New Zealand’s Finance Industry Exposed: Fraudulent Activities on the Rise Amid COVID-19 Pandemic

Fraud Alert: Serious Fraud Office Warns of Increased Risk

In a shocking revelation, the Serious Fraud Office (SFO) has sounded the alarm that fraudulent activities in New Zealand’s finance industry have skyrocketed since the onset of the COVID-19 pandemic. The agency believes that factors such as financial desperation and the establishment of new methods for disbursing funds have heightened the risk of fraud, which has now been exacerbated by the crisis.

Counter-Fraud Centre Established to Address Pandemic-Related Fraud

The Counter Fraud Centre - Tauaari Hara Taware team was established by the SFO to tackle the increased risk of fraud during the pandemic. This centre will continue to play a crucial role in leading the government’s fraud prevention activities and assisting agencies in building strong counter-fraud systems.

Consequences of Public Funds Fraud

Fraud on public funds not only deprives those in need of vital resources but also has far-reaching social implications, undermining the effectiveness and value for money of government spending. The SFO is working tirelessly to build capability across the public sector by providing resources and guidance, as well as uplifting New Zealand’s counter-fraud culture.

National Counter Fraud and Corruption Strategy Under Development

The development of a National Counter Fraud and Corruption Strategy (NCFCS) is underway, with the SFO leading the charge in collaboration with the Ministry of Justice, New Zealand Police, and Transparency International New Zealand. The strategy aims to coordinate the public sector’s response to fraud, involving both private and civil society sectors.

SFO’s Strategic Areas of Focus

The SFO has recently released its Strategic Areas of Focus, outlining where it can have the greatest impact on combating fraud. The agency plans to focus its resources on areas that will make a significant difference to New Zealand’s economic and financial well-being in the current environment. Cases taken on by the SFO must still meet the statutory criteria for being serious or complex.

Encouraging Referrals and Reporting Suspicious Activity

The agency continues to accept and encourage referrals about allegations involving suspected serious or complex fraud, regardless of whether they fall within these focus areas. The public is urged to report any suspicious activity to the SFO, helping to combat the growing threat of fraudulent activities in New Zealand’s finance industry.

Key Takeaways:

• Fraudulent activities in New Zealand’s finance industry have increased significantly since the onset of the COVID-19 pandemic. • The Counter Fraud Centre - Tauaari Hara Taware team has been established by the SFO to address the increased risk of fraud during the pandemic. • Fraud on public funds deprives those in need of vital resources and undermines government spending effectiveness. • The National Counter Fraud and Corruption Strategy is underway, aiming to coordinate the public sector’s response to fraud. • The SFO continues to accept referrals about allegations involving suspected serious or complex fraud and encourages the public to report suspicious activity.