1. Counter fraud training for all staff

2. Icebreaker (DO NOT PRESENT THIS SLIDE)
All stand up
Sit down if you have ever…
Bought something you suspected was a pirate copy or counterfeit
Made something up on a job application
Not paid the fare on public transport
Kept money you found in the street
Not flagged if someone gave you too much change in a shop
Left a bar or restaurant without paying the bill (by accident of course) but then not gone back
Not reported accidental damage you have done to a parked car
Driven faster than the speed limit
Added a few extra minutes to your timesheet
Centre for the Study of Integrity
This slide shows an icebreaker, and is not to be presented
It is based on the ‘integrity test’ devised by Essex University. The university asked young people taking the test to rate their attitude to each of the following activities - with one point if they think it is never justified; two points if they think it is rarely justified; three if they view it as sometimes justified and four if they think it is always justified. Respondents were encouraged to be honest.
We suggest simplifying this and keeping it quite ‘fun’. Ask all in the room to stand up and then sit down if they have ever…
Bought something you suspected was a pirate copy or counterfeit
Made something up a job application
Not paid the fare on public transport
Kept money you found in the street
Not flagged if someone gave you too much change in a shop
Left a bar or restaurant without paying the bill – by accident – but then not gone back
Not reported accidental damage you have done to a parked car
Thrown away litter in a public place
Driven faster than the speed limit
The people left standing (if indeed there is anyone) are the most honest and law abiding. Depending on when they sit down, the others either don’t mind bending the rules a bit, are very relaxed about the rules or do not believe in living by the rules at all. The University of Essex integrity study showed young people were less honest than they used to be. More information can be found here.
This exercise will break the ice but also gets people thinking about honest behaviour

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

4. Public sector fraud £20.3bn
Fraud costs...
An estimated £73 billion a year in the UK
Losses of £20.3 billion in the public sector
Tax £14bn
Central Government £2.5bn
Public sector fraud £20.3bn
Feel free to mention any specific or high value fraud cases that have hit your Council
Local Government £2.2bn
Benefits £1.6bn

5. 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

6. Read all about it:
Feel free to add quotes that relate specifically to your own department/ council

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

8. Serious organised criminals
The fraudsters we encounter
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
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

9. Case study
A criminal obtained more than £500,000 by diverting payments intended for a legitimate supplier into his own bank account.
He checked government records and spotted regular, large, payments of the same amount being made to a supplier company by a department.
He called the department and, chatting to staff, found out when the payment runs were made. He then called again, to amend the supplier’s bank account details to his own. And started to collect payments…
The fraud was discovered because the criminal’s payment claims did not match a credit note on the system – of which he had no knowledge. This prompted the department to check details with their legitimate supplier.
This case is currently being prosecuted

10. How does fraud come to light?
Internal & External Audit
Staff changes
Whistleblowing
Confessions
Technology
Accidentally
40% of fraud against government occurred because proper processes were not followed

11. YOU are vital
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 3rd parties
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
Your Council needs
YOU!

12. Some of the warning signs of fraud
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
Bring to life by mentioning any cases you have come across that support these tell tale signs

13. Discussion Consider these examples...
Simon made fraudulent claims of more than £28,000 for travel and subsistence. He did this by forging authorised signatures, claiming for hotels when he had stayed with relatives, and claiming for visits not made. He had been passed over for promotion on several occasions and felt the organisation was treating him unfairly.
Mary recently returned from a business trip overseas. When putting in a claim for travel and subsistence, she decided to add an extra £50. She was experiencing financial difficulties at home and her youngest son’s birthday was approaching. After all, she thought, nobody would suffer as the department wouldn’t miss £50.
With this discussion, we are encouraging people to consider if fraud is ever acceptable and to identify what limits, thresholds or mitigating factors they may be swayed by. The aim is to challenge thinking and help people reach the conclusion that it is never acceptable to behave in these ways.
This slide builds so you can have a discussion about the first case and ask people what they think of Simon’s behaviour, why it’s wrong and what punishment they think Simon should receive. Given the amount of money Simon has taken stake and his sense of entitlement, the group is likely to be firm in their belief he should receive a severe punishment
Then you can discuss Mary’s case in the same way. Much less money has been taken here, and Mary is hard up, so people may feel more lenient. But this is still fraud as Mary has dishonestly claimed for something and is stealing from the public purse. In some departments, people have been dismissed for fraudulently boosting their expense claims by £50.
Before running this exercise it’s a good idea to check if anyone in the room is called Simon or Mary and apologise in advance

14. DO DON’T If you suspect fraud...
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
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
This is the guidance provided in the e-learning course. Please add a hotline number or additional reporting mechanism if your department has one

15. DO DON’T If you are a manager...
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
DON’T

16. Spot loopholes in your project that fraudsters could exploit
Fraud: Help us spot it and stop it
Spot loopholes in your project that fraudsters could exploit
Tell your line manager or contact XXXX (insert details) if you suspect fraud
Own the problem – it is everyone’s responsibility to stop fraud
Pass the counter fraud, bribery and corruption course
(give details on where to find it)
Please add in contact details for your department

17. Thank you for participating
Any questions?
For further information please contact INSERT NAME AND CONTACT DETAILS
Please add relevant contact details on this slide