NST. PAUL – Despite Minnesota seeing $9 billion in fraud, progress in the Minnesota House that would address this taxpayer theft has been far too slow according to State Representative Paul Torkelson (R-Hanska).
“There are always many topics discussed where people wonder if legislative action can make a difference,” Torkelson said. “In Minnesota, the legislature can make a significant difference on fraud activity in the future, but it must be willing to act. To date, one side is very eager to address this problem, the other side is not.”
Torkelson references a plan that would create an independent Office of the Inspector General (OIG) that would investigate fraud in our state. The legislation would establish the OIG and give it real investigative powers and enforcement authority. Most importantly, it would not be controlled by the Governor’s Office.
Last session, this bill, carried by a…
CLICK HERE to read the FULL REP. TORKELSON: SLOW PROGRESS IN HOUSE ON ANTI-FRAUD MEASURES article.
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.