Case studies
These case studies tell the stories of New Zealand organisations that have been defrauded. The case studies include details on vulnerabilities in the organisation’s controls, how the organisation responded to the fraud and what actions it took to prevent it happening again.
These case studies also provide information on:
- countermeasures organisations can use to protect themselves
- understanding the seven common fraudster personas
- how to identify red flags
- how fraud and corruption impacts people and organisations.
Fraudulent company incorporations used to abuse government support schemes
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Individual used stolen identities, forged company records, false tax returns and fraudulent funding applications to steal more than $600,000
False invoicing and gifts conceal corrupt road maintenance scheme
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Contract Manager and Maintenance Manager worked together to corruptly obtain money intended for public roading maintenance and development
Employee exploits weaknesses to steal over $1 million in trust funds
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An employee with access to financial systems created fraudulent transactions, altered invoices and fabricated a contract to conceal the fraud
Husband and wife work together to defraud Oranga Tamariki of over $2 million
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A manager responsible for allocating contracts failed to declare a conflict of interest to assign work to her husband’s company
Bribery and corruption in lucrative council contracts
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A public official responsible for council procurement processes accepted bribes and did not disclose conflicts of interest to influence awarding of contracts
Fraud involving gambling licences and grants
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A well-known racing personality used deception to arrange a gambling licence application and influence the grants processes
Financial fraud to cover up theft of $225,000
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An employee stole cash from New Zealand Defence Force funds to support their gambling addiction
$1.25 million fraud detected through anonymous tip line
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An employee fabricated documents and the delivery of education courses to defraud the Tertiary Education Commission
Undeclared conflicts of interest contribute to $2.2 million procurement fraud
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An employee responsible for procurement helped his wife set up companies to supply goods and services at inflated prices
$375,000 fraud detected while school employee on leave
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An employee created false invoices to pay themselves from funds that should have been used for a school building project
Procurement corruption fraud at Auckland Council reported by whistleblower
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An employee failed to declare a conflict of interest and accepted a bribe to secure stationery contracts worth $140,000 for a supplier who was a long-term associate
Employee pleads guilty to false accounting charges in $1 million fraud at Canterbury DHB
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An employee redirected payments from patients to their own bank account to fund a lavish lifestyle
Employee commits $1.2 million fraud against Waitangi National Trust
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An employee responsible for financial administration created fake invoices and exploited weaknesses in the trust’s online banking processes
Trustees defraud charitable trust of $500,000 to fund lavish lifestyle
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Trustees stole government funding from a trust that provided community-based services for people with intellectual disabilities
Lack of clear governance enables $1 million fraud by trustees
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Trustees worked together to transfer funds from a trust responsible for maintaining forest for future generations to accounts that they controlled
Red flags and employee tip-off led to detection of fraud at Auckland Transport
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Corrupt team culture contributed to public officials accepting bribes from a supplier in exchange for awarding roading contracts