20 november 2015 detecting and preventing fraud in the delivery of public services in a digital...

20 November 2015

Detecting and preventing fraud in the

delivery of public services in a digital world

2COPYRIGHT © 2015 OAKTON

Australian firms too 'complacent' about corruptionThe World Today, 17 Sep 2015

“The report argued that, while corruption is low in Australia, other studies suggest the incidence is growing amid recent high profile cases, such as the insider trading scandal involving an employee from the National Australia Bank and a worker from the Australian Bureau of Statistics, who were both acting for their own profit.

Other companies that have faced corruption allegations in Australia include former Reserve Bank subsidiaries, Securency and Note Printing Australia, BHP Billiton, AWB, and Leighton Holdings.”

The World Today

Digital fraud is a strategic threat to our organisations and should be treated accordingly


THE DIGITAL LANDSCAPE

---------------------------- 1940s – 1990s -------------------------------

---------------------------- 1995 – 2015 -------------------------------

COPYRIGHT © 2016 OAKTON

Gartner 2015

Digital technologies — mobile, social, big data and cloud — are disrupting

businesses everywhere by revolutionising the role technology

plays in our everyday lives.


Engagement and experience expectations continue to change


Engagement expectations continue to change

“Digital” touchpoints resonate with Consumers more and more everyday. By 2018 Digital Natives

(Millennials) will begin to out-number all other types of Consumers.

Millennials type consumers have been born into the digital world, not just adopting but driving innovation of new technologies to ‘enhance’ their lives.

Traditional Consumer (Not Digital)

Digital Native(Millennials)

Transitional Consumer (Switching to Digital)

Decade of Change *

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* Sourced from PWC Research 2014


Transformational Government and citizen-focus


Government is increasingly seeking digital solutions to service delivery:

Customer self-service / e-portals / MyGov

e-Tax, e-Health

Grants Management

Customer Relationship Management Systems

Tender and Contract registers

ACT – Access Canberra – web and payment solutions

Express Plus – mobile apps

TRANSFORMING TO CUSTOMER FOCUS


The potential of the data we generate and store creates substantial motive and opportunity


Findings indicate that the typical fraudster is:

36 to 45 years of age

generally acting against his/her own organisation

employed in an executive, finance, operations or sales/marketing function

holds a senior management position

employed in the organisation in excess of six years

frequently acted in concert with othersSource: KPMG Global profiles of the fraudster

PERPETRATORS OF FRAUD


• Data theft and ransom demands• Attacks on payment systems / websites• Theft of intellectual property• Government credit card fraud• Employee identify theft• Fake credentials• Fake company and invoicing

TECHNOLOGY ENABLED FRAUD



CHRISTOPHER PUSCHAK



Has unethical behaviour tarnished the Volkswagen brand forever? CPA Update, Edition 41 28OCT15


Public servant who lied about stillbirth to skydive with government money sentenced to weekend detention

A Canberra woman who used her government credit card to take a lavish holiday on the Gold Coast has been sentenced in the ACT Magistrates Court.

ABC News, 30 Oct 2015

Four people charged for alleged fraud from ACT Public Trustee

The suspect transactions took place over seven years and are believed to include debit card fraud, thefts from cash machines, contractor kickbacks, and false paperwork trails.

ABC News, 16 Oct 2015

OTHER CASES


CALL TO ACTION


Declarations of Interest and due diligence

Restrict data storage devices (USB, disk, Bluetooth)

Access monitoring

Behaviour monitoring

Secure database, cloud and communications

Data analytics / Computer Assisted Audit Tools (CAATS)

Listen to customer complaints / concerns -> whistleblower line

Audit practices – financial & compliance, use of CAATS

Tone at the top – strong statement on fraud prevention

PREVENTION IS BETTER THAN DETECTION

THANK YOU

© Oakton Services Pty Ltd 2015.This work is copyright. Except as permitted under the Copyright Act 1968 (Cth), no part of this publication may be reproduced by any process, electronic or otherwise, without the specific written permission of the copyright owner. Neither may information be stored electronically in any form whatsoever without such permission. This presentation is intended to provide a summary of the subject matter covered. The Owner disclaims all liability in relation to the contents of this presentation and the use to which it may be put. Trademarks used in this document are the property of the owner.

20 november 2015 detecting and preventing fraud in the delivery of public services in a digital...

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