CRIME REDUCTION INITIATIVES
A recent report estimated that £8bn is lost to internal fraud in the UK public
sector.Graham Kemp, head of public sector at SAS UK, discusses how to combat this pressing issue using data analytics.
in the public sector1 counting for 39%2
T
he National Fraud Authority (NFA) estimates that £21bn is lost to fraud with internal fraud ac- . As the UK Government
comes under increasing pressure to cut costs across all departments and agencies, reducing internal fraud is an obvious place to start. Every penny lost could be redi- rected towards improving effi ciencies and strengthening frontline services for deserv- ing citizens.
42 | public sector executive Mar/Apr 11 Rising fraud in the public sector
The recession has been a major driver for rising fraud levels. History proves that dif- fi cult economic times see an increase in fraudulent activity from organised scams through to opportunistic crime. Internal fraud now makes up as much as 39% of all fraud cases in the public sector. Many ex- pect this fi gure to rise as pay freezes and staff redundancies come into effect. This
type of fraud ranges from managers ma- nipulating data to meet stringent targets, to procurement fraud, administration er- rors and even selling sensitive information to third parties.
Continued cutbacks mean public sector staff are under more strain to ‘deliver more for less’. As a result, fraud control invest- ments are being reduced or neglected. This is counter-intuitive because the lack of in-
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