Government system impacts
Fraud places a significant burden on government systems, diverting limited resources away from essential services such as welfare, healthcare, education, trade, national security and justice. This strains budgets and reduces the Government’s ability to address other issues that affect our communities.

What impacts can look like
Investigation and compliance agency resources are stretched
Public sector organisations with compliance and investigatory functions, including police and law enforcement, have finite resources that can be strained by fraud-related investigations.
Pressure on prosecution services, courts, tribunals and legal aid
Court proceedings and legal representation are extremely expensive. Systematic fraud and corruption leading to a larger number of prosecutions may require the Government to provide additional funding for courts and legal aid. There can also be victim-support costs.
Drain on prison system
If prosecution of fraudsters leads to conviction, this results in prison costs.
Drain on welfare system
Fraudsters who are caught may move to government welfare and other services for support and assistance. This can result in additional costs on the welfare systems, housing assistance and other public programmes.
Increased costs for identification system
Identity fraud can lead to costs for authorities that regulate passports, permits and licences, eligibility to other programmes, vetting systems and other ‘person’ checks.
Impacts on other public sector organisations
Where a fraudster has been accepted as a service provider, programme recipient or employee in one public sector organisation, the documents generated can be accepted as proof of identity by another public sector organisation. Fraud occurring against one agency can enable fraud against another.
Key questions to consider
Understanding the broader impact of fraud on government systems means asking the right questions.
- If your programme was defrauded, how would this impact government services?
- If your programme was defrauded, how would this impact other public sector organisations?
- What would be the impact on the law enforcement and compliance system?
- What would be the impact on the prosecution service, courts, tribunals and legal aid system?
- What would be the impact on the prison system?
- What would be the costs of retrofitting controls to 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
- Register for a range of webinars, free for public sector employees
- Find out more about the fraud triangle framework of pressure, rationalisation and opportunity
- Emergency relief programmes can be an attractive target for fraudsters – address the fraud risk before an emergency occurs
- See examples of effective, low-cost counter fraud messaging your organisation can use