WELCOMEOrganised by: Sponsored by:

Opening remarks from the ChairMartin Hilditch, Acting Editor, Inside Housing

Organised by: Sponsored by:

Amandeep JhawarAudit DirectorService Matters

Organised by: Sponsored by:

Mark ConnollyTenancy Fraud Office Orbit East and South

Organised by: Sponsored by:

Fraud expertise

Amandeep Jhawar, Audit Director, Service Matters• Lead on number of fraud investigations in the social

housing sector• Lead on strategy of illegal subletting with BCC and 10

other social landlords (recognised as best practice by Audit Commission).

Mark Connolly, Tenancy Fraud Officer, Orbit East & South

• Currently seconded to the role of tenancy fraud officer• Exclusively investigating fraud since July 2013• 10 years neighbourhood officer experience

• Profile of a fraudster• Types of fraud – case studies• Protection from fraud• Orbit Group’s approach to tenancy fraud

Global profile of a fraudster• Age: 70% of fraudsters are aged between 36 and 55• Employment: 61% of fraudsters are employed by the defrauded

organisation. Of these, 41% were employed there for over 6 years• 70% of frauds involved collusion• 56% of fraud relates to misappropriation of assets (27% being

procurement fraud)• 24% revenue or asset gain

Opportunity – change in personal circumstances or business pressuresMotivation – financial greed being the leadRationale – superiority (because I can – 29% frauds committed by ED)

Source: KPMG International Global profiles of the fraudster 2013

Case study

• Maintenance Manager aged 38• Employee for 8 years• Colluded with third party

contractors

• Rationale: overlooked for promotion

• Opportunity: weak internal controls

• Motivation: financial greed

Silent Partner (Maintenance Company)£1.3m over 5 years

Working 7am – 7pm each day Popular The life and soul of the party Fixer Earning £32k per annum Spending 3 months in South

Africa, Australia and Cuba Owning a £25k 4x4 Owning a £500k property

If I wanted to defraud your social landlord, I would…

Build relationships

Try my luck

Manipulate system weaknesses

…build close relationships…Lettings Manager

• Took money to manipulate waiting lists

Finance Officer• Amended cheques• £3k

Housing Officer• Evicted tenant and stole items

CEO• Befriended 3rd parties• Gave them properties

…try my luck…

500,000 invoices• £500,000• £5,000

Tender information• Tenant sold to bidder

Tenant account• £6,000• Third party criminal

Tenant data• Sold to loan companies

…manipulate current systems…

Poor managementProcurement card

• £10,000• B&Q laminate

flooring

Expenses• £7,000• Non-existent

mileage

Poor system designFinance systems

• Bogus supplier• Bank account

Cash theft• £10,000 of

resident’s monies

If I wanted to protect your social landlord from fraud, I would…

Prevention• Don’t let them into the organisation• Understand the fraud risks within

your organisation• Perceived as an organisation with

zero tolerance• Separation of duties/culture of

compliance• Raise awareness of fraud – e-learning• Robust ICT security – ISO 27001

Detection• Working patterns• Strong culture of

confidential reporting• Variance analysis• Personal life style

Internal / external audit Declaration of interest Probity policy

Anti-fraud strategy Awareness training Fraud control assessments

“You cannot eliminate fraud, just reduce your

exposure.”

What is tenancy fraud?

• Subletting (usually at much higher rents)

• Non occupancy by tenant as principal home

• Obtaining tenancies by deception

• Attempts to obtain successions by deception

• Paying money to exchange properties

How we came to tackle fraud in Bexley

• Part of South East London Housing Partnership (SELHP) committed to tackling social housing fraud

• Funding from local authority (Bexley keen to pursue fraud)

• Bring in Fraud investigators from Southwark Council or internal secondment

• Orbit Group decided on internal secondment to tackle tenancy fraud for long term benefit

Investigations

• Identify fraud through referrals and data matching

• Visit at unsociable hours (5.30am to 11pm)

• Use tools – credit checks, Facebook, Google, LinkedIn, 192.com, electoral register

• Partnership with local authorities and other social landlords

• Work to counter tenant claims – i.e. they work 6am to 11pm

Successes

• Raised awareness throughout Orbit South leading to referrals from internal and external customers – 101 referrals (August 2013 to date)

• 28 properties recovered (August 2013 to date)

• £18,000 home loss payments prevented (Erith Park Redevelopment)

• £216,000 Right to Buy discounts prevented

Successes

• £11,000 arrears recovered / prevention of accruing arrears

• £140,000 Housing and Council Tax Benefit fraud uncovered for the council to pursue

• 5 ASB cases resolved early through fraud investigations

Service Matters• Delivering services to help build

communities

• We help social landlords to deliver added value, cost savings and compliance

• Service Matters’ commercial thinking will generate efficiency savings to Orbit

• NHF Housing Finance Conference 2014 – visit us at stand 63

www.servicematters.uk.com

QUESTIONS &ANSWERS

Organised by: Sponsored by:

Closing remarks from the ChairMartin Hilditch, Acting Editor, Inside Housing

Organised by: Sponsored by:

THANK YOUThe webinar is now closed

Organised by: Sponsored by: