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Fighting Fraud Locally
The Local Government Fraud Strategy
Rachael Tiffen – Head of Public Sector Fraud
National Fraud Authority
The Damage Caused by Fraud
The NFA Annual Fraud Indicator 2011
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Knowing the extent and reach of the problem is crucial
in fight against fraud
•
The Annual Fraud Indicator is our blueprint. It
enables us to gain a perspective and judge the scale
of the problem and target our actions accordingly
•
Fraud costs the UK £38.4 billion a year
•
On average £760 per adult
•
Public Sector fraud is 55% of the total at £21.2 billion
•
Mainly tax and benefit fraud but also fraud in
procurement, council tax and housing tenancy
•
Local Government Fraud is estimated at £2.1bn
•
AFI 2012....
National Fraud Authority Annual Fraud Indicator 2011
A cross-government approach
Central Government Response:
Fraud, Error and Debt Taskforce
• Announced October 2010
• Chaired by Francis Maude MP.
Membership from Govt departments
and private sector
• Zero tolerance approach to fraud
across public services – building on
NFA report and action plan
• Pilots in key risk areas to demonstrate
how fraud can be tackled across public
services
• Report published February 2012
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Local Government response: Building
on NFA work
• Pre FFL :NFA existing programme of work and
projects on
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Housing tenancy fraud
Council Tax
Regional Partnerships
Verification
Insider
Procurement
Grants
• Working with the LGA on framework contract on
CRA data
• NFA Pathfinders and pilots in above area
• Scoping emerging risks
• Better knowledge and focus
• CIPFA checklists
• Local Government Counter Fraud event 2011
• Strand of Fighting Fraud Together
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The AFI
Tackling the main risks
£43 million
£46 million
£8 million
Housing tenancy fraud
£90 million
Procurement fraud
£152 million
Payroll & recruitment fraud
Council tax fraud
£900 million
Blue Badge Scheme
abuse
Grant fraud
£855 million
Pension fraud
Tackling the main fraud risks
Housing tenancy fraud
•
£900m lost p.a.
•
50,000 homes occupied fraudulently
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£18,000 p.a. to house a family
•
NFA/LA pathfinders using credit reference
agency checks to verify circumstances
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Potential for cashable savings for local
authorities
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NFA project: checklists, workshops,
pathfinders, Guide and engagement stream
Tackling the main fraud risks
Council tax ‘discount’ fraud
• £90m lost to fraud per annum
• One third of tax payers claim Single
Person Discount
• Pilots in 3 LAs found 4-6% of discounts
claimed are fraudulent
• Now looking at other exemptions – such
as for students
And the other risks......
What does APP mean in practice and
the associated tools?
Acknowledge
Prevent
What does it mean in practice:
• Needs to be cultural change
• An increase in fraud awareness
• Reporting
What does it mean:
• Prevention on application and verification of circumstances
• Sharing knowledge of known fraud
• Better use of data and technology to prevent and detect
fraud
What does it mean:
Pursue
• Local Authorities must have the capacity and capability to
investigate and prosecute fraud
• Need a consistent and more effective response for dealing
with fraud cases
• Each strand of APP links to tools or guidance ......
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The Tools so far
Good Practice Bank –
• Live on CIPFA website
• To be populated by March 2012
The NFA checklist
• Templates
• A „Wheel of Fraud‟ risk tool
• Free E-Learning tool
• Free resilience checks
The Compendium of Powers and Penalties
• Links to good practice documents
• Results of pathfinders and pilots
The CIPFA/NFA online technical forum
• Councils can discuss technical issues and
we will monitor and respond where
appropriate
Access
Go to the TIS homepage at http://www.tisonline.net/
Access to the Fraud Discussion Forum is via
http://www.tisonline.net/discussionforum/default.asp?view=forum&forum=60
To access the Good Practice Bank, click on the link below and enter your
CIPFA email address and password:
http://www.ipf.com/cipfavalidation/login/login.asp?type=OTHER&dest=www.tiso
nline.net/riskmanagement/default.asp?section=Fraud
The Powers and Penalties document, “Wheel of Fraud” and other links are in
“sources of information”. The FFL Strategy will replace this front page when
published.
This page is in development and NFA will be populating this page until March
2012, please forward any useful templates or documents
to [email protected]
Promoting Fighting Fraud Locally
• We are working with LGA, SOLACE to promote
• We are also working with firms and CIPFA
• The NFA will conduct a number of regional workshops with
Audit Commission and MBUS to explain and promote the
strategy throughout March.
• Work with other enforcement agencies
Fighting Fraud Locally
• First sector-led strategy developed under Fighting Fraud Together
• Content arises from practitioners and „experts‟ in the sector
• Needs to be „owned‟ and implemented by local government
• Emphasises the three limbs of Acknowledge, Prevent and Pursue
• NFA will provide tools to help local authorities address fraud risks
• NFA strands of work continue : MBUS and the Audit Commission
• Further tools/ guidance on Business Rates, Grants, Personal Budgets, Housing
tool, Housing Forum and the Fraud and Corruption Manual
[email protected]
0207 035 3417