// Fraud schemes
Procurement integrity
Conflicts of interest, kickbacks, bid rigging, and purchasing and receiving schemes.
Billing — non-accomplice vendor (overbilling, pay-and-return, duplicates)
The employee uses a real vendor that is not part of the scheme. Methods include resubmitting a paid invoice, inflating an invoice, or deliberately overpaying or double-paying the vendor and…
S17Purchasing and receiving schemes
An employee orders more than is needed and keeps the excess, records goods as received short or damaged and keeps the difference, or accepts goods without a purchase order so…
S20Conflict of interest — purchasing
An employee with an undisclosed financial or personal interest in a vendor uses their position to benefit that vendor: steering awards, approving inflated or unneeded purchases, or avoiding competitive procurement.
S22Bribery — invoice kickbacks (including illegal gratuities)
A vendor pays an employee to approve inflated or fictitious invoices or to steer business to the vendor. In the gratuity variant, a payment or gift is given after an…
S23Bribery — bid rigging and procurement manipulation
An employee manipulates the procurement process for a favored vendor, or vendors coordinate their bids among themselves. Methods include tailoring specifications, leaking competing bids, splitting purchases to avoid bid thresholds,…