Stimulus Fraud Could hit $50 Billion. How could CCM-T help?

MarketWatch article quotes FBI Director Robert Mueller about the potential fraud risks related to Stimulus money. "These funds are inherently vulnerable to bribery, fraud, conflicts of interest and collusion. There is an old adage, that where there is money to be made, fraud is not far behind, like bees to honey," Mueller told an afternoon gathering of business executives.

In reviews of duplicate payments / overpayments, using CCM-T technology from Oversight, Apex Analytix, and/or ACL, we typically find an error rate of 0.1 to 0.5%, or approximately $1,000 to $5,000 for every million in spending.

Fraud statistics from FBI and ACFE suggest higher losses. Often much higher. Our experience is that the fraud losses are harder to detect, especially without more sophisticated automation provided by CCM-T. But the risk is clearly there. And reputation risk may be greater than the financial loss.

Ask your internal audit or general counsel what your firm is doing to proactively find fraud, waste, and errors in your Accounts Payable and P-Card spend. If you don't like the answers - call us. We can help.