New Zealand’s Shady Underbelly: Types of Financial Fraud Exposed

A recent report has shed light on the alarming prevalence of financial fraud in New Zealand, highlighting the numerous ways scammers and thieves are duping unsuspecting individuals and organisations. From petty theft to sophisticated cybercrime, the types of financial fraud committed in the country are as varied as they are insidious.

The Scope of Financial Fraud

The report reveals that:

Theft of cash accounted for 17% of reported cases
Theft of plant or equipment made up another significant proportion of cases
Cybercrime, including identity theft and intellectual property crime, emerged as a major concern
False invoicing and payroll fraud were also among the top financial frauds

Public Sector Vulnerability

The report highlights that local government bodies, including airports and cemetery trustees, were particularly vulnerable to financial fraud. Additionally:

Council-controlled organisations, licensing and community trusts, and local authorities had a high number of cases
Central government departments, tertiary education institutions, and state-owned enterprises also experienced significant losses due to financial fraud

The Impact on Schools

Schools were not immune to financial fraud, with 1% of reported cases coming from educational establishments. While the numbers may seem small, they are still a cause for concern, particularly given the trust placed in educators to manage school finances.

Types of Financial Fraud

Here are some common types of financial fraud:

Theft of cash: stealing physical money, often from businesses or individuals
Theft of plant or equipment: taking valuable items like computers, machinery, and other assets
Theft of inventory: stealing goods or products stored in warehouses, shops, or elsewhere
Cybercrime: identity theft, hacking, and other forms of digital fraud
Expense claim fraud: exaggerating or faking expenses to get reimbursement
Credit or fuel card fraud: using stolen or fake credit cards to make purchases or withdrawals
False invoicing: creating fake invoices for goods or services that were never provided
Payroll fraud: stealing money from employee wages, falsifying records, and other forms of payroll manipulation
Backhanders or undeclared gifts: bribes or kickbacks given to individuals in exchange for favours or benefits

Staying Vigilant

The report highlights the importance of being aware of potential scams and taking steps to protect ourselves from becoming victims. Whether it’s cash theft, cybercrime, or false invoicing, staying informed and vigilant is crucial in today’s financial landscape.

By understanding the types of financial fraud that exist and taking proactive measures to prevent them, we can all play a role in keeping our finances safe and secure.