September 21, 2026 – Defence Stories
Estimated read time – 1:56
Fraud can occur anywhere, including within the Department of National Defence (DND) and the Canadian Armed Forces (CAF). It may involve false claims, misuse of resources, procurement irregularities, or other deceptive activities resulting in personal gain. When fraud goes unchecked, it can cause financial losses, damage public trust, and compromise Defence programs.
The Fraud Risk Management Program (FRMP) (accessible only on the National Defence network) works proactively to detect, prevent, and reduce fraud risks across DND/CAF through data analytics, fraud risk assessments, awareness training, and other outreach efforts. However, preventing fraud relies on more than policies, controls, and technology.
Every Defence Team member plays an important role in protecting public resources and maintaining the trust Canadians…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.