Government outcome impacts
Fraud against public sector organisations compromises the Government’s ability to deliver essential services and achieve its intended outcomes. Money and resources are diverted away from the intended targets and services delivered could be substandard or unsafe, which can lead to programme failure and lost opportunities for individuals and businesses.

What impacts can look like
Key services not delivered
Funds and resources diverted away from the intended purpose mean that vital services may be delayed, reduced or not delivered to the standard required.
Programme objectives not met
Fraud can undermine the goals and outcomes of public programmes, preventing them from achieving their intended purpose.
Programmes or services shut down
In some cases, fraud can lead to the closure of programmes or services, leaving individuals, whānau and communities without the support they rely on.
Negative customer or client experience
When fraud affects service delivery, the experience for customers and clients is compromised. This can result in frustration, reduced trust and reputational damage.
Constrained service improvements and innovation
When programmes or services are shut down due to fraud – or when financial losses and the cost of responding to fraud strains budgets – opportunities to improve, innovate and expand support are lost. This limits the potential benefits that could have been delivered to the public.
Key questions to consider
Understanding the broader impact of fraud on government outcomes means asking the right questions.
- If your programme was defrauded, how would this impact on government outcomes?
- Could fraud result in services not being delivered? Which services? What would the impact be?
- How would fraud impact your programme’s objectives and outcomes?
- Could widespread fraud result in your programme being shut down or restructured?
- If the money had not been diverted by fraud, what impact might it have had?
- What, if any, impact would there be on the delivery of services by other parts of the government or partners involved in your programme?
Other impacts
Download the full guide
Explore the full resource to identify the impacts of fraud, read about real-world examples, and consider key questions to help assess and prepare for potential risks to your programme or operations. Not every impact will apply to every organisation or initiative, but being aware of them can help your organisation strengthen its fraud prevention efforts and protect those who rely on its services.
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Guide to impacts of public sector fraud (PDF 1 MB)
More information
- Explore countermeasures that organisations can use to help prevent fraud happening in the first place
- Conduct pressure testing to identify and reduce fraud and corruption vulnerabilities
- Register for a range of webinars, free for public sector employees
- See how a robust and well-structured procurement process is the first line of defence against procurement fraud and corruption