Pensions Fraud Risk 2011

BAKER TILLY Pensions Fraud Risk 2011 HOW MUCH FRAUD LESS THAN 1000 MEMBERS 100% 50% - 100% 0% 88% YES FRAUD NO FRAUD While there are fewer perceived instances of fraud in smaller schemes, HAD NO FRAUD 1000 TO 10,000 MEMBERS be due to reduced opportunity or because larger schemes have resources for better fraud detection processes and procedures. 100% 90% 50% 10% PERCENTAGE OF CORBESPONDANTS 0% Pension Pot THAT HAVE SUFFERED FRAUD YES FRAUD NO FRAUD I THE LAST ZA MONTHS MORE THAN 10,000 MEMBERS 12% 100% HAD FRALD 75% 50% 25 0% YES FRAUD NO FRAUD WHAT TYPE OF FRAUD SCHEMES WITH LESS THAN 1000 MEMBERS 50% The areas of a scheme susceptible to fraud varies depending on the 35% 15% size of the scheme. Risk is also an ADMINISTRATION EXPENSES INVESTMENTS issue that goes beyond member transactions. MEMBER TRANSACTIONS 50% 1000 TO 10,000 MEMBERS 74% WHAT PARTS OF A PENSION SCHEME ARE MOST VULNERABLE TO FRAUD 13% 13% ADMINISTRATION EXPENSES 50% MEMBER 23% INVESTMENTS INVESTMENTS MEMBER TRANSAMTIONS TRANSACTIONS MORE THAN 10,000 MEMBERS 14% ADMINISTRATION 13% OTHER EXPENSES 23% 23% 54% *Continued payment after Death of pensioners or pensioners who do not really exist "Legacy schemes ADMINISTRATION MEMBER TRANSACTIONS INVESTMENT S EXPENSES ACTION TAKEN TO COMBAT FRAUD 85% HAVE 66% INTRODUCED A FORMAL FRAUD RESPONSE POLICY PERCENT AGE OF CORRESPONDENTS THAT HAVE CONSIDERED THE RISK OF FRAUD IN THE LAST 24 MONT HS 8% 85% r 15% SPECIFICALLY INCLUDED ON THE RISK REGISTER 15% HAVE HAVE NOT HAVE NOT 26% TOOK NO ACTION CONTACT US: Web: www.bakertilly.co.uk Phone: 020 3201 8000 Marcus McCaffery Partner, Forensic Services [email protected] lan Bell Head of Pensions [email protected] BY SCHEME SIZE BY SCHEME SIZE BAKER TILLY Pensions Fraud Risk 2011 HOW MUCH FRAUD LESS THAN 1000 MEMBERS 100% 50% - 100% 0% 88% YES FRAUD NO FRAUD While there are fewer perceived instances of fraud in smaller schemes, HAD NO FRAUD 1000 TO 10,000 MEMBERS be due to reduced opportunity or because larger schemes have resources for better fraud detection processes and procedures. 100% 90% 50% 10% PERCENTAGE OF CORBESPONDANTS 0% Pension Pot THAT HAVE SUFFERED FRAUD YES FRAUD NO FRAUD I THE LAST ZA MONTHS MORE THAN 10,000 MEMBERS 12% 100% HAD FRALD 75% 50% 25 0% YES FRAUD NO FRAUD WHAT TYPE OF FRAUD SCHEMES WITH LESS THAN 1000 MEMBERS 50% The areas of a scheme susceptible to fraud varies depending on the 35% 15% size of the scheme. Risk is also an ADMINISTRATION EXPENSES INVESTMENTS issue that goes beyond member transactions. MEMBER TRANSACTIONS 50% 1000 TO 10,000 MEMBERS 74% WHAT PARTS OF A PENSION SCHEME ARE MOST VULNERABLE TO FRAUD 13% 13% ADMINISTRATION EXPENSES 50% MEMBER 23% INVESTMENTS INVESTMENTS MEMBER TRANSAMTIONS TRANSACTIONS MORE THAN 10,000 MEMBERS 14% ADMINISTRATION 13% OTHER EXPENSES 23% 23% 54% *Continued payment after Death of pensioners or pensioners who do not really exist "Legacy schemes ADMINISTRATION MEMBER TRANSACTIONS INVESTMENT S EXPENSES ACTION TAKEN TO COMBAT FRAUD 85% HAVE 66% INTRODUCED A FORMAL FRAUD RESPONSE POLICY PERCENT AGE OF CORRESPONDENTS THAT HAVE CONSIDERED THE RISK OF FRAUD IN THE LAST 24 MONT HS 8% 85% r 15% SPECIFICALLY INCLUDED ON THE RISK REGISTER 15% HAVE HAVE NOT HAVE NOT 26% TOOK NO ACTION CONTACT US: Web: www.bakertilly.co.uk Phone: 020 3201 8000 Marcus McCaffery Partner, Forensic Services [email protected] lan Bell Head of Pensions [email protected] BY SCHEME SIZE BY SCHEME SIZE BAKER TILLY Pensions Fraud Risk 2011 HOW MUCH FRAUD LESS THAN 1000 MEMBERS 100% 50% - 100% 0% 88% YES FRAUD NO FRAUD While there are fewer perceived instances of fraud in smaller schemes, HAD NO FRAUD 1000 TO 10,000 MEMBERS be due to reduced opportunity or because larger schemes have resources for better fraud detection processes and procedures. 100% 90% 50% 10% PERCENTAGE OF CORBESPONDANTS 0% Pension Pot THAT HAVE SUFFERED FRAUD YES FRAUD NO FRAUD I THE LAST ZA MONTHS MORE THAN 10,000 MEMBERS 12% 100% HAD FRALD 75% 50% 25 0% YES FRAUD NO FRAUD WHAT TYPE OF FRAUD SCHEMES WITH LESS THAN 1000 MEMBERS 50% The areas of a scheme susceptible to fraud varies depending on the 35% 15% size of the scheme. Risk is also an ADMINISTRATION EXPENSES INVESTMENTS issue that goes beyond member transactions. MEMBER TRANSACTIONS 50% 1000 TO 10,000 MEMBERS 74% WHAT PARTS OF A PENSION SCHEME ARE MOST VULNERABLE TO FRAUD 13% 13% ADMINISTRATION EXPENSES 50% MEMBER 23% INVESTMENTS INVESTMENTS MEMBER TRANSAMTIONS TRANSACTIONS MORE THAN 10,000 MEMBERS 14% ADMINISTRATION 13% OTHER EXPENSES 23% 23% 54% *Continued payment after Death of pensioners or pensioners who do not really exist "Legacy schemes ADMINISTRATION MEMBER TRANSACTIONS INVESTMENT S EXPENSES ACTION TAKEN TO COMBAT FRAUD 85% HAVE 66% INTRODUCED A FORMAL FRAUD RESPONSE POLICY PERCENT AGE OF CORRESPONDENTS THAT HAVE CONSIDERED THE RISK OF FRAUD IN THE LAST 24 MONT HS 8% 85% r 15% SPECIFICALLY INCLUDED ON THE RISK REGISTER 15% HAVE HAVE NOT HAVE NOT 26% TOOK NO ACTION CONTACT US: Web: www.bakertilly.co.uk Phone: 020 3201 8000 Marcus McCaffery Partner, Forensic Services [email protected] lan Bell Head of Pensions [email protected] BY SCHEME SIZE BY SCHEME SIZE BAKER TILLY Pensions Fraud Risk 2011 HOW MUCH FRAUD LESS THAN 1000 MEMBERS 100% 50% - 100% 0% 88% YES FRAUD NO FRAUD While there are fewer perceived instances of fraud in smaller schemes, HAD NO FRAUD 1000 TO 10,000 MEMBERS be due to reduced opportunity or because larger schemes have resources for better fraud detection processes and procedures. 100% 90% 50% 10% PERCENTAGE OF CORBESPONDANTS 0% Pension Pot THAT HAVE SUFFERED FRAUD YES FRAUD NO FRAUD I THE LAST ZA MONTHS MORE THAN 10,000 MEMBERS 12% 100% HAD FRALD 75% 50% 25 0% YES FRAUD NO FRAUD WHAT TYPE OF FRAUD SCHEMES WITH LESS THAN 1000 MEMBERS 50% The areas of a scheme susceptible to fraud varies depending on the 35% 15% size of the scheme. Risk is also an ADMINISTRATION EXPENSES INVESTMENTS issue that goes beyond member transactions. MEMBER TRANSACTIONS 50% 1000 TO 10,000 MEMBERS 74% WHAT PARTS OF A PENSION SCHEME ARE MOST VULNERABLE TO FRAUD 13% 13% ADMINISTRATION EXPENSES 50% MEMBER 23% INVESTMENTS INVESTMENTS MEMBER TRANSAMTIONS TRANSACTIONS MORE THAN 10,000 MEMBERS 14% ADMINISTRATION 13% OTHER EXPENSES 23% 23% 54% *Continued payment after Death of pensioners or pensioners who do not really exist "Legacy schemes ADMINISTRATION MEMBER TRANSACTIONS INVESTMENT S EXPENSES ACTION TAKEN TO COMBAT FRAUD 85% HAVE 66% INTRODUCED A FORMAL FRAUD RESPONSE POLICY PERCENT AGE OF CORRESPONDENTS THAT HAVE CONSIDERED THE RISK OF FRAUD IN THE LAST 24 MONT HS 8% 85% r 15% SPECIFICALLY INCLUDED ON THE RISK REGISTER 15% HAVE HAVE NOT HAVE NOT 26% TOOK NO ACTION CONTACT US: Web: www.bakertilly.co.uk Phone: 020 3201 8000 Marcus McCaffery Partner, Forensic Services [email protected] lan Bell Head of Pensions [email protected] BY SCHEME SIZE BY SCHEME SIZE BAKER TILLY Pensions Fraud Risk 2011 HOW MUCH FRAUD LESS THAN 1000 MEMBERS 100% 50% - 100% 0% 88% YES FRAUD NO FRAUD While there are fewer perceived instances of fraud in smaller schemes, HAD NO FRAUD 1000 TO 10,000 MEMBERS be due to reduced opportunity or because larger schemes have resources for better fraud detection processes and procedures. 100% 90% 50% 10% PERCENTAGE OF CORBESPONDANTS 0% Pension Pot THAT HAVE SUFFERED FRAUD YES FRAUD NO FRAUD I THE LAST ZA MONTHS MORE THAN 10,000 MEMBERS 12% 100% HAD FRALD 75% 50% 25 0% YES FRAUD NO FRAUD WHAT TYPE OF FRAUD SCHEMES WITH LESS THAN 1000 MEMBERS 50% The areas of a scheme susceptible to fraud varies depending on the 35% 15% size of the scheme. Risk is also an ADMINISTRATION EXPENSES INVESTMENTS issue that goes beyond member transactions. MEMBER TRANSACTIONS 50% 1000 TO 10,000 MEMBERS 74% WHAT PARTS OF A PENSION SCHEME ARE MOST VULNERABLE TO FRAUD 13% 13% ADMINISTRATION EXPENSES 50% MEMBER 23% INVESTMENTS INVESTMENTS MEMBER TRANSAMTIONS TRANSACTIONS MORE THAN 10,000 MEMBERS 14% ADMINISTRATION 13% OTHER EXPENSES 23% 23% 54% *Continued payment after Death of pensioners or pensioners who do not really exist "Legacy schemes ADMINISTRATION MEMBER TRANSACTIONS INVESTMENT S EXPENSES ACTION TAKEN TO COMBAT FRAUD 85% HAVE 66% INTRODUCED A FORMAL FRAUD RESPONSE POLICY PERCENT AGE OF CORRESPONDENTS THAT HAVE CONSIDERED THE RISK OF FRAUD IN THE LAST 24 MONT HS 8% 85% r 15% SPECIFICALLY INCLUDED ON THE RISK REGISTER 15% HAVE HAVE NOT HAVE NOT 26% TOOK NO ACTION CONTACT US: Web: www.bakertilly.co.uk Phone: 020 3201 8000 Marcus McCaffery Partner, Forensic Services [email protected] lan Bell Head of Pensions [email protected] BY SCHEME SIZE BY SCHEME SIZE BAKER TILLY Pensions Fraud Risk 2011 HOW MUCH FRAUD LESS THAN 1000 MEMBERS 100% 50% - 100% 0% 88% YES FRAUD NO FRAUD While there are fewer perceived instances of fraud in smaller schemes, HAD NO FRAUD 1000 TO 10,000 MEMBERS be due to reduced opportunity or because larger schemes have resources for better fraud detection processes and procedures. 100% 90% 50% 10% PERCENTAGE OF CORBESPONDANTS 0% Pension Pot THAT HAVE SUFFERED FRAUD YES FRAUD NO FRAUD I THE LAST ZA MONTHS MORE THAN 10,000 MEMBERS 12% 100% HAD FRALD 75% 50% 25 0% YES FRAUD NO FRAUD WHAT TYPE OF FRAUD SCHEMES WITH LESS THAN 1000 MEMBERS 50% The areas of a scheme susceptible to fraud varies depending on the 35% 15% size of the scheme. Risk is also an ADMINISTRATION EXPENSES INVESTMENTS issue that goes beyond member transactions. MEMBER TRANSACTIONS 50% 1000 TO 10,000 MEMBERS 74% WHAT PARTS OF A PENSION SCHEME ARE MOST VULNERABLE TO FRAUD 13% 13% ADMINISTRATION EXPENSES 50% MEMBER 23% INVESTMENTS INVESTMENTS MEMBER TRANSAMTIONS TRANSACTIONS MORE THAN 10,000 MEMBERS 14% ADMINISTRATION 13% OTHER EXPENSES 23% 23% 54% *Continued payment after Death of pensioners or pensioners who do not really exist "Legacy schemes ADMINISTRATION MEMBER TRANSACTIONS INVESTMENT S EXPENSES ACTION TAKEN TO COMBAT FRAUD 85% HAVE 66% INTRODUCED A FORMAL FRAUD RESPONSE POLICY PERCENT AGE OF CORRESPONDENTS THAT HAVE CONSIDERED THE RISK OF FRAUD IN THE LAST 24 MONT HS 8% 85% r 15% SPECIFICALLY INCLUDED ON THE RISK REGISTER 15% HAVE HAVE NOT HAVE NOT 26% TOOK NO ACTION CONTACT US: Web: www.bakertilly.co.uk Phone: 020 3201 8000 Marcus McCaffery Partner, Forensic Services [email protected] lan Bell Head of Pensions [email protected] BY SCHEME SIZE BY SCHEME SIZE