A coalition scheme called the “Midata” initiative, which gives consumers the right to request information from companies on a range of matters, could be vulnerable to fraud. The scheme was devised to encourage people, armed with better information, to save money and make better shopping choices but the government is said to be concerned that [...]
The Midata initiative
Category: Cheque fraud, Finance, Fraud
| Tags: Fraud, government, identity theft
Was PM wise in giving new role to A4e boss?
With Emma Harrison, the former chairwoman of A4e facing fraud allegations within the company in the last year or so, is David Cameron’s judgement in question after he named her his “families champion”? It has emerged that the Department of Work and Pensions (DWP) was contacted by A4e, the welfare to work programme, about suspected [...]
Voting fraud
The issue of postal and proxy voting fraud has been a persistent rumour in the last few council elections and, with a vastly increased amount of postal votes, in the general election of two years ago. Pendle Council is looking into allegations following a sharp rise in postal votes in part of the borough although [...]
Category: Fraud, Legal
| Tags: electoral fraud, police, postal voting
Rise in employee fraud
New figures released by the Fraud Prevention Service for the first half of 2012 have shown a 52% increase in fraud committed by employees. What are the reasons for this rise? Uncertain job prospects have been cited as one possible explanation along with staff increasingly feeling a sense of entitlement, however misplaced, which leads them [...]
The Midata initiative
A coalition scheme called the “Midata” initiative, which gives consumers the right to request information from companies on a range of matters, could be vulnerable to fraud.
The scheme was devised to encourage people, armed with better information, to save money and make better shopping choices but the government is said to be concerned that the initiative, by making spending details more widely available, increases the risk of them being “misappropriated”.
There are fears that, with much of this information held on home computers or with third party intermediaries, the threats of identity fraud or theft are greater but the government still thinks the benefits of the scheme outweigh the risks and will see consumers making changes to their lives after analysing their data.
Can it ever be “worth” the risk of encouraging greater identity theft and fraud? What’s your view?
http://www.telegraph.co.uk/finance/financial-crime/9770444/Monitor-your-spending-scheme-raises-risk-of-ID-fraud-identity-theft.html
Category: Cheque fraud, Finance, Fraud
| Tags: Fraud, government, identity theft
Was PM wise in giving new role to A4e boss?
With Emma Harrison, the former chairwoman of A4e facing fraud allegations within the company in the last year or so, is David Cameron’s judgement in question after he named her his “families champion”?
It has emerged that the Department of Work and Pensions (DWP) was contacted by A4e, the welfare to work programme, about suspected fraud within the company in November 2010, at least 10 days before the Prime Minister gave her an unpaid role as an advisor for troubled families.
Ms Harrison stepped down from her position with A4e on Friday and has also resigned from her role with the government, but she has always denied allegations that she received almost £2m for leasing properties which she owned or controlled back to her business. She added that her own finances and those of the company were “legal, above board, open and transparent”.
The DWP says it has made clear that if there is any evidence of systemic fraud at A4e, any existing contracts will be terminated.
Voting fraud
The issue of postal and proxy voting fraud has been a persistent rumour in the last few council elections and, with a vastly increased amount of postal votes, in the general election of two years ago.
Pendle Council is looking into allegations following a sharp rise in postal votes in part of the borough although the local council’s Labour leader called it “sour grapes”. It has led to something of a war of words between Conservative MP Andrew Stephenson and the council leader Mohammed Iqbal who insists his party won seats at the most recent council elections fairly.
The MP disagrees, saying that electoral fraud is widespread and should be tackled immediately. He claimed that some houses in his constituency saw eight or more voters registered without any checks taking place. However, Mr Iqbal challenged the MP to produce the evidence and let the police deal with the matter.
Whatever the outcome in Pendle, electoral fraud is a growing concern which will resurface at regular intervals unless strong action is taken. That’s my view, what’s yours?
http://www.bbc.co.uk/news/uk-england-lancashire-19397157
Category: Fraud, Legal
| Tags: electoral fraud, police, postal voting
Rise in employee fraud
New figures released by the Fraud Prevention Service for the first half of 2012 have shown a 52% increase in fraud committed by employees. What are the reasons for this rise?
Uncertain job prospects have been cited as one possible explanation along with staff increasingly feeling a sense of entitlement, however misplaced, which leads them to consider theft as in some way justified.
The Business Crime Reduction Centre is one way in which business may be fighting back in that it looks at business crime in particular and checks out firms for their physical security as well as their cyber security. Perhaps the rise in employee fraud is partly down to the fact that some businesses are able to monitor and record such thefts so, in reality, it is the detection rate which is increasing rather than the actual numbers of frauds taking place.
What’s your view, we’d like to hear from you.
http://www.yorkshirepost.co.uk/news/around-yorkshire/local-stories/fraud-committed-by-employees-significant-threat-to-businesses-1-4890462
Mortgage application fraud
Recent figures, which come from Experian, are showing that mortgage application fraud was up by nearly 23% in the second quarter of this year.
Now around 39 of every 10,000 mortgage applications are seen as fraudulent and the rise coincides with a number of lenders tightening up their borrowing criteria to make it harder for many to obtain a mortgage. Perhaps the two are linked?
It obviously stems from the fact that households are more strapped for cash and this, combined with lenders changing their criteria, is responsible for the rise but there is surely no excuse for it. Most were found to be trying to hide a bad credit history while many also give misleading employment information.
Are you surprised at the big rise? Let me know your views.
Car clocking men dealt with by the courts
The crime of car clocking, namely changing the milometer on a car to persuade a potential purchaser that it has fewer miles on the clock, is in the news again after two men in Gloucestershire were given suspended prison sentences for selling cars with incorrect mileage and falsified service records.
The men were sentenced for fraud after complaints from customers which were reported to Gloucestershire County Council’s Trading Standards Service. The judge in the case said that car clocking was prevalent and those who commit it should expect severe punishments. The two in this case were told to expect an immediate custodial sentence if they are in any more trouble but car clocking generally is a problem throughout the country.
Always try and buy from a reputable dealer and conduct as many checks as possible on any car you are looking to buy.
http://www.thisisgloucestershire.co.uk/Gloucester-car-clocking-duo-hauled-court/story-16746430-detail/story.html
Fraud is largely committed from the inside
A new study from KPMG has found that most of the fraud committed comes from within an organisation rather than outside of it.
It revealed that 61% of the value of all cases in its fraud barometer for the first half of this year was committed by management or employees of the organisation itself, with 55% coming from finance directors, chief executives and other senior management. However, losses from UK fraud did fall significantly, to £374m and the number of cases prosecuted rose compared to last year.
Hitesh Patel, UK forensic partner at KPMG, said that the value lost from “inside jobs” emphasised the need for businesses to ensure that there are measures in place beyond simply trust. Does your company have an effective anti-fraud regime in place to deter such activity happening? Let me know.
http://www.guardian.co.uk/business/2012/jul/09/fraud-bosses-206m
Pension schemes vulnerable to fraud
The pension consultancy Baker Tilly has revealed worrying figures showing that almost a fifth of UK pension schemes have suffered fraud within the last couple of years.
It most commonly occurs when pensions are still paid out following the death of a member but there are other methods used, such as “ghost pensioners”, where a ghost account is set up to access a pensioner’s benefits. Baker Tilly says that the figures may actually be higher than feared through more fraudulent activity taking place under the radar.
The Pensions Regulator meanwhile says that large-scale fraud is relatively rare, affecting an extreme minority but, the message is for all trustees to stay alert to the possibility of fraud occurring. The figures show few trustee boards having any formal fraud prevention policies and the advice is that boards have to be bolder and more transparent in their approach to fraud.
So, you have been warned, stay alert!
http://www.thisismoney.co.uk/money/pensions/article-2162604/Pension-fraud-doubles-year-people-continue-claim-payments-dead-relatives.html?ito=feeds-newsxml
Scam victims want their money back
While Denis Lefranq has been found guilty of attempting to defraud and has been jailed for two years and four months, his victims are demanding that he pays the money back.
Lefranq was also ordered, at Leeds Crown Court, to pay back £30,000 over six months but that is just a fraction of the £380,000 that he took from a wine scam. He had owned 3 York Place in Leeds, a fine dining restaurant and had also offered premium brands, such as champagne, at bargain prices.
However, though orders were placed, customers never received any deliveries and, on receiving the money, Lefrancq shut the restaurant and fled to the continent. He was arrested in Prague and was brought back to the UK but, despite him being found guilty his victims are angry that he has not yet been ordered to pay back all the money he received.
Though most paid by credit card and were therefore able to reclaim their money, they are furious that he has only paid a fraction back. Surely the rest of the £380,000 that he took from innocent victims will soon be returned too? Despite the prison sentence it is only right that he also returns the money.
http://www.yorkshireeveningpost.co.uk/news/latest-news/top-stories/380-000-wine-conman-must-repay-30-000-1-4655354
Category: Finance, Fraud, Legal
| Tags: credit card, Fraud, restaurants
Was PM wise in giving new role to A4e boss?
With Emma Harrison, the former chairwoman of A4e facing fraud allegations within the company in the last year or so, is David Cameron’s judgement in question after he named her his “families champion”?
It has emerged that the Department of Work and Pensions (DWP) was contacted by A4e, the welfare to work programme, about suspected fraud within the company in November 2010, at least 10 days before the Prime Minister gave her an unpaid role as an advisor for troubled families.
Ms Harrison stepped down from her position with A4e on Friday and has also resigned from her role with the government, but she has always denied allegations that she received almost £2m for leasing properties which she owned or controlled back to her business. She added that her own finances and those of the company were “legal, above board, open and transparent”.
The DWP says it has made clear that if there is any evidence of systemic fraud at A4e, any existing contracts will be terminated.
http://www.independent.co.uk/news/uk/politics/emma-harrison-hired-despite-a4e-fraud-warning-7441303.html