Someone who acts recklessly (without care, responsibility or regard to the consequences of their actions) by disregarding requirements, procedures, warnings or directions.
Reckless actions can turn into serious criminal behaviour and/or can be visible indicators of more systemic problems or vulnerabilities.
Recent case studies
- The operators of two sushi outlets acted recklessly by underpaying nine visa holders a total of $19,467 in wages and $7,416 in superannuation between October and December 2017. The businesses also failed to keep proper time and wages records and failed to issue any pay slips to employees. Annual leave and personal leave entitlements were also not accrued. In his judgement, Federal Circuit Court Judge Michael Jarrett noted, "I am satisfied that the respondents' conduct, whilst not deliberate, was plainly grossly reckless. There is no evidence that they made any enquiries whatsoever about the correct entitlements for their employees at any point after they took over from the previous business owner." The Court ordered penalties of $125,700 for breaches of the Fair Work Act 2009.
- The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry uncovered multiple instances of Australian financial services licensees charging clients fees without providing a service. In many cases, the licensee knew that the client would not receive any services in exchange for the ongoing fee. And there were cases where ongoing fees were charged when there could have been no possibility of providing the services. The Financial Services Royal Commission Final Report noted that in both kinds of cases, there is a real question whether licensees engaged in dishonest conduct in relation to a financial product or financial service, which is an offence under the Corporations Act 2001.
The actions of the reckless fraudsters are countered by measures that support clear and consistent requirements and processes.
Key countermeasures include:
- Governance, accountability and oversight
- Procedural instructions or guidance
- Decision-making powers are clearly defined
- Help and support
- Staff are trained to apply correct processes and decisions
- Declarations or acknowledgements
- A specific form, process or system must be used
- User permissions
- Requests or claims must meet specific eligibility requirements
- Requests, claims or processes are limited by parameters
- Prompts and alerts
- Ongoing compliance, performance and contract reviews
- Change management processes
- Data loss protections
- Quality assurance checks
- Penalties for fraud and non-compliance with rules, processes and expectations are enforced.
Other countermeasures include:
- Positive workplace culture
- Managerial, independent or expert oversight
- Legislation and policy
- Self-disclosure and reporting mechanisms
- System or physical access controls
- Sensitive information controls
- Mandatory information is required to complete the request or claim
- Internal escalation procedures
- Information is verified
- Data matching
- Duplicates are prevented, identified and corrected
- Segregation of duties are applied
- Requests, claims or activities are approved by the appropriate decision-maker
- Privileged access restrictions and monitoring
- Data protected from manipulation or misuse
- System testing
- Complaints about poor or anomalous outcomes
- Reconciliation (accounting)
- Activity reporting
- Internal or external audits or reviews
- Fraud detection programs
- Recovery and Debt Management
- Separation and termination processes.
Download an A3 printable summary of the fraudster personas. If you require these documents in a different accessible format please contact firstname.lastname@example.org.