3. Procurement
Fraud
Procurement fraud is any fraud relating to a
company purchasing goods, services or
commissioning construction projects from third
parties. Fraud can happen when the tender
process has not been followed so that fraud can be
committed, or when there is bid rigging.
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5. Kickbacks and
Corrupt Payment
Payoffs is one of the most common types of
procurement frauds.
Getting in the way of competitive bidding, they
design tenders in such a way that only one supplier
can win the bid and benefit from the order.
For this to happen, one or more employees from the
purchasing end are involved in securing orders from
specific suppliers that they receive kickbacks.
These kickbacks can be in the form of cash, personal
discounts, or even prizes.
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7. Corruption can affect everything from licenses to
contracts to lawsuits. Corruption means that business
deals often contain hidden prices, competition is not
what it seems, and partnerships are chosen for the sake
of expediency rather than quality.
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9. Often also referred to as “bid-rigging” which is an illegal
agreements between economic operators, with the aim
of distorting competition in award procedures.
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10. Billing Fraud
Billing schemes occur when an
employee causes their employer to pay
fictitious invoices, by creating fake
invoices that never existed, inflating
prices, duplicating invoices, or by
purchasing personal items and
submitting the invoice to their employer
for reimbursement.
11. Conflict of
Interest
A conflict of interest occurs when an
individual's personal interests – family,
friendships, financial, or social factors –
could compromise his or her judgment,
decisions, or actions in the workplace.
Government agencies take conflicts of
interest so seriously that they are
regulated.
12. Delivery Fraud
Often called as “Shipping fraud” occurs
when a buyer spoofs a shipping address
or when a seller receives payment for
goods or services, but never ships to the
buyer. Shipping fraud can come in many
forms including when a customer uses a
stolen credit card to make an online
purchase.
