Report serious fraud and corruption

Industry impacts

Fraud and corruption targeting public sector organisations can distort fair competition and undermine trust in public procurement and service delivery. Dishonest actors may gain an unfair advantage, pushing out legitimate providers and disrupting markets. This can expose other sectors to increased risk and further instances of fraud.

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What impacts can look like

Market distortion and unfair competition

Fraudsters can gain an unfair advantage by cutting corners or using dishonest tactics. This can push legitimate businesses out of the market and disrupt supply chains, making it harder for everyone to access reliable goods and services. 

Services not being fit-for-purpose 

When legitimate providers are forced out, people may be left with fewer choices, or services that do not meet their needs. This can affect everything from healthcare and transport to housing and utilities.

Exposure of other industries and sectors

Fraud against public sector organisations can have a ripple effect across other industries. When public funds are misused or diverted, sectors such as construction, banking and transport may face delays, reduced investment or disrupted partnerships.  

Increased regulation leads to increased costs

To combat systemic fraud, industries can face tighter regulations, which although necessary, can lead to legitimate businesses bearing the costs of additional checks and processes.

Compliance resource capacity

Industry-wide fraud can use up capacity within an industry to carry out compliance assessments and checks. This can lead to incomplete checks by unqualified or overburdened assessors.  

Compromised industry integrity

Where there is systemic fraud the integrity of the entire industry can be compromised, and legitimate businesses can be tainted merely because they are part of an industry.

Key questions to consider

Understanding the broader impact of fraud on industry means asking the right questions. 

  • If your programme was defrauded, how might this impact your industry? 
  • Would other industries and sectors be exposed, or their integrity impacted?
  • Could fraud result in market distortion or impact legitimate competition in business?
  • What would be the impact on services provided and supply chains? 
  • What would be the wider system impact?
  • Would regulation be needed to deal with systemic fraud if it occurred in your industry? 

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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