NFI: private sector case studies
Updated 21 March 2023
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The National Fraud Initiative (NFI) has a number of private sector clients. We have helped them identify fraud and errors in a variety of areas.
Find out how the NFI could help you.
1. Payroll
1.1 National Insurance number validation
A National Insurance (NI) number on the payroll data file provided by a leading housing association appeared on a NFI report because it did not pass a NI number validation test. The housing association checked their records and could not find a data entry error so asked Her Majesty’s Revenue and Customs (HMRC) to trace the number on their system. HMRC confirmed the NI number was valid, but said it belonged to a different person.
The employee was asked to produce documentation to prove his NI number. The housing association also asked Home Office to confirm the employee’s right to work and right to stay in the UK. The Home Office advised the housing association that it was highly likely that the evidence the employee had supplied was counterfeit. When confronted with this information, the employee refused to return to work and after taking advice from ACAS, he was dismissed.
The employee had worked for the housing association for 3 years and had been paid more than 60,000 during this time. He had worked in the UK for some years prior to his appointment including another leading housing association. Additionally, the recruitment agency who placed the employee was one of the leading companies in the recruitment sector.
2. Immigration
2.1 DSG International
Matching payroll records to information about refused visas and failed asylum seekers was a successful data match for DSG International plc, the owners of Dixons, Currys and PC World.
They identified a number of staff who appeared to have no right to work in the UK. Subsequent investigations carried out with the co-operation of the Home Office led to 16 individuals being detained.
DSG International is now looking at the potential to recover tax, National Insurance and pension contributions which could equate to up to 40% of the total employment costs.
3. Pensions
3.1 Invensys, Newcastle upon Tyne
As a result of participating in NFI the technology company Invensys was able to identify 63 instances where it had not been informed of a pensioner’s death and had continued to pay the pension. Overpayments of pension totalled nearly £64,000.
4. Housing
4.1 Jephson Housing Association Group
Data matching of housing information revealed that a person held 2 separate tenancies at the same time with different social housing landlords. Following up it was found that the tenant was not living at one of the properties and had been subletting the house for some time to another person.
An eviction order has now been granted to remove the person unlawfully occupying the house.
4.2 East Thames Group, London
Investigation of a NFI housing rents to ‘right to buy’ data match identified a person who had dishonestly acquired a property under the right to buy scheme. The person had been given a tenancy by a housing association in 1997 and had also managed to obtain a tenancy from a neighbouring local authority a few months later.
The person had unlawfully sublet the housing association property and owed rent arrears of £400 at the time of the investigation. The property has been recovered and legal action is being taken by both parties to recover the right to buy discount and rent arrears.