How to spot fraud
Spotting and reporting fraud is the responsibility of every employee. We’ve pulled together some red flags to look out for that might indicate fraudulent activity:
- Unusual financial activities: Have you spotted duplicate invoices? Unusual, complex or new transactions, particularly if they occur at year end or the end of a reporting period?
- Suspicious behaviours: Has someone been reluctant to take leave or share duties? Or have they shown excessive secrecy or unusual withdrawal from colleagues?
- Procurement oddities: Look out for unusual bid patterns, suspicious bidders, for example, suppliers who have little to no relevant expertise or are experiencing financial difficulties
- Document discrepancies: Are there missing documents? Or altered documents with false signatures?
The threat of fraud can come from anywhere - inside the organisation, from external sources, or from those involved in bribery and corruption.
Whether they are opportunistic or organised, cases show fraudsters using common tried and tested methods. Knowing these common methods can help you anticipate how our programs and projects could be targeted. We can categorise these methods using fraud personas:
- The Reckless: They act without care or responsibility regarding the consequences of their actions.
- The Impersonator: They pretend they are another person or entity, such as a supplier or contractor to divert money from the council into their bank account (Bank Mandate Fraud).
- The Deceiver: They make others believe something that is not true. The deceiver might misrepresent facts or circumstances to receive a house, benefit or grant, by not declaring the true extent of their circumstances.
- The Fabricator: Creates false documents or information.
- The Coercer: Manipulates others to act fraudulently.