02 Oct FRAUD & CORRUPTION: Managing the risk through effective Fraud Prevention
Fraud is a significant problem in Australia, with reports of fraud and corruption appearing in the media with alarming regularity. Some of the very recent ABC news reports include:
ACT Public Trustee Office. “The total amount involved in an alleged fraud involving two staff at the ACT’s Public Trustee Office has been estimated at more than $1.6 million. The fraud came to light in January and two people allegedly involved have been suspended pending disciplinary action. Investigators have alleged the money came from accounts held in trust by the office. “
South Australia Police: “An assistant to former South Australia Police Minister Jennifer Rankine has admitted her role in the misuse of more than $1 million from SA’s Victims of Crime Compensation fund. Andrea Ruth Lowe, 30, was charged along with six others in connection with fraudulent payments that were made over a four-year period. Her husband Nicholas Wayne Lowe pleaded guilty to a number of dishonesty offences and prosecutors have alleged he instigated the fraud through his work at the Attorney-General’s department.”
Sydney Ferries: “Former Sydney Ferries boss Geoff Smith has been jailed for more than three years for using a work credit card to fund a lavish lifestyle. Smith, who pleaded guilty to fraud, spent more than $200,000 on cars, holidays and home renovations.”
Can this happen to you? Does your organisation have processes in place to clearly understand and manage fraud related risks and exposures?
Fraud prevention need to be rigorous enough to identify the areas, business functions and activities which generate the highest exposure to fraud, to encourage staff, managers and executive groups to “think the unthinkable” and then to make sure that any controls that are in place are effective, by considering both the means and the mechanisms of how they may be overridden.
Riskwest provides assistance to its clients to understand and assess the risk of fraud, corruption and official misconduct, by taking clients through an exposure analysis, risk assessment and controls evaluation process.