Training Item – Fraud
Presentation to Members.
Minutes:
The Counter Fraud Manager provided a training presentation on Fraud. He defined fraud and explained that the principal risk was the danger of losses rather than actual fraud. He referred to estimated fraud losses across a range of sectors and explained that actual losses were likely to be significantly higher.
Members were advised that reported fraud was the highest recorded crime with over 3.6 million cases unveiled by an annual survey. Fraud and cybercrime now accounted for almost half of all crime according to the Office for National Statistics (ONS). Across the 6 Authorities covered by the Shared Anti-Fraud Services (SAFS), this equated to an estimated financial risk of about £12m.
The Counter Fraud Manager provided a second presentation in respect of the Hertfordshire Shared Anti-Fraud Service. He detailed the partner Authorities and the objectives of the Shared Anti-Fraud Service (SAFS). He summarised what SAFS provided and referred to the pleasing situation regarding fraud reporting in East Herts.
Members were advised of risks relating to a “perfect storm” of newly emerging fraud threats for local government following welfare reforms and austerity measures. The Counter Fraud Manager confirmed to Councillor A Alder that it was not for SAFS Officers to recover Council’s fraud losses once a fraud had been identified.
Members were advised that a quarterly report was submitted to the Revenues and Benefits Shared Service in respect of the Council Tax and Business Rate collection rates. He referred to a common fraud whereby a business closed down without paying business rates then re-emerging as the same business under a new name.
The Counter Fraud Manager also confirmed to Councillor A Alder that SAFS did not work with the National Health Service (NHS) as the NHS employed its own fraud Officers. He responded to a number of other comments and questions from the Committee.
The Counter Fraud Manager confirmed to Members that he would investigate the possibility of fraud prevention and awareness raising sessions for Parish and Town Councils. The Chairman thanked the Officer for his presentations. The Committee received the presentations.
RESOLVED – that the presentations be received.