Human impacts
Public sector fraud and corruption is not a victimless crime. Although the financial loss is often absorbed by government agencies, deeper and more lasting harm is felt by individuals, whānau and communities. Fraud can cause significant trauma – financial hardship, emotional distress and mental health challenges. Victims may lose access to essential services, face social stigma or experience long-term instability, and those close to the offender can experience a sense of betrayal and loss of trust.

What impacts can look like
Loss of access to vital government services
Fraud committed against public sector organisations can divert resources away from those who need them most. This may result in people losing access to essential services like healthcare, housing or financial support, and can lead to financial, social, physiological and mental health impacts for those who rely on
these services.
Identity theft
Fraud against public bodies can result in individuals having their identity stolen. This can have long-term impacts, exposing the person to re-victimisation and potentially impacting their eligibility for services or benefits they are reliant on.
Family and community impacts
Fraud can have far-reaching impacts beyond the individual as the effects ripple through families and communities. Loved ones may experience stress and disruption as they try to support someone dealing with the aftermath of fraud.
Risks to health and safety
Fraud can put people’s health and safety at risk by denying them essential services, or exposing them to unsafe activities, equipment or environments.
Damage to reputations and trust
Fraud can damage personal and professional reputations. It also erodes public trust in individuals, institutions and systems, making it harder for communities to feel confident in the support available to them.
Key questions to consider
Understanding the broader impact of fraud on people means asking the right questions.
- What would be the potential human impact if your programme was defrauded?
- Could fraud against your programme result in mental health, psychological or emotional problems by individuals who should benefit from your programme?
- If fraud diverted funding from your programme, would people miss out on services, opportunities or payments they depend on?
- Could fraud against your programme impact on the whānau or carers of individuals who should be benefiting from your programme?
- Could fraud against your programme result in financial stress or further fraud against individuals who should be benefiting from your programme?
- Could fraud against your programme put people’s health or lives at risk?
- What more can your organisation do to recognise and respond to the human impact of fraud?
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
- See examples of effective counter fraud messaging your organisation can use
- Read case studies about New Zealand organisations that fell victim to fraud
- Use free online tools to support your organisation to strengthen its fraud and corruption controls
- Learn how employees, contractors, vendors or business partners can harm an organisation from within