The House Oversight and Government Reform Committee advanced nine bills designed to crack down on fraud in the federal government, including one that will implement anti-fraud training standards throughout the federal workforce.
“These sweeping legislative reforms will stop fraudulent payments before they go out the door and ensure critical taxpayer-funded programs work as intended,” said Chairman James Comer (R-KY).
The advancement comes as the Government Accountability Office (GAO) estimates that anywhere from $233 billion to $521 billion is lost annually by the federal government due to fraud.
Federal Fraud Prevention Workforce Training Act
The Federal Fraud Prevention Workforce Training Act (H.R. 8428) passed unanimously in committee.
It requires OPM to establish a governmentwide training program to ensure that the federal workforce can identify fraud risks, implement anti-fraud…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.