When Republicans in Congress were developing the Working Families Tax Cuts (WFTC) last year, members from across the conservative spectrum signaled their intention to offset new spending and revenue loss by reducing government spending. This is easier said than done. Programs throughout the federal government are saddled with unneeded spending, with many taxpayer dollars going to unintended recipients, fraudsters who skim money that is meant for others, and some Americans who simply don’t need the money. Assessing the scale and scope of these issues can be difficult, partially due to obfuscated government data reports. Once a problem is identified, it can be very hard to fix, thanks to entrenched special interests who benefit from this government largess. As a result, it takes real fortitude to do the work needed to actually cut waste, fraud, and abuse. But the Working Families Tax…
This category refers to crimes committed by employees or insiders against their own organizations. It is often the most damaging because the perpetrator has authorized access to systems.
- Asset Misappropriation: The most common form, involving the theft of company resources. This ranges from simple “skimming” (taking cash before it’s recorded) to complex schemes involving the theft of inventory or intellectual property.
- Payroll Fraud: Employees may create “ghost employees” on the system, falsify their own timesheets to claim unworked overtime, or divert salary payments to their own accounts.
- Financial Statement Fraud: Management deliberately misrepresents the company’s financial health by inflating revenue or hiding liabilities to attract investors or meet performance bonuses.