Pensions Fraud Risk 2011

BAKER TILLY Pensions Fraud Risk 2011 HOW MUCH FRAUD LESS THAN 1000 MEMBERS 100% 100% 50% 0% 88% YES FRAUD NO FRAUD While there are fewer perceived instances of fraud in smaller schemes, this could be due to reduced opportunity or because larger schemes have resources for better fraud detection processes and procedures. HAD NO FRAUD 1000 TO 10,000 MEMBERS 100% 90% 50% PERCENTAGE OF CORRESPOMIANTS THAT HAVE SUFFERED FRAUD IN THE LAST 24 0% Pension Pot YES FRAUD NO FRAUD MONTHS MORE THAN 10,000 MEMBERS 12% HAD FRAUD 75% YES FRAUD NO FRAUD WHAT TYPE OF FRAUD SCHEMES WITH LESS THAN 1000 MEMBERS 50% 35% The areas of a scheme susceptible to fraud varies depending on the size of the scheme. Risk is also an issue that goes beyond member transactions. 15% ADMINISTRATION EXPENSES IVESTMENTS 50% 1000 TO 10,000 MEMBERS 74% WHAT PARTS OFA PENSION SCHEME ARE MOST 13% 13% VULNERABLE TO FRAUD ADMINISTRATION EXPENSES 50% 23% INVESTMENTS INVESTMENTS MEMDER TRANSACTIONS 14% AMISTRATION EXPERSES MORE THAN 10,000 MEMBERS 13% OTHER 23% 23% 54% "Continged pament atter Death of peesieners or pensioners wha do sot really exist "Legacy schemes ADMINISTRATION EXPENSES INVESTMENTS MEMBER 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 MONTHS 8% 85% 15% SPECIFICALLY INCLUDED ON THE RISK REGISTER 15% HAVE NOT HAVE NOT 26% TOOK NO ACTION CONTACT US: Phone: 020 3201 8000 Marcus McCatfery Partner, Forensic Service0 [email protected] lan Bell Head of Penslons lan [email protected] Web: www.bakertilly.co.uk BY SCHEME SIZE BY SCHEME SIZE