Slides for inclusion in new joiners’ induction pack

a criminal activity where deception is used for personal gain or to cause a loss Fraud is... Three main offences established by the Fraud Act 2006 – Fraud by... False representation Failure to disclose information Abuse of position

The UK an estimated £73 billion a year, with losses of £20.3 billion in the public sector. Fraud costs...

Why does this matter? £20.3 billion would fund 700,000 public sector staff Fraud can also lead to... Reputational damage Distrust Poor morale Higher taxes More expensive public services Funding for terrorism, drug gangs & child exploitation

When the perpetrator spots an opportunity, has a motivation to commit fraud and feels able to justify their actions Fraud happens... Motivation OpportunityJustification ! Fraud Risk The Fraud Triangle Pressure for results Financial Revenge Controls not functioning Staff changes/losses Tolerance I’ve earned it Nobody will suffer It’s a ‘one off’

The fraudsters we encounter Insiders A dishonest minority working within an organisation and either perpetrating fraud themselves or helping fraudsters on the outside Serious organised criminals who target huge public sector budgets to help fund other crimes such as drugs, people trafficking and terrorism Members of the public Either opportunistic or serial fraudsters, who take advantage of tax, benefits and grants provided by Local government for the needy Suppliers and contractors Employees of external firms who spot the opportunity to exploit Local Government processes or systems

How does fraud come to light? Internal & External AuditStaff changesWhistleblowingConfessionsTechnologyAccidentally 40% of fraud against government occurred because proper processes were not followed

Your Council needs YOU! It is your responsibility to help in the fight against fraud You are one of the most effective deterrents against fraud – 30% is uncovered by staff, members of the public, or 3 rd parties YOU are vital Good procedures and controls – and following them - are vital for removing the fraud opportunity. If you spot a weakness in the system, voice your concerns

Suppliers & contractors... requesting payment for goods before delivery placing tender bids much higher or lower than others submitting invoices on non-headed paper notifying that their bank details have changed Suppliers & contractors... requesting payment for goods before delivery placing tender bids much higher or lower than others submitting invoices on non-headed paper notifying that their bank details have changed Colleagues... being disdainful of procedures & controls having a sudden change of lifestyle or unexplained wealth. appearing withdrawn at work reluctant to take holiday or a promotion changing their work practices without authorisation Colleagues... being disdainful of procedures & controls having a sudden change of lifestyle or unexplained wealth. appearing withdrawn at work reluctant to take holiday or a promotion changing their work practices without authorisation Here are some possible warning signs

If you suspect fraud... DO Act quickly to find out what has happened Document the details clearly and factually Report it to your line manager, internal fraud or audit team INSERT CONTACT DETAILS DON’T Ignore your concerns Delay reporting the matter Remove documentation Try to investigate it yourself Discuss the matter with colleagues or friends Approach or accuse any individuals directly

If you are a manager... DO DON’T In this slide, please state the procedure for managers in your Council, on how to react should they have a fraud reported to them. It is important to mention that managers must react when a concern is raised, and not dismiss it

Fraud: Help us spot it and stop it S pot loopholes in your project that fraudsters could exploit T ell your line manager or contact XXXX (insert details) if you suspect fraud O wn the problem – it is everyone’s responsibility to stop fraud P ass the counter fraud, bribery and corruption course INSERT CONTACT NAME OR LOCATION OF COURSE