Advanced Computer Software Group calls for public sector to protect itself from employee fraud following NFA report
23 NOVEMBER 2010 – Advanced Computer Software Group plc is leading the call for the public sector to protect itself against ‘fraud from within’ following publication of a report by the National Fraud Authority (NFA)*. This report highlights that fraud losses in the public sector are close to £25 billion per year and that ‘insider fraud’ within the public sector requires greater understanding. NFA is currently undertaking a scoping study to obtain a greater understanding of employee-enabled fraud and the solutions available to deter this threat.
PricewaterhouseCoopers (PwC), in the report Fraud in the Public Sector (published in July 2010), reported that public sector fraud in the UK is rising as a result of budget cuts and staff reductions. The considerable public sector job losses ahead are likely to exacerbate this.
With reported cases of employee fraud in the public sector rising, Advanced Computer Software is urging public sector bodies to implement technologies, such as spend analytics software, which can help combat this threat.
The private sector has learnt to its cost that business fraud can increase during unsettling economic times. The types of fraud carried out by an employee can vary, from the organisation paying too much for goods or services with the employee pocketing the difference between the real cost and the inflated cost, through to an employee diverting a lucrative contract away from the company to a third party accomplice.
It is therefore vital for public sector organisations to protect themselves from potential employee fraud by implementing comprehensive fraud prevention and detection processes and technologies.
“Public sector bodies need to be vigilant about possible fraudulent activity from members of staff”, says Vin Murria, CEO of Advanced Computer Software Group plc. “Although the majority of people would never consider defrauding the company they work for, there will always be some people, especially in times of economic hardship, who are tempted to commit fraud.”
Murria continues, “To detect fraudulent activity, top of an organisation’s spending list should be spend analytics software, which creates a comprehensive and single view of an organisation’s expenditure, enabling the quick detection of any spending anomalies.”
Spend analytics software provides ‘out of the box’ metrics and measurements, delivering visibility and clarity of an organisation’s procurement including detailed insight into what is being procured, when, at what price and from which suppliers. Anomalies in spend and other indicators that point towards employee-enabled fraud are easily identifiable.
Murria says, “It is vital for the public sector to adequately protect itself against ‘fraud from within’. Technologies such as spend analytics, in combination with appropriate fraud detection processes, provide additional layers of security, reducing an organisation’s risk of becoming a victim of fraud.”
