Penalties for fraud and non-compliance
Summary
These are penalties for customers, staff or third parties that commit fraud or do not comply with rules, processes and expectations.
Why this countermeasure matters
A lack of penalties for fraud and non-compliance may lead to:
- individuals being less deterred from committing fraud
- increasing levels of fraud over time
- repeated or endemic non-compliance or criminals reoffending
- information not being shared about individuals who commit fraud.
How you might apply this countermeasure
Some ways to implement this countermeasure include creating penalties like:
- raising debts, penalties and interest payments for clients who commit fraud or do not comply with requirements
- fining, suspending or cancelling providers or third parties who commit fraud or do not comply with requirements or standards
- sanctioning, demoting or terminating staff for misconduct or fraud
- penalties for contractor misconduct or unreasonable failures to meet contract obligations.
How to check if your countermeasures are effective
To measure the effectiveness of this type of countermeasure
- review the results of compliance reviews or fraud investigations of this specific or similar type. Confirm that penalties are:
- enforced, e.g. debts raised, termination, demotion, prosecution
- appropriate for the type of fraud
- consistent across similar cases
- recorded against the customer, vendor, staff member or contractor records
- reported on
- shared with other parties with a need-to-know, for example, other departments are notified of:
- serious or organised fraud
- staff/contractor terminations for fraud/misconduct.
- analyse statistics on repeated non-compliance or convicted criminals reoffending
- confirm that countermeasures are in place to disrupt repeated non-compliance or criminals reoffending.
Related countermeasures
This type of countermeasure is supported by:
Collaborate with strategic partners such as other government entities, committees, working groups and taskforces. This allows you to share capability, information and intelligence and to prevent and disrupt fraud.
Legislation and policy can help prevent, detect and respond to fraud, such as by outlining clear rules, regulations and criteria, allowing entities to collect, use and disclose information and allowing entities to enforce penalties and recover fraud losses.
Investigate fraud in line with the Australian Government Investigation Standards (AGIS).
These are processes that identify and recover debts owed by staff, customers and third parties.
These are processes for ending an individual’s or entity’s engagement or involvement with an organisation or program.
Related Fraudster Personas
This countermeasure helps prevent, detect or respond to the following Fraudster Personas:
