In my capacity as Commercial Director, I speak often to anti-fraud teams in the public sector. Local councils, government departments , auditors – all seem to be saying the same thing: fraud is up, and legacy tools aren’t keeping up. This, of course, comes as no surprise. There’s a reason why around 4–7% of government spending has historically been put towards tackling fraud.
Perhaps the more interesting part is the source of fraud risk that’s been coming up more and more frequently. The culprit? Public sector suppliers.
I’ve seen contractors win public sector work while hiding serious financial distress. Some are linked to dissolved firms, failed projects, or directors with patchy histories. Others subcontract to shell companies that quietly disappear once the money’s moved. When a supplier collapses mid-project, it’s more than a budget issue. It’s service disruption, reputational damage, and a missed opportunity to act earlier.
That’s the frustration that comes with it: “We could have seen this coming.”
But too often, due diligence stops at contract award. Or it’s done manually, once a year, by an overstretched team. Meanwhile, fraudsters move quickly, exploiting gaps between systems, hiding behind group structures, and gaming fragmented processes.
The public sector can’t keep plugging these holes with spreadsheets and good intentions. There’s an urgent need for bespoke tools that help frontline teams spot supply chain risk in real time, not months later when it’s already gone wrong.
Interestingly, the councils getting ahead of this aren’t throwing tech at the problem. They’re choosing partners who understand public sector pressure, who can help them make earlier, better-informed decisions.
Catch fraud early. Prevent major fallout.
Vigilance™ cuts through filings to surface real threats, fast. Scanning across five major risk zones – you can be sure nothing slips through the net.
Supplier management is your frontline defence against fraud
Grants and procurement remain two of the most exposed areas for public sector fraud. Councils are still managing the aftershocks of COVID-era business grants, where some claims slipped through the net entirely. On the procurement side, the risks range from inflated invoices and collusion between bidders, to conflicts of interest that go undisclosed until it is too late. The fraud isn’t always obvious. Sometimes it sits quietly in the supply chain.
That’s where the conversation is shifting. Fraud teams are rightly starting to treat supply chain risk as a core fraud exposure. When a contractor hides financial distress or past misconduct, the consequences go well beyond budget overspend. A stalled building project, a missed service deadline, a quiet reputational hit. These are the kinds of failures that damage trust.
That’s why Know Your Supplier (KYS) checks are no longer optional. It’s not just about ticking off Companies House lookups. It’s about understanding who you’re working with, who they’re linked to, and whether they’re stable enough to deliver. More departments are now embedding supplier risk analytics into their dashboards, with alerts that flag changes in directorship, financial health, or ownership structures in real-time.
If you’re already visualising risk in Power BI, think about what feeds that dashboard. Annual reports alone aren’t enough.
The key question isn’t just whether supplier management exists. It’s whether it gives you signals early enough to act.
As fraudster’s tactics get smarter, public sector teams need more than annual reviews and static reports. They need joined-up insight, practical tooling and clear, explainable alerts that work with how their teams actually operate.
The earlier you spot the risk, the less time you spend cleaning up after it. That’s where the right technology, and the right partner, makes the difference.
What “good” counter-fraud tech should deliver
Fraud teams need tools that work fast and fit in easily. Based on what I’m hearing across the public sector, here’s what good tech should deliver:
Fast results
Not a revolutionary insight, but definitely one that needs reiterating. New solutions should start delivering insights within weeks, not years. Teams want quick wins. For example, tools that can take last year’s claims data and flag suspicious patterns straight away. Cloud-based tools that work via G-Cloud or CCS frameworks are needed for rapid rollout.
Fits with existing systems
Integration needs to be simple. Buyers want tech that links easily with existing platforms; from HMRC and DWP data to local case management tools. Strong APIs and built-in connectors help reduce the IT burden.
Clear, defensible results
We’ve talked about quick results, but that means nothing if the data isn’t defensible. Fraud alerts need to come with clear reasoning rather than a black box. Teams need to know why a case was flagged, and be able to explain it in plain English.
This is why I rave about Vigilance™, our flagship fraud detection tool. Because it offers proactive insights across a range of targeted data points, from financial and statistical to behavioural and more, there’s very little room for guesswork or missed warnings. And that’s razor-sharp defensibility that I’ve rooted for throughout my career.
Proven ROI
Value for money matters. Tech should show real savings – whether that’s in recovered funds or reduced caseloads. Local authorities have historically reported strong returns on fraud investment. Good vendors should back up their claims with data and references. One recent case showed a threefold return on investment in just six months. That kind of impact matters.
Easy to use
Time and time again, our clients comment on how much they appreciate the ease of use of our fraud and data tools. I mention this only because I know how important ease of use is to buyers, and how much of an impact it can have on a team’s ability to tackle fraud quickly and proactively.
After all, the best tools empower investigators and officers without needing a data science degree. Dashboards, clear risk scores and visual graphs should make insights obvious. Support also matters – buyers appreciate partners who train teams well and offer ongoing help.
How can public sector teams choose a credible anti-fraud partner?
There’s a lot of noise out there. Every fraud tech vendor claims to be the answer. Some might be. Many won’t be. If you’re in procurement or risk in the public sector, here’s what I think is worth watching for.
Get the basics right
Security’s non-negotiable. If a supplier doesn’t have ISO 27001 or Cyber Essentials Plus, or can’t explain how they keep your data safe, that’s the end of the conversation. You want partners who treat security the way you do – seriously and without shortcuts.
Don’t make me jump through hoops
Having already undertaken the work to be included on G-Cloud or CCS frameworks, they know how to work with government buyers and have proactively removed obstacles to purchase. They understand budgets go up and down, and that you might need to start small. They’re not trying to lock you in before they’ve proven anything.
Have you done this before?
Has the supplier worked with councils like yours? Can they point to real outcomes? Not glossy decks – actual numbers, proper references. If they’ve built fraud models that work with UK benefits or procurement data, even better. You don’t want to be the first test case.
Don’t vanish after the deal is secured
This stuff’s complicated. Even the best software won’t deliver unless the vendor stays close. Do they help you tune it? Do they stick around when your needs shift? Or do they just drop the tech and move on? You want someone who treats it like a partnership, not a transaction. Regular training webinars, a dedicated account manager. Regular guidance and availability is key.
Speak human
No one wants another buzzword bingo session. If a supplier can’t explain what they do in plain English, how are users expected to get the most out of it? You need to know what it’ll do, how it fits in, what kind of support you’ll get – all without needing a translator.
Fraud’s not theoretical. The risks are real, the pressure’s on, and the margin for error is slim. The best partners get that, and they show up accordingly.
The fraud threat isn’t just about claims and benefits anymore. It’s increasingly coming from the supply chain. From contractors hiding financial trouble to shell companies slipping through procurement checks, vendor fraud has become one of the public sector’s biggest blind spots. And traditional tools aren’t built to spot it.
The most important question is: are you using tech that helps you truly know your suppliers?
Good fraud prevention tech should plug those gaps. It should surface early warning signs when a supplier’s financials dip, flag links to banned directors, and spot strange patterns and behaviours that are grounded in fact and data. All before contracts are awarded. The best systems connect the dots across your vendor base, using external data and credit signals, and make risk easy to understand for busy teams.
As you weigh up tools and tenders, ask the basics:
Can the platform flag supplier warnings in real time?
Does it integrate with our existing dashboards and workflows?
Is it cutting down false positives or creating more admin?
And can the supplier back up their value with real examples and references?
If the answer’s yes, you’re buying more than just software. You’re buying insurance against disruption, reputational damage and wasted spend, and a partnership that supports your objectives now and ongoing. And that’s worthy of a sizable budget going into next year.
