New directions in policing fraud: The emergence of the counter fraud specialist in the United Kingdom

Fraud and corruption in the public sector have become issues of increasing importance for the government in the United Kingdom. Numerous initiatives have emerged ranging from high profile publicity campaigns against benefit fraud and tax evasion to the establishment of specialist bodies, such as the NHS Counter Fraud and Security Management Service (NHSCFSMS). One of the most interesting developments, however, has been the emergence of the ‘counter fraud specialist (CFS)’ across central and local government, as well as the private sector. These are specially trained civilian personnel who are tasked to prevent, investigate and secure sanctions against fraudsters. They undertake common training packages and are accredited by the Counter Fraud Professional Accreditation Board (CFPAB). This paper first outlines the emergence of the CFS; then draws upon the results of recent survey data to discuss some of their characteristics. The paper also considers some of the main issues raised by the growth of the CFS including the possible emergence of an embryonic ‘fraud police’, the indirect ‘load shedding’ of fraud investigation and the governance of this new breed of policing personnel.     

Uncovering the Iceberg: Mandating the measurement of fraud in the United Kingdom

Having regard to the impact of the credit crunch on fraud, the 19% average cuts in public spending and the wide disparities in fraud loss data, this article will argue for the mandating of fraud measurement through the introduction of legislation in the United Kingdom. The proposed statute applies to both the public and private sectors and incorporates minimum standards of measurement accuracy and the publication of findings and subsequent reduction strategies. In support of this contention this paper offers empirical evidence provided by the United States (US) Improper Payments Information Act of 2002. Further options for change are also presented including developing the role of the National Audit Office and the creation of an infrastructure for knowledge management through the sharing of best practice.     

Public corruption and fraud in the Netherlands: Research and results

Empirical research by social scientists on public corruption and fraud in the Netherlands has been scarce. Exceptions are research on criminal cases of corruption and, recently, a survey among local government functionaries to establish the extent of public corruption and fraud in the country. The article presents the conceptual framework and the results of this survey research on local corruption and fraud. A discussion of the findings concludes the article: How serious is the problem of Dutch public corruption and fraud? To stimulate comparative research, the questionnaire is added in an Appendix.     

The false claims act and the eroding scienter in healthcare fraud litigation

This article addresses the federal government's expansive methods in tackling healthcare fraud, particularly in misapplying the False Claims Act. Although tasked with the obligation to curtail the fraudulent submission of Medicare & Medicaid claims, the U.S. government must rein in the current trend to utilize the False Claims Act against smaller medical providers. As the Act's original focus has ebbed in significance, the government has increasingly applied the False Claims Act to circumstances that do not evince actual fraud. In doing so, federal courts have effectively eroded the statute's critical scienter requirement. The federal common-law doctrines of "payment by mistake" and "unjust enrichment" adequately address the payment of non-fraudulent, albeit false, Medicare & Medicaid claims. Yet the federal government pursues these appropriate remedies only rarely and in the alternative, essentially when the government fails under the False Claims Act. Thus, this article argues for reform, calling for a clearer delineation between remedial and punitive measures. In cases involving smaller medical providers, courts should strictly limit the False Claims Act to those instances where fraud is clearly manifest.     

The prominence of fraud in New South Wales metropolitan media reporting

This study analyses the coverage of six major crime types in two of Australia’s largest newspapers. The study aims to test the prevailing viewpoint that fraud and financial crimes are proportionally underreported in the media. The study considers the cost of fraud and financial crime to society, the choices the media makes when reporting on fraud and financial crime, and the impact of media reporting on public policy and law enforcement. The study challenges prevailing views on the extent of media coverage of fraud, finding that there is significant coverage of fraud in the sampled Australian newspapers.     

You've been warned: Consumer liability in Internet banking fraud

This contribution provides a critical analysis of the treatment of consumer liability in cases of Internet banking fraud. Whereas generally banks refund the financial losses associated with Internet banking fraud to the individual victim, exceptions do occur, at least in certain EU jurisdictions. These, however, are rarely spoken about, but do indicate a number of (legal) problems. The main problems are lack of clarity and lack of consistency as to when a consumer can be held liable. These problems also maintain potential negative consequences such as increase in perceived risk, loss of trust and demands for better security, which may be suboptimal from an economical perspective. This article concludes by reflecting on the potential benefits of the introduction of zero liability as an alternative.     

The effect of social support on fraud victims' reporting behavior: A research note

Little effort has been made to understand white-collar crime victims, and little is known about the factors that influence reporting behavior among these victims. In this paper we use the concept of social support to explain responses to fraud, one form of white-collar crime. Results show that social support in the form of information from others influences whether fraud victims report their victimizations. Fraud victims' responses parallel those of street crime victims in that both types of victims respond according to the direction of social support they receive from family and friends.