Focus on fraud 2016

December 2016

Focus on Fraud

Fraud is now the most common type of crime in England and Wales, almost equalling the combined total of all other offences Source: (Sky News 21.07.2016)

In the first set of official figures showing the true scale of the problem, the Office for National Statistics has revealed there were almost six million incidents of fraud and computer misuse in England and Wales in the year to the end of March 2016. A total of 3.8 million frauds were recorded by the Crime Survey for England and Wales and two million computer misuse offences, such as computer hacking, were reported.

Questions on fraud and cyber-crime were added to the survey from October last year and show around one in 10 people are likely to have been the victim of fraud.

Of the 3.8m fraud cases recorded in the crime survey, around half were cyber-related.

Statisticians said the survey indicates that fraud is now the most common crime likely to be experienced by the general population, with people 20 times more likely to be a victim of fraud than robbery, and 10 times more likely to suffer fraud than theft.

Basic steps to help avoid cybercrime exposure  Over the past year the NFIB, part of the City of London Police, disrupted 4,000 websites, bank accounts and phone lines, and helped prevent fraud to the tune of £369 million. The majority of fraud being referred by the NFIB affects the bank and credit card industry which over the past year has seen an increase of almost 10%. Always log out of your

computer when it’s not in use  Never open an email attachment from an untrusted source  Always report anything you feel is suspicious.

Payroll Fraud - Timesheets Jake, who worked in the financial department of an NHS health body, was not sure whether to bring his concerns to the attention of his supervisor. He was almost certain that the timesheet he was processing could not be right. When he did talk to his manager, a quick enquiry established that Jake was correct: the name of the authorising nurse was wrongly spelt. It also turned out that the nurse claiming the payment had stopped working at the hospital four months earlier. A counter fraud investigation quickly established that she was Copyright © Gateway Assure 2016 registered in England and Wales - MCH House, Bailey Drive, Gillingham, ME8 0PZ - Company number: 08232033

simply visiting the hospital once a week with photocopied claim forms and putting them into the finance department mail tray on the reception desk. As a result, she had been paid £15,000 for work she did not do.

The nurse was given a suspended prison sentence and required to pay back the money.

What could have prevented this fraud?

Health bodies should have clear written timesheet instructions and procedures for all staff and managers. Timesheets should have counter fraud declarations signed by the staff and authoriser and details of the NHS Corruption Reporting Line.

Fraud the facts 2016 Source: (Finance Fraud Action UK)

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Standard staff member declaration: ‘’I declare that the information I have given on this form is correct and complete and that I have not claimed elsewhere for the hours/shifts detailed on this time sheet. I understand that if I knowingly provide false information this may result in disciplinary action and I may be liable for the prosecution and civil proceedings. I consent to the disclosure of information from this form to and by the health body and NHS Protect for the purpose of verification of this claim and the investigation, prevention, detection and prosecution of fraud”.

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The management response The successful implementation and reinforcement of a few simple measures will help:   

Consider what measures are in place in the form of prior authorisation, Ensure staff responsible for authorisation of payment understand what is expected of them, Ensure staff understand the consequences of fraudulent action and the measures your organisation will take regarding redress and prosecution.

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Financial fraud losses across payment cards, remote banking and cheques totalled £755 million in 2015, an increase of 26 per cent compared to 2014.

Prevented fraud totalled £1.76 billion in 2015. This represents incidents that were detected and prevented by the banks and card companies and is equivalent to £7 in every £10 of attempted fraud being stopped. It is the first time the full-year prevented fraud figure has been collected by FFA UK. Online fraud against UK retailers totalled an estimated £155.5 million in 2015, a rise of 13% on the previous year. However, there was also a substantial rise in fraud against online retailers based abroad, rising 27% to £103 million.

NHS computer specialist sentenced for £5K eBay fraud Source: 05 April 2016 NHSBSA

An IT specialist who stole equipment from a hospital and then sold it on eBay has been sentenced after an investigation by police and NHS fraud specialists.

Scott Gill, 39, of Manor Grove, Worksop, Nottinghamshire, pleaded guilty to an offence under the Theft Act (1968) at Doncaster Magistrates Court, South Yorkshire (1st April 2016) and must serve a 250 hour community order. He must also pay compensation of £5000 to Doncaster and Bassetlaw Hospitals NHS Foundation Trust.

He was employed as an IT specialist by the Trust from September 2005. An anonymous tip off was received via NHS Protect’s Fraud & Corruption Reporting Line (FCRL) which alleged that Gill had obtained computer equipment from the Trust and was selling it on eBay. Further investigations revealed that the goods sold on eBay matched the serial numbers of computer equipment used by the Trust, some of which were reported stolen by Gill during an alleged burglary. Doncaster and Bassetlaw Hospitals NHS Foundation Trust, said: “Scott Gill stole NHS property and then sold it on eBay for his own personal gain. Hospital equipment is precious and should not have been abused in this way. This conviction will hopefully act as a deterrent to others who might consider stealing from the National Health Service”.

For more information on Gateway Assure fraud services please contact: Gbolahan Babalola, Local Counter Fraud Specialist, – gbolahan.babalola@gatewayassure.com Copyright © Gateway Assure 2016 registered in England and Wales - MCH House, Bailey Drive, Gillingham, ME8 0PZ - Company number: 08232033