Refers to some type of “thing of value” going back to the vendor, Using Agency or a Procurement Official.
What are Kickbacks?
100
A typical organization loses this percentage of revenue to fraud on an annual basis.
What is 5%?
100
Must exist in the authorization of purchasing expenditures, custody of assets and reporting of transactions.
What is clear segregation of employee duties?
100
The acronym for the Association of Certified Fraud Examiners.
What is the ACFE?
100
The largest behavioral red flag of fraud.
What is living beyond means?
200
When an insider manipulates the bidding process in a number of ways to benefit a favored contractor or supplier… this can include accepting late bids, changing bids, re-bidding work, etc.
What is Bid Manipulation?
200
With clean employment histories... Most occupational fraudsters.
What are first time offenders?
200
The most effective fraud reporting mechanism.
What are Anonymous Tip Lines?
200
The “use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets”.
What is Fraud?
200
The second largest indicator of possible fraud.
What is Financial Difficulties?
300
Describes when a procurement official splits a single purchase into two or more purchases for the sole purpose of each purchase being below upper level review or competitive bidding thresholds.
What is Split Purchase?
300
Pose the greatest risks to organizations throughout the world.
What is Billing (and corruption) schemes?
300
A critical component of a well rounded program for preventing and detecting fraud.
What is Fraud awareness training?
300
A three sided diagram representing these motivations: Opportunity – Rationalization – Pressure.
What is the Fraud Triangle?
300
The average fraud cycle before being detected.
What is 18 months?
400
When a procurement official knowingly allows a contractor to submit a “low” bid without any margin of profit, because of an agreement to issue post-award change orders.
What is Change Order Abuse?
400
The number of victimized organizations which do not recover any of their fraud losses.
What is nearly half?
400
An example of a manual which defines what is expected of all employees, regardless of position and includes the following statement “All individuals shall protect the County’s assets and reputation through professional and personal conduct that is above reproach”.
What is a code of conduct such as the County Ethics Handbook?
400
A scheme that poses the greatest risks to organizations throughout the world... more than 50%.
What is corruption and billing?
400
The greatest prevention method organizations have available to employees.
What is the Tip Hotline?
5-5257
500
When an insider deliberately writes a non-supportable sole source justification to avoid a competitive selection process.
What is Unjustified Sole Source?
500
The most common red flag behavioral indicator often associated with fraudulent conduct.
What is living beyond ones means?
500
Should not be relied on as an organizations primary fraud detection method.
What are External Audits?
500
Intentional submission of goods and/or services that do not conform to the contract specifications or requirements.