Home Access – Anti-fraud measures National Rollout Customer Journey Becta Board 20 May 2009

1. Home Access – Anti-fraud measures National Rollout Customer Journey Becta Board 20 May 2009

2. Objectives • To set out the customer journey from awareness of HA to acquisition of a Home Access Package • Identify the points within the journey where fraud is possible • Provide a summary of risks, controls and mitigations • Set out where suspected fraud has been detected in the pilots. 1

3. Summary of Fraud Activities Key Developments • Proactive approach - importance recognised from outset • Importance of risk has been reflected in team structure • Overall approach reflects experience from ILAs • Appointment of dedicated fraud audit officer (Richard Forrow) • Commissioning Bentley Jennison to review and audit processes • Consultation and liaison with DCSF Internal Audit – represented on Board • Consultation with LSC about the EMA programme approach • Separate Fraud Risk Register – based on LSC template • Business processes reflect anti-fraud activities • Development of corporate anti fraud strategy 2

4. Four key phases of the Home Access Customer Journey for grant recipients • 1 Become aware of and learn about Home Access • 2 Request or receive an application pack, and read and understand the material 3 Complete printed application form, append documentation, choose password and return 4 Are notified of submission receipt, and sensitive documents returned 5 Customers receive confirmation of approval, details of eligibility, approved supplier info, card details • 6 Receive card explanation letter and PIN number from card provider • 7 Receive payment card and activation notice from card provider • 8 Consult approved supplier register, and identify an appropriate supplier • 9 Visit approved supplier outlet or website and select appropriate product • 10 Present card and identification. Payment is made, or a further ID check is required • 11 Customers collect goods in-store or Packages are delivered to their home address by the Supplier • 12 Customers receive Home Access guidance and information pack from the supplier, with training materials and links to support • 13 Customers may have to register product online • 14 Engage with Local Authority, School and Community resources to enhance learner support • 15 (If necessary) seek technical support in case of product failure / defect • 3 During this phase customers: During this phase customers: During this phase customers: During this phase customers: This Presentation covers Phases A to C only

5. Customer Journey Overview of fraud risks against the customer journey stages in National Rollout The risks featured have been chosen to represent many risks that have been identified along the course of the Home Access operation Fraud risks have been identified throughout the operation 4

6. To reduce the complexity of showing fraud risks in this manner, the following processes have been omitted: Assistive Technology (SEN) Aggregation Targeted Funding Fraud committed against the Customer after they have received their HA Package 5 Customer Journey

7. Home Access customer journey for grant recipients 6

8. Fraud Related IssuesPhase A – Discovery (1) Phishing Prospective HA applicants could be targeted to divulge personal information that would enable criminals to impersonate them using stolen/forged HA application forms How will it happen? • Helpline employees could obtain information and pass it on for gain • Criminals could impersonate MSP employees over the telephone to obtain personal information • Criminals target vulnerable groups and provide inducements to collude in application • Parents or anyone gaining access to school or LA Meetings could gather personal information • Blank HA Application Forms could be intercepted in the Postal System Risks – monetary and reputational • Potential Applicants for HA could be impersonated by fraudsters to obtain grants • Personal information, gained as a result of the HA scheme, could lead to unrelated fraud 7

9. Fraud Related IssuesPhase A – Discovery (2) Mitigating policies • Warnings provided openly to those invited to attend School and LA Meetings • Applicants will be alerted to the MSP call-back policy for limited telephone communication • MSP staff will be CRB certificated and reference checked • MSP postal services will be audited and plain envelopes will be used • HA Application Forms will carry a reference number to identify their source • Application Forms only available via the MSP and delivery address recorded 8

10. Home Access customer journey for grant recipients 9

11. Fraud Related IssuesPhase B – Application Checking (1) Fraudulent Applications going undetected • Ineligible HA applicants could make applications that include incorrect information that is intended to deceive the MSP for the purpose of receiving an HA Grant How will it happen? • Criminals may attempt to make false applications when ineligible under HA Grant rules • Applicants could provide out-of-date or marginally incorrect information • Existing benefit fraudsters could apply in the knowledge that MSP checking will not reject them • MSP staff could collude with criminals or friends and relatives to defeat checking protocols • MSP operations could become inefficient for many reasons – e.g. backlogs, poor discipline etc. • Criminals infiltrating the Postal Service may intercept and alter application information 10

12. Fraud Related IssuesPhase B – Application Checking (2) Risks – monetary and reputational • Ineligible Applicants could obtain HA grants • Successful methods used to obtain HA grants by fraudulent means could be passed on Mitigating policies • Use of data originated by the DCSF to check applications for matching information • Use of a clear definition of eligibility based on nationwide Free Schools Meals regulations • MSP staff will be CRB and reference checked and performance monitored • MSP operations will work to the very highest professional standards • Service quality and anti-fraud audits will be carried out by experts with experience of Home Access • Grants will only enable the recipient to obtain a computer – never cash 11

13. Home Access customer journey for grant recipients Phase C: Purchasing Step 11: Customers collect goods in-store or Packages are delivered to their home address by Supplier Step 6: Customers receive card explanation letter and PIN number from card provider Step 7: Customers receive payment card and activation notice from card provider Step 8: Customers consult approved supplier register, and identify an appropriate supplier Step 9: Customers visit approved supplier outlet or website and select appropriate product Step 10: Customers present NOE, payment card and identification. Payment is completed. Suppliers Suppliers Suppliers Suppliers Card providers Card providers Card providers Postal Provider Postal Provider 12 3

14. Fraud Related IssuesPhase C – Purchasing Poor Quality Goods are sold by Suppliers • Suppliers offer and sell goods that are below the standards laid down by the Home Access Supplier Accreditation Agreement How will it happen? • Suppliers attempting to increase their profit, offer goods that are below standard • Product Manufacturers reduce the quality of equipment that has been approved for HA Risks – monetary and reputational • HA Grants are redeemed against products that do not fulfil Home Access requirements Mitigating policies • Mystery shopping will be used to establish whether this is occurring • Grant funding will be clawed back if mis-selling is detected • Suppliers will be removed from the Approved Supplier Register • Adopting a robust complaints process will provide evidence of dissatisfaction 13

15. Home Access Incidents 14