pdf fraud reporting, national fraud authority
DESCRIPTION
Catherine's presentation focused on the new estimate of fraud in the Charity Sector.TRANSCRIPT
Working TogetherTo reduce the harm caused by Fraud
Catherine Hayes, Head of Measurement and AnalysisThe National Fraud Authority
Fraud is a Serious Crime
• The National Fraud Authority is an executive agency under the Home Office.
• Aim to reduce the harm done to the UK by fraudsters.
• Co-ordinate the fight against fraud.
Wider Government
Private industry
Not-for-profit sector
Annual Fraud Indicator 2011
Individuals£4.0 billion
Charity Sector
£1.3 billion
Public Sector£21.2 billion
Private Sector£12.0 billion
Fraud Loss
£38.4 billion
Why the AFI is different
Fraud reported to the Police
Fraud identified but not reported
Unidentified Fraud
Charities are victims of fraud
• Annual income of £53.2 billion
• Reliant on altruism, trust and honesty
• Low level of fraud awareness
• No fraud loss data exists
Charities’ perceptions of fraud
• 63% - “My charity is not at risk from fraud”
• 63% - “My charity has sufficient policies to deal with fraud”
• 68% - “My charity would benefit from guidance on how to prevent fraud”
Internal Fraud
• Over 85% respondents thought all types of internal fraud unlikely.
• Theft of inventory - 9%• Expenses or personal benefits fraud – 5%
External Fraud
• Over 80% respondents thought all types of external fraud unlikely.
• Unauthorised use of charity name - 8%• Grant fraud – 3%
Don't know4.8%
Yes, in the last 12 months
4.9%
Yes, but not in the last 12
months5.6%
No84.8%
Has your charity been a victim of fraud?
Who committed the fraud?
18.6
15.9
14.2 14.2
11.510.6
8
3.52.7
0.9
0
2
4
6
8
10
12
14
16
18
20
Other
Employee - manager
Volunteer
Employee – non manager
Don’t know
Beneficiary
Contractor / Supplier
DonorTrustee
Partner organisation
47% Internal
23% External
30% Uncategorised
No62%
Don’t know8%
Yes30%
Did your charity report to the police?
Did you report anywhere else?
• Bank• Charity Commission
• Action Fraud
We’ve never experienced fraud
• 66%
“My charity is not at risk from fraud”
• 90%
“All people connected with this charity are honest and trustworthy”
“In your opinion, how much fraud against your charity could be undetected?
Please provide your estimate as a percentage of your charities’ annual income…”
767 respondents
Estimate of fraud against the Charity Sector
£1.3 billionper annum
Fraud loss 2.4% of Charitable Income
How does this compare to other estimates?
Telecommunications sector 2.4%
(£730 million) of turnover (£30 billion)
General insurance sector 6.2%
(£2.1 billion) of annual total net premiums in the general insurance market (£34 billion)
TV licence fee evasion 5.2%
(£196 million) with £3.6 billion collected
Tax
3.0%(£15 billion) of total
net tax liabilities
Tax credits 2.1%
(£460 million) of tax credits expenditure
Benefits
0.7%(£1 billion) of benefit
expenditure (£148 billion)
Mortgage fraud
0.7%(£1 billion) of the gross mortgage market (£144 billion lent in 2009)
NHS Bursaries 2.7%
(£12.4 million) of expenditure (£460 million)
Top down estimates of
undetected fraud
How to prevent fraud
• Action Fraud - www.actionfraud.org.uk
• Charity Commission Compliance Toolkit: Protecting Charities from harm, Chpt 3, Fraud and financial crime.
www.actionfraud.org.uk
Charities supporting fraud vulnerable groups
Help us, help you
The NFA want to reduce the harm caused by fraud
For further information:
Catherine Hayes Head of Measurement and Analysis Unit The National Fraud Authority
tel: 020 3356 1051 email: [email protected] website: http://www.attorneygeneral.gov.uk/nfa
www.actionfraud.org.uk