Sheffield Council targeted by increasingly complex fraud attempts

Frauds targeting Sheffield City Council are being tackled by council teams dealing with increasingly complex cases, ranging from online attempts to gain money to fraudulent Blue Badge or council housing-related cases.
By Julia Armstrong, Local Democracy Reporter
Published 31st Jul 2023, 17:27 BST
Updated 31st Jul 2023, 17:27 BST
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Finance manager Stephen Bower told the council’s audit and standards committee that sophisticated online ‘phishing’ attempts and scams targeting the council are part of a national picture of criminal gang activity.

Some frauds involve attempting to get a payout on fake bank mandates. “Luckily, we haven’t had any cases as a result of that,” said Mr Bower.

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He said that processes are in place to try and stop those attempts succeeding. Police forces and the the National Anti-Fraud Network also highlight new types of fraud that are taking place and the team regularly review the control systems used by the council.

Sheffield City Council has been investigating Blue Badge fraud. Picture: LDRSSheffield City Council has been investigating Blue Badge fraud. Picture: LDRS
Sheffield City Council has been investigating Blue Badge fraud. Picture: LDRS

Mr Bower said that halting fraudulent attempts to gain council tenancies are worth on average £200,000 a house, which equals £5 million recovered in total.

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He said that often, once applicants know an investigation is taking place, they will hand back their tenancy. If fraud can be proven, the council will always take legal action, even when a tenancy is given up.

In total, 21 properties were returned as tenants quit whilst under investigation and four more were abandoned during an investigation. This meant all 25 could be let again.

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Coun Sioned-Mair Richards, deputy chair of Sheffield City Council's audit and standards committee, commented on actions to combat fraud. Image: Sheffield LabourCoun Sioned-Mair Richards, deputy chair of Sheffield City Council's audit and standards committee, commented on actions to combat fraud. Image: Sheffield Labour
Coun Sioned-Mair Richards, deputy chair of Sheffield City Council's audit and standards committee, commented on actions to combat fraud. Image: Sheffield Labour

Mr Bower said that four occasions when fraudulent right-to-buy applications were stopped is worth about £180,000 to the council.

The report he presented to the council said that parking services continue to remove Blue Badges that are used by people with disabilities to park cars when they are being abused.

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He said that no prosecutions have taken place in 2022-3 but a number of cases being prepared.

Commenting on frauds involving staff, committee chair Coun Sioned-Mair Richards said: “In the last four years we’ve had six cases of fraud or financial irregularities. Of these, four led to dismissal and two led to action other than dismissal.

“I would say that’s a very small number in such an enormous organisation.”

She thanked Mr Bower and his team for their work in saving the taxpayers money.