Fraud Indicators in Procurement and Other Defense Activities

Acknowledgements

Fraud, Waste, and Abuse Defined

Matrix of Professional Guidance

Fraud Guidance

Scenarios and Indicators

Fraud Statistics

• Hotline
• DCIS

Fraud Resources

Fraud Schemes and Related Terms

Procurement Fraud Toolkit

Useful Links

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Fraud Indicators in Procurement and Other Defense Activities

Scenarios and Indicators

Financial Statements

• Improper Disclosures-Subsequent Events
• Improper Revenue Recognition
• Concealed Liabilities and Expenses

Labor Costs

• Labor Substitution

Billing Systems and Related Reviews

• Financing Inventory – Material Transfers

Indirect Costs

• Ownership Costs versus Commercial Service Costs

Contracting

• Contract Progress Reports
• HUBZone Contracts
• Missing Documents and Independent Government
  Estimates
• Service Disabled Veteran-Owned Business
• Illegal Gratuities
• Overbilling

In Theatre Operations

• Construction Failure
• Emergency Relief Supply Fund
• Foreign Service National Fraud
• Multiple Subcontractors
• Fraudulent Invoices
• Unusual and Compelling Authority
• Inherently Governmental Functions
• Suspect Invoices Charges
• Fuel Accountability

Travel/Payroll

• Travel Fund Embezzlement
• Invalid Travel Receipts
• Excessive Overtime Fraud
• Military Pay
• Duplicate Payroll Charges
• Separated Employees
• Ghost Employee

Worker’s Compensation

• Pre-existing Medical Condition, Failure to Notify of Change in Benefit Status, Physician Filing Phony Insurance Claims

Asset Misappropriation

• Excess Inventory
• Treasury Checks
• Billing Scheme
• Check Tampering-Forged Maker
• Expense Reimbursement
• Authorized Maker

Base Allowance for Housing

• Temporary Change in Station
• Base Allowance for Housing
• Leases

Retail Operations

• Black Market Sales
• Coupon Fraud – Store Director Misusing Vendor Coupons, Large Coupon to Sales Ratio, Excessive Coupon Refunds
• Customer Refunds and Incomplete Sales Transaction
• Food Discounts
• Inventory Theft

Healthcare

• Billing for Service not Rendered
• Duplicate Payments
• Eligibility Fraud
• Overseas Healthcare Payments
• Unbundling
• Upcoding

Purchase Card

• Shell Company and Suspect Purchases