Fraud Within the Financial Sector Isn’t New

Fraud through the ages

Financial fraud is nothing new, it’s a serious crime that’s got severe punishments associated to it and it always has. Since the internet was created in the late 1980’s, and the news became readily available for everyone to see and now it seems that the fraud cases have become a hot topic for many publications.

Corporate scandals have shaken both the public and private sector over the recent decades, impacting organisations across the globe not only financially but also their reputation. The extent of the crime can vary, whether it was hundreds, thousands or even millions. There are situations where companies only end up losing a little before the fraudster gets caught, compared to other organisations going bankrupt and losing everything.

Although the final outcome of fraud cases are generally the same, the way of generating fraud is always different. Some cases will involve a forged document, whilst others will focus on selling an item they don’t own.

Fraud in 2017

Looking at the survey results from PWC it shows that 37% of public sector organisations experienced some sort of economic crime in the last 12 months, although it’s not just a problem in the public sector, it’s a problem across all industries. As you can see, 28% of private sector companies have reported fraud in the last 12 months. The public sector have noticed that due to staff reductions there are fewer resources to control internal situation with the long-term effects meaning the risk of fraud will increase.

% of organisations reporting fraud in the past 12 months

% of organisations reporting fraud in the past 12 months

 

In recent months, fraud has been in the press an appalling amount, looking at both public and private sectors. From the HRMC Payments Worker being jailed for stealing £2.4 million, to the procurement manager at Bombardier stealing £134,000 and ending up in jail for 6 years. There have been many other cases in the last 6 months including the finance manager at County Durham and Darlington NHS Trust stealing £84,000 and a junior accountant stealing £2.5 million from a car dealership to fund his gambling habits. The reasons behind fraud vary, but the outcome will always be the same.

 

Recommended Article: Combating Document Fraud with Digital Technology

Post by Francesca Timpson

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