Alarm has welcomed the government's proposal to reform fraud laws, making ‘fraud' a common law offence.
Alarm, the national forum for risk managers in the public sector, said councils are spending approximately £1bn a year on investigating and paying out for fraudulent claims.
It said until now those committing fraud have typically been charged under the Theft Act of for conspiracy to defraud.
Under the new proposals, the courts will punish those believed to have committed fraudulent actions accordingly. This will include dishonesty, making false representations or abusing a position of trust, said Alarm.
Alarm said it believed that by introducing a specific offence for fraud, more people will be prosecuted and this will act as a strong deterrent for those considering trying to fraudulently obtain money from public sector organisations.
Alarm chair-elect Carolyn Halpin, said: “There is a common misconception that claiming against a public sector body is ‘easy money;' and no one is disadvantaged in any way.
“ALARM is keen to reiterate that in fact we are all disadvantaged, as the money used for investigating and paying for fraudulent claims, is taken away from other, vital front-line services.
“If those contemplating trying their luck with a fraudulent claim know there is a specific offence of fraud they could find themselves guilty of, it will hopefully put them and make them rethink.”
