Types of fraud

Probably the most widely reported area of fraud affecting local government is benefit fraud. The government estimates that total benefit and tax credit fraud and error cost the economy around £3.1 billion in 2009/10, increasing from £3 billion in 2008/09. Housing Benefit makes up around £260 million of these losses but fraud affects all of our services to some extent. Some examples of fraud are:-

Fraud by false representation (Section 2 Fraud Act)

A customer applying to the council for housing claiming to be homeless, when they already own a property or they provide false identification to support their application
A prospective employee providing false work history or qualifications on a job application
A benefit customer concealing the fact that they are living together with a partner on their housing benefit form, representing themselves as a single person

Fraud by failing to disclose information (Section 3 Fraud Act)

A customer claiming a 25% single person discount and failing to inform the
Council that a friend or partner has moved into their property
A council tenant subletting the whole of the property and not informing the Council of this change
A benefit customer claiming on the basis of incapacity benefit failing to report that they have started work

Fraud by abuse of position (Section 4 Fraud Act)

A councillor using their position to support or influence a planning application for project or venture that they have a financial interest in.
An employee colluding with a contractor to ensure that a contract is awarded to a certain company
A manager failing to declare gifts and hospitality from an organisation that is subsequently successful in tendering for a contract.

Possession of articles for use in frauds (Section 6 Fraud Act)

A prospective employee submitting a fake or counterfeit passport as proof of identity in supporting a job application
Any customer submitting a false document to support an application to the Council for services
A customer displaying a fake disabled blue parking badge to evade parking charges

Making or supply articles for use in frauds (Section 7 Fraud Act)