Richmond Council is facing an escalating threat from sophisticated fraudulent activities, particularly those enhanced by artificial intelligence.
This warning was delivered to the council's Audit, Standards and Statutory Accounts Committee by Kevin Holland, Assistant Director of Fraud, Risk & Insurance.
Holland explained that AI is reducing the complexity and effort required for criminals to execute elaborate scams, allowing for greater scale and impact. Criminals are leveraging AI to generate realistic-looking fake documents and transactional data to support fraudulent applications for Council services, and are also using it to assist with false digital identity fabrications. The council is particularly concerned about risks in areas such as housing and tenancy fraud, council tax and benefits fraud, procurement fraud, grant fraud, adult social care fraud, payroll fraud, permit fraud, cyber-enabled fraud, and insider fraud.
The South West London Fraud Partnership (SWLFP), which includes Richmond and four other boroughs, is on track to achieve a 95.2% completion rate for its fraud plan for 2026/27. So far this financial year, 141 fraud cases have been investigated, resulting in 35 cases closed with sanctions. The partnership has identified or prevented overpayments and achieved notional savings totaling £651,287.
Specific initiatives are targeting housing fraud, including illegal subletting, succession fraud, misrepresentation of household circumstances, and the improper use of temporary accommodation. Verification visits are being carried out, and three placements have already been terminated due to issues with their validity.
To combat these evolving threats, the SWLFP is prioritising data analytics and data cleansing, and utilising the London Fraud Hub. The partnership is also actively exploring the application of AI for both detecting and preventing fraud. This includes using AI to enhance investigation effectiveness and assist with approaches on prioritization and detection to achieve more efficient use of resources. The fraud service is gearing up for the AI-assisted fraud threat, recognising it as both a threat and an opportunity. Furthermore, mandatory online fraud awareness training is being updated to address the latest criminal tactics.
More information on the council's audit progress can be found in the Public reports pack for the Audit, Standards and Statutory Accounts Committee meeting on 20 October 2026 Public reports pack Tuesday 20-Oct-2026 19.00 Audit Standards and Statutory Accounts Committee.