Transparency International
Wellington, March 2, 2023
In a Report released in November 2022, the Independent Police Conduct Authority (IPCA) found major deficiencies in the way in which Police respond to fraud complaints.
It recommended the development of a fraud prevention strategy incorporating both public and private sector agencies led by the New Zealand Police.
The 45-page Report provides a comprehensive assessment of fraud and police fraud management within New Zealand.
“More New Zealanders are victims of fraud and deception offences than of any other crime. Yet the complaints outlined in this Report, combined with very low rates of recording, charging and prosecution of these offences, show that in relation to fraud, there are significant opportunities for Police to lead across the public and private sectors to achieve their stated mission “to prevent crime and harm through exceptional policing,” the Report said.
Narrow parameters
While there are a number of agencies with fraud-related responsibilities, they operate within narrow parameters. The Serious Fraud Office, for example, focuses on a small number of cases which have a disproportionately high impact on the economy and financial well-being of New Zealanders. The police end up being the lead agency for the vast majority of fraud investigations, even though their investigative staff are not generally qualified.
The study finds that fraud is perceived by the Police, both systemically and culturally, as having low importance and little impact. Fraud is categorised as a ‘volume crime’ offence, regardless of the seriousness of the offending in financial terms or its impact on the victim.
“The Police response typically underestimates the toll that the crime, and the subsequent poor quality of their investigation into it, can have on individuals. Fundamental improvements can only be effected by a coordinated effort by a range of agencies and private sector institutions to develop an integrated prevention plan,” the Report said.
According to the Report, such an effort is best led by the Police and outlined how to significantly improve New Zealand’s fraud prosecution and prevention.
About the IPCA
The Independent Police Conduct Authority is an independent body set up by Parliament to provide civilian oversight of Police conduct. The Report is available on their website.
The Report is the outcome of a review of Police investigative practices about fraud, which was initiated following the receipt of several complaints about the way Police handled fraud complaints.
The number of fraud offences is increasing and more New Zealanders are now victims of fraud and deception offences than of any other crime. The prevalence of cyber-enabled fraud has significantly increased its complexity and sophistication.
IPCA Chairman Judge Colin Doherty said that Authority found that the Police response to fraud falls well short of victims’ expectations and is failing to meet the challenges that the present fraud landscape poses.
“Frauds are too often regarded as civil disputes or minor offences. They are not receiving the priority they deserve, and the needs of victims are too often not being met,” he said.
The Authority has upheld each of the seven specific complaints outlined in the Report.
Those cases exposed several fundamental inter-related problems which derive from the fact that the Police wrongly view fraud, both systemically and culturally, as having low importance and little impact.
The outcome
This has resulted in (a) variable and inadequate processes for receiving, categorising and prioritising fraud investigations both between and within districts (b) poor and inconsistent investigation structures and processes (c) a lack of victim focus and (d) inadequate expertise and training.
“It is clear that Police need a fundamental overhaul of their processes for recording and investigating fraud. We have made a number of proposals for change,” Judge Doherty said.
Some Districts are endeavouring to redress the deficiencies with changes in their processes, but more must be done. The Report makes several recommendations, including that the Police (1) Monitor and understand the extent of fraud (2) Implement effective training for front counter and call centre staff who receive, identify and record fraud Reports (3) Establish dedicated regional fraud units, with a national manager, to triage and where appropriate investigate fraud complaints (4) Implement nationally consistent recording and investigation processes, and (5) Enhance support for victims of fraud.
Judge Doherty said that fraud often has a devastating and enduring impact on people’s lives. It is time for New Zealand Police to treat this crime type with the seriousness it deserves.
“However, Police responses to fraud will not be enough to address the problem. The improvements that are required can only be effected by a coordinated effort by a range of agencies and private sector institutions to develop an integrated prevention plan. Police should take a national leadership role in developing such a plan,” he said.
The above article appeared in parts in Transparency Times (March 2023 Issue) of Transparency International based in Wellington.
