Combating Government Vendor Fraud: Are you Prepared?

December 27, 2012

Justice

(The following post is an excerpt form the excellent white paper Combating Government Vendor Fraud, by Certified Fraud Examiner Carl Knudson)

Vendor fraud by government contractors has been a significant problem for years, due in large part to the difficulty in identifying troublesome vendors prior to awarding multi-million dollar contracts. Furthermore, the very nature of government auditing programs is not a real-time process, but lags by months or years, which allows fraudsters a significant head start on crafting their schemes.
The Department of Defense’s report to Congress on contracting fraud dated January 2011 detailed hundreds of billions of dollars in criminal fines and civil sanctions against our country’s defense industry contractors. According to government analysts, government fraud,
waste and abuse may be as high as 5% of our nation’s GDP.

However, the advent of technology has substantially increased the government’s ability to detect and combat procurement and vendor fraud, false claims, and Medicare/Medicaid fraud through Web-based search engines that can query real-time data to ferret out obscure (but important) relationships on targeted information. Web-based search engines are equally important whether you are conducting a due diligence investigation on new vendors, or beginning a full-fledged investigation into possible fraud by a current vendor.

The two pillars of an effective fraud program relate to prevention and detection strategies.

For more insights on contractor fraud, you can view the full white paper Combating Government Vendor Fraud, by Certified Fraud Examiner Carl Knudson, and learn how new technology is helping government investigators detect and prevent procurement and vendor fraud. Carl Knudson has over 37 years of fraud investigative experience. He has worked in the Office of Naval Intelligence, for the CIA and as an IRS special agent in the Criminal Investigation Division.

Learn how CLEAR can help your organization Combat Government Fraud.