Feeds

Whitehall credit card abuse and payment fraud costs £4m

Fewer incidents but bigger losses

The essential guide to IT transformation

Financial losses in UK government rose last year despite a decreased number of incidents, according to official Treasury figures.

Losses of £4.28m from 761 cases of internal fraud or theft were reported by 25 Whitehall departments during the year ending 31 march 2008. This compares to 1,067 cases costing £3.86m in the financial year 2006-2007.

The greatest financial harm, this year as before, was caused by payment fraud (over £2.9m in losses) and theft of assets (over £440k). One incident of payment fraud resulted in losses of more than £1m. Six other cases of payment fraud each led to haemorrhages of £100,000 or above from government coffers.

Unauthorised use of government-issued credit cards also proved to be a problem. In one case the misuse of government plastic by a senior manager resulted in losses of nearly £78,000 over a four year period. Thanks largely to this case total losses rose from £27,800 to £123,700.

On the plus side incidents of thefts (down from 403 last year to 308 in 2007-08) and personnel management related fraud (which decreased from 253 last year to 105 this years) both fell.

Auditors made a number of recommendations on how to clamp down on future frauds including improved monitoring of credit card usage, storing goods securely, monitoring of “staff with key responsibilities”.

The latest editions of HM Treasury's Annual Government Fraud Reports can be found here. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
EU justice chief blasts Google on 'right to be forgotten'
Don't pretend it's a freedom of speech issue – interim commish
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
Detroit losing MILLIONS because it buys CHEAP BATTERIES – report
Man at hardware store was right: name brands DO last longer
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.