crime”
