What are the consequences of fraud?

MIAA Anti-Fraud Specialist, Kevin Howells blogs about the consequences of fraud that can be applied to a fraudster in addition to criminal proceedings.

Conducting a recent fraud staff survey for a client, I was delighted to see that 100% of respondents knew that one of the consequences of committing fraud was a criminal prosecution, and we already focus on that in fraud awareness sessions.

Non-criminal consequences
Whenever we, as Anti-Fraud Specialists, receive a fraud referral, we judge whether there has been a fraud offence committed, and then work to see whether there is enough evidence to justify a criminal prosecution. This isn’t always the case. For the criminal case we must prove “beyond reasonable doubt” that the offence was committed, which means if there is any doubt about the quality of the evidence we have obtained, the case will be rejected by the Crown Prosecution Service.

Disciplinary Proceedings
But there are other consequences as well, and the first of those are disciplinary proceeding, if the subject is an NHS employee. For disciplinary proceedings to take place, the burden of proof is different and of a lower nature than for a criminal case, i.e., it is easier to prove. The offence must be proven on “the balance of probabilities”. If a fraud has been committed by a staff member, then this is likely to be considered gross misconduct, and the consequence of gross misconduct could be the termination of employment.

Regulatory body sanctions
If the person who has committed fraud has been prosecuted (criminal prosecution) and dismissed (disciplinary proceedings), then there are still potentially more consequences. If the fraudster works as part of a regulated profession (such as Doctors - GMC, Nurses - NMC, Radiologists - HCPC, Pharmacists – GPhC and there are more) then the regulatory body may commence proceedings and the fraudster may receive Professional Body sanctions. They may be barred from working in their chosen field, or even banned for life, like this Doctor. 

Financial Recovery
Beyond that, there are still more consequences, of a financial kind. Did you know that if a fraud has been proven, you are nearly always asked to repay the fraudulent payment? If you have claimed 100 hours of overtime at £25, and after you have been prosecuted, dismissed from your job and banned from working in your chosen profession (and even if none of those things happen), you then have to pay back the fraud amount (financial recovery), like these fraudsters.

If you refuse to pay back the fraud money, and if the overpayment has been identified while you are still employed, this may be held back from your salary. If you have been dismissed or have resigned, then your employer has grounds to apply for a Court Order to get the fraud money back from your NHS pension. Can you imagine having to explain to your significant other, that as well as being prosecuted for fraud (and potentially spending time in prison), losing your job, and losing the right to work in your chosen profession you are also having to pay back the proven fraud amount from your intended retirement fund?

In addition to all of that, if your fraudulent act has caused a significant loss to the organisation, you may also be sued by the Trust for reputational or other damages (civil prosecution).

More information about preventing and reporting fraud.