Inspector General Makes the Case for Combatting Fraud, Waste and Abuse
Volkswagen’s 2016 “diesel dupe” is a classic case of fraud. VW felt pressure to expand its diesel products into the American market.
Special software was developed on certain makes and models of VW diesel cars to defeat emissions tests. Consequently, VW implemented an illegal solution to make its product appear more emissions-friendly than it was.
The end result led to fines, firings, penalties and car buy-backs in the billions of dollars.
During the next few months, the Exchange’s Office of the Inspector General (IG) will offer information about fraud, waste and abuse to bring awareness to these topics. We will discuss ways to mitigate or eliminate the threats that could be in your workplace.
The IG Hotline operates for customers and associates to report instances of fraud, waste and abuse. The hotline has become a clearinghouse for all issues.
To be fully compliant with Department of Defense policy, a primary focus for the hotline is fraud, waste and abuse.
What is fraud?
The Association of Certified Fraud Examiners states, “Fraud includes any intentional or deliberate act to deprive another of property or money by guile, deception or other unfair means.”
Subsequent Exchange Post articles will explore specific details and definitions of waste and abuse.
Safeguards
What safeguards do we have to prevent something like Volkswagen’s fraud from occurring at the Exchange? We implement enterprise-wide internal controls specifically to mitigate risk associated with fraud, waster and abuse and safeguard Exchange assets.
So what is the best internal control to help prevent these things from happening? Check the Exchange Post next month for the answer and tips to keep your workplace compliant and efficient.
Did you know?
- The primary means of detecting fraud, waste and abuse is from a tip. The Exchange IG Hotline provides a confidential way for associates and customers to bring allegations to our attention.
- Multiple EOPs remind us of our responsibility to report information about fraudulent or unlawful/improper activities to the appropriate level in the chain of command or to the Office of the Inspector General.