Loss & Fraud Cases and Investigation

Why Fraud Cases ? Non-observance rules and procedures Negligence Over dependency on sub-ordinates Laxity in Supervision Lacunae in Rules and operating procedure Misuse of innocence of customer Prolonged tenure of officials Allowing unauthorized persons in transit sections

Why Fraud Cases ? Improper induction of technology – Misuse of passwords – Correction of data in the backdoor Lack of speedy preventive actions Lenient approach against minor irregularities – Ignoring with warning, censure etc where a strong penalty is warranted

Kinds of Frauds in Department Mails Savings Bank transactions Treasury / Sub Accounts (Cash & Stamps) Money Orders / Bogus Money Order Franking Machine Postal Life Insurance Theft Computer related

Kinds of Frauds in Mail Offices Thefts or Loss or tampering of bags (especially account bags) Loss of contents of bags Loss of registered or insured articles Abstraction of contents of insured articles Pilferage of postage stamps Use of defaced stamps Loss of canvas and other bags Loss of articles of stock

Kinds of Frauds in Mail Offices Insertion of bogus money orders Parallel execution of packages Point of sale – booking of articles having prefixed stamps Highway robbery of mails Loss of cash and valuables from offices Misappropriation of Govt. money Loss or damage to Govt. property

Frauds come to light Mostly by customers’ complaints Error Entries received from other offices During inspections / visits of inspecting officials Surprise checks

Investigation

Objectives of Investigation Detection of source of the fraud Identification of modus operandi Examination material objects used in the fraud & their preservation Assessment of extent of loss, including damage to image of Department & extent of customer dissatisfaction Identification of failures & lapses that aided the fraud Detection of related frauds

Objectives of Investigation Fixing of responsibility – Primary offenders – Subsidiary Offenders (contributory negligence) Assessment of compensation / claim to be paid Adjustment of loss Decision on whether to report to police Gathering evidence for departmental action Remedial measures to avoid recurrence Suggested amendments to rules Restoration of faith of customer

Cases to be reported to Head of Regions (a) Highway robberies and attempted highway robberies of the mail or cash. (b) Losses of mails due to accident, Railway accident and air crash. (c) Cases of house breaking and theft in which loss to Government is involved. (d) Cases of fraud and loss or misappropriation of Government money. (e) Improper or fraudulent use, etc., of postage stamps.

Cases to be reported to Head of Regions (f) The death of, or serious injury to a postal official by violence or accident. (g) All occurrences of grave character, such as the destruction of offices by fire, (the loss of mail boats) and attack on offices by dacoits, riots, etc. (h) All cases under Section 52 of the Post Office Act. i.e. theft, dishonest misappropriation, secretion, destruction, or throwing away, of postal articles (i) Loss of the records of a Office. (j) Destruction of offices by Earthquake, floods or any other natural calamities.

Loss / Abstraction To be safe from Loss / Abstraction of Mail / Account & Cash bags Avoid delay in receipt or despatch of mails at various offices Avoid bags to remain unattended Exchange bags under proper acknowledgements Enter in the error book if condition of bags is not satisfactory

Loss / Abstraction Avoid lapses like sealing of bags, affixing date stamp etc Preserve the seals, chords, labels, mail lists etc till completion of days work Transfer the damaged articles or articles with tampering to HSA / Supervisor Make Error Entry in case of missent / missort / delayed articles Make Error Entry in case of short or excess receipt of RLs / Parcels / SPAs

Need for Focused Attention on Security of postal mail Security of cash & financing arrangement of Post / RMS offices Security of personnel Loss/ fraud committed by staff & outsiders Leakage of revenue

Time for Sharing experience ….. Frauds & remedial actions