Procurement Fraud

Prevent Procurement Fraud

Procurement fraud occurs when there is intentional deception within the procedure-to-pay process that develops in some type of financial gain, or loss. It is one of the oldest types of fraud and one that costs businesses billions of dollars every year. A prime example of procurement fraud is when an employee conspires with an outside supplier to defraud the employer in a number of ways to receive some sort of kick back or other benefits in exchange for their assistance. Another example of procurement fraud is when an employee establishes a dummy company in the company’s systems and then works to steal from the employer via fraudulent contracts, invoices, and/or payments. Even if there is no gain, it is still considered procurement fraud. 

 

Preventing procurement fraud should be a priority for all organizations. And if you want to learn how to prevent procurement fraud, contact REL Alliance. Here at REL Alliance, we offer workshops and training to help protect your business and enhance the employee experience.