Fraud and
Corruption
Quick Reference Guide
Contents
Introduction .............................................................................................. 3
Corruption ................................................................................................. 3
Causes of corruption ....................................................................................................... 4
Common risk areas ......................................................................................................... 5
Detecting fraud and corruption ................................................................. 5
Conflict of interest ..................................................................................... 7
3-step process: Identify, disclose, review ................................................... 7
Identify ........................................................................................................................... 7
Disclose ........................................................................................................................... 7
Review ............................................................................................................................ 8
Reporting ................................................................................................... 8
Adelaide University / Fraud and Corruption / Quick Reference Guide
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Introduction
As an Adelaide University employee, you are a public officer under South Australian law, which gives you an
important role in protecting our institution and the public interest. Understanding how fraud and corruption
occur is key to prevention.
Corruption
Corruption refers to the abuse of entrusted power for private gain (Transparency International, n.d.), and can
take many forms – including fraud, bribery, extortion, theft, misappropriation, nepotism, and cronyism.
In practice, corruption involves misusing your role or authority to benefit yourself, your family, associates, or
even your organisation, rather than acting in the public interest. It also includes enabling or supporting others
to do the same. Often it can be disguised as routine business practices or framed as simply "helping someone
out." Knowing what to look for is the first step toward prevention.
Type
Definition
Examples
Fraud
The act of deliberately
deceiving others to dishonestly
obtain benefits, advantages, or
personal gain, which causes
harm or detriment to the
University.
• Using deception to obtain money, property or other
benefits
• Falsifying timesheets to claim pay for unworked hours
• Using university equipment or facilities for personal
benefit
• Claiming reimbursement for personal trips or fake
expenses
• Forging documents or signatures
• Falsifying records or misrepresenting qualifications
• Claiming qualifications or experience not held
• Fabricating or falsifying research data to obtain grants,
publications, or career advancement.
Bribery
Offering or accepting benefits
to influence decisions made in
your official capacity or
offering rewards to influence
someone else's official duties.
This applies to public officers
and officials in any jurisdiction.
It doesn't have to involve
money, and both giving and
receiving are illegal.
• Facilitation payments: offering unofficial, small
payments to government or public officials to secure
administrative outcomes or speed up routine
government activities. (While some countries may
consider these payments customary or normal business
practice, there is an international trend to eliminate
them, and many jurisdictions now classify facilitation
payments as bribery under law.)
• Accepting gifts that could influence procurement
decisions
• Trading favours for preferential treatment.
Extortion
Using threats to force others to
give up money, information, or
services.
• Blackmail targeting individuals for personal gain
• Threatening to harm a business's operations or
reputation to force compliance with demands
• Using position to demand payments from vendors.
Theft or
misappropriation
Theft or misappropriation of
funds or property by a person
in a position of trust. Unlike
fraud, this involves taking
money or assets you already
have lawful access to because of
your role, rather than using
deception to obtain them.
• Diverting organisational funds for personal use
• Unauthorised personal use of university resources
• Selling or transferring university assets for personal
benefit
Nepotism and
cronyism
Preferential treatment given to
relatives or friends in hiring,
promotions, or awarding
contracts.
• Hiring unqualified family members for staff positions
or consultancy roles.
• Awarding contracts to a relative's over-priced business.
• Awarding a promotion to a friend over a more
deserving colleague.
Adelaide University / Fraud and Corruption / Quick Reference Guide
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Causes of corruption
Understanding the cultural, organisational and psychological factors behind fraudulent and corrupt behaviour
is essential for developing effective prevention strategies. The most recent model by Roffia and Poffo
incorporates seven factors.
Factor
Definition
People Leaders
Staff
Opportunity
Occurs when there are weak
internal controls, lack of
oversight, or a culture of
complacency, allowing unethical
actions to go undetected.
Ensure clear, transparent
processes, avoid singleperson control over
sensitive tasks, keep proper
records and conduct
regular checks.
Report control
weaknesses or gaps,
follow procedures
carefully, and avoid
bypassing steps even
under pressure.
Pressure
Arises from financial stress,
unrealistic targets, or personal
pressures that create incentives to
bend the rules, such as meeting
goals, hiding poor performance,
funding addictions, or dealing
with debt.
Promote a healthy worklife balance, address issues
early and foster a culture of
psychosocial safety.
Seek support if under
pressure (e.g. EAP),
raise concerns early,
and ask for workload
adjustments if needed.
Rationalisation
Happens when individuals justify
their actions to themselves with
thoughts like “I deserve this,”
“everyone does it,” or “no one’s
getting hurt.”
Promote a strong ethical
culture and challenge
casual rule-bending,
address even minor
breaches to avoid setting a
precedent, build
confidence in speaking up.
Challenge your own
thinking, ask, “Would I
be okay if this were
public?” and seek a
second opinion if
unsure.
Ability
Involves having the knowledge,
access, or technical skill to
manipulate systems, hide
misconduct, or exploit loopholes
without detection.
Be alert to employees who
are tech-savvy or know the
systems deeply but resist
oversight or insist on
working alone.
Use your access
responsibly, stay within
your role’s permissions,
and report any system
vulnerabilities you
notice.
Ego
Comes into play when someone
feels entitled, above the rules, or
believes their contributions
outweigh the harm caused by
unethical behaviour.
Create a culture of humility
and accountability –
recognise effort, not just
results, and don’t tolerate
“star performers” who act
above the rules.
Reflect on your own
motivations, accept
feedback, and stay
grounded in team goals
rather than personal
status.
Collusion
Occurs when multiple people are
involved, which diffuses
responsibility and makes
individuals feel less personally
accountable.
Encourage a speak-up
culture, conduct
independent reviews, and
never assume misconduct
can’t happen in teams.
Don’t look the other way
– report unethical group
behaviour, and support
colleagues who raise
concerns.
Risk-taking
Emerges in people who enjoy
pushing limits, or in workplace
cultures that reward aggressive
behaviour, shortcuts, or rulebending to get results.
Reward ethical process, not
just fast results. Clarify
acceptable risk boundaries
and discourage cutting
corners.
Pause and evaluate
before taking shortcuts
– ask yourself if the gain
is worth the risk to your
integrity and career.
Roffia, P., & Poffo, M. (2025). Revisiting the Fraud Triangle in Corporate Frauds: Towards a Polygon of Elements. Journal of Risk and
Financial Management, 18(3),156. https://doi.org/10.3390/jrfm18030156
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Common risk areas
•
•
•
•
•
•
•
•
•
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Procurement, contracts, financial transactions
Recruitment, payroll
Capital works projects, property management and maintenance services
Intellectual property and confidential information
International engagement, including recruitment of overseas students
Admissions and grading
Research funding and grants
Scholarships, bursaries and financial aid
Commercialisation of university research and technology
Partnerships with industry and government
Detecting fraud and corruption
Despite prevention systems, fraud often goes undetected for months (typically 12 months) because:
•
•
•
•
•
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Staff don't recognise early warning signs
People are unsure how, when, or to whom they should report concerns
Initial suspicions are dismissed as administrative errors
We give colleagues the benefit of the doubt
Fear of being involved in investigations makes us want to ignore concerns
We're reluctant to believe a colleague could be involved
The University employs numerous strategies at local and organisational levels to prevent, detect and respond to
misconduct, fraud and corruption. However, these systems also rely heavily on staff awareness and reporting in fact, 43% of fraud cases are detected through reporting, mostly from other staff (Association of Certified
Fraud Examiners, 2024).
Staff who receive fraud awareness training are twice as likely to report concerns. Raising a concern does not
necessarily mean you will need to be involved in an investigation. Reports can be made anonymously, and your
role is simply to raise the concern so it can be assessed appropriately.
That's why your interest in understanding and recognising the signs of fraud and corruption is invaluable in
safeguarding the University and its community.
Adelaide University / Fraud and Corruption / Quick Reference Guide
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Red flags
The strongest behavioural predictors of fraud are living beyond apparent means and experiencing financial
difficulties.
Red flags provide early warnings and are usually detectable through:
•
•
•
Unusual activity or sudden behavioural changes
Anomalies in documents or transactions
Routine audits
Financial anomalies
Behavioural changes
Financial and lifestyle
indicators
Documentation and process
issues
• Inflated numbers
or strange
variations across
similar time
periods
• Fewer or more
items than
expected
• Transaction
codes and
descriptions that
don't match
• Unexplained
increases in
spending
• Multiple
transactions just
below approval
thresholds
• Controlling, secretive,
suspicious or defensive
behaviour
• Unwillingness to share duties or
information
• Avoiding engagement with
others or warning others off
• Refusal to take vacations or
working excessive hours
• Resisting duty rotation or role
changes
• Unusually close relationships
with vendors/customers
• Sudden resignation or
unexplained failure to attend
work
• Overriding controls or seeking
exceptions
• Living beyond
apparent means or
unexplained lifestyle
changes
• Financial difficulties
or complaints about
inadequate pay
• Excessive spending
or sudden changes in
demeanour
• Addiction problems
or major personal
issues (divorce,
family problems)
• Reluctance to
disclose financial
interests
• Missing documents or
stock
• Unauthorised changes to
records or unusual
contract variations
• Unwillingness to
cooperate with audits or
unusual delays in
providing information
• Transactions without
documentation or made
outside office hours
• Credit card payments
split over multiple
transactions
• Excessive use of sole
suppliers and/or limiting
tendering justification
Association of Certified Fraud Examiners. (2024). Occupational fraud 2024: A report to the nations. https://www.acfe.com/report-to-thenations/2024/
Adelaide University / Fraud and Corruption / Quick Reference Guide
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Conflict of interest
An unmanaged conflict of interest is often the gateway to more serious forms of misconduct and corruption.
Recognising and effectively managing these situations is your first line of defence in maintaining integrity and
preventing more serious breaches.
Having outside interests is normal. The risk lies in how we handle overlaps between those interests and our
work. Conflicts of interest come in three forms.
•
Actual: when your personal interests clash with your university duties.
•
Perceived: when it looks like your interests might be influencing your decisions. This can be just as
serious as the real thing. By disclosing it, something that may seem secretive or suspicious can shift to
being transparent and professionally managed.
•
Potential: when your private interests could influence future actions or decisions.
When conflicts aren't identified and managed, three things suffer.
•
Integrity of our decision making
•
Reputation, both personal and institutional
•
And trust from students, partners, and the public.
Left unchecked, some conflicts can even breach legislation.
Conflicts of interest aren't unusual. But unmanaged conflicts are unacceptable. Making sure you identify,
disclose and manage every conflict, every time.
3-step process: Identify, disclose, review
Identify
Download the Conflict of Interest checklist to identify your potential conflicts.
Disclose
The approach to managing conflicts varies depending on the situation. For some conflicts, it may only be
necessary to register the conflict to maintain transparency. For many conflicts actions like restricting your
involvement or recruiting a third party to oversee the matter will effectively manage your conflict. In rare
circumstances it may not be possible to effectively manage the conflict, and it may be necessary to relinquish a
private interest or resign from your employment. Consider the 6 R's.
Register
All conflicts must be registered to maintain transparency and to
ensure that the management plan is adequate.
Restrict
Restrict your involvement by stepping back from conflicted parts of
the process when separation is possible and conflicts are infrequent.
Recruit
Recruit an independent third party to oversee the conflicted matter
when you cannot be removed or your expertise is irreplaceable.
Remove
Remove yourself completely from the matter when conflicts are
serious and ongoing, and other management strategies won't work.
Relinquish or Resign
In rare circumstances where a conflict cannot be appropriately
managed, it may be necessary to relinquish the private interest or
consider changes to your role or responsibilities.
All conflicts require a management plan. This should be developed in consultation with your People Leader, and
your conflict officially disclosed, and management plan recorded by completing the following form.
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Review
To review your conflict of interest, consider the following:
•
•
•
Am I following the plan properly?
Have circumstances changed?
Is the plan still working effectively?
Remember, you need to review your conflicts of interest annually, as well as declaring them as soon as they
arise.
Reporting
Note
As a public officer you must report to the Office for Public Integrity any matter you reasonably suspect
to be corruption. You are also expected (but not required) to report suspected misconduct or
maladministration.
To report:
•
•
You don’t need direct evidence of wrongdoing to form a “reasonable suspicion”
Your concern should be based on facts or observations – not just a feeling
If you are unsure about reporting:
•
•
Contact the Office for Public Integrity for guidance
You can report anonymously
You can also raise concerns about inappropriate behaviour by contacting the Integrity Unit.
You should avoid:
Conducting your own investigation
Discussing your suspicions with colleagues
While you should document what you've observed or
been told, gathering additional evidence can
introduce personal bias, expose you to professional,
legal, or personal risk or put you in direct conflict
with the suspect.
This can breach confidentiality, undermine due
process and interfere with formal investigations. It
may also spread rumours that could lead to claims of
defamation so it’s best to always report cases through
official channels.
We understand that reporting concerns can feel daunting, but your safety and confidentiality are a priority. The
University's Public Interest Disclosure Policy provides protections and confidential reporting options. You can
find further information here.
Further reading
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Fraud and Corruption Prevention and Control Policy
Corporate Credit Card Procedures
University Code of Conduct
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Published January 2026