Communicating identified fraud incidents
Fraud can occur in any entity, irrespective of the strength of fraud countermeasures in place. Although entities may have some discomfort in communicating fraud has occurred, communication of fraud incidents can assist in preventing future fraud. Entities should not feel that they have failed when fraud is detected, as in some circumstances, detecting fraud shows that the fraud control system is working.
Increasing awareness of the high likelihood of getting caught is an effective deterrent to economic crimes such as fraud; it demonstrates the risk of obtaining rewards through dishonest behaviour. The Commonwealth Director of Public Prosecutions acknowledges that increased publicity of prosecution can have a deterrent effect (see Prosecution Policy, Section 6.12(f)).
The diagram below outlines the benefits that may arise from providing de-identified information to officials and customers on fraud detected and subsequent action taken.
Entities with a significant number of fraud cases may use a communication strategy to plan the reporting of various types of fraud, to assist with targeting information to the relevant audience.