Friday: The Cost of Fraud
Fraud is not a victimless act. When it occurs in the public sector, the consequences go far beyond dollars lost. Fraud diverts critical resources away from the programs and services that the public relies on. It can damage the public’s trust, weaken the ability to deliver services effectively, and can cause reputational harm. The financial costs are significant, but the non-financial impacts—lost credibility, diminished morale, and erosion of integrity—can last for years. Preventing and addressing fraud is not only about protecting money, but also it is about protecting the trust placed on public servants.
Reporting Suspicious Activity
You can help protect State dollars and the trust Minnesotans place in us by reporting instances of potential fraud and misuse of State resources. There are several ways to report suspicious activity:
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Resource |
Fraud Reporting Details |
|---|---|
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Agency-specific |
Understand your agency’s fraud reporting resources and processes. In some cases, hotlines or other anonymous channels exist, or employees can report concerns to supervisors, senior management, legal, and human resources. Management must be ready to assist. Agencies are required to report to the MN Office of the Legislative Auditor (OLA), the MN Bureau of Criminal Apprehension (BCA), and the MN Department of Revenue (DOR). |
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MMB Internal Controls |
Fraud reporting resources for employee fraud, consumer fraud, and cyber fraud are available on MMB’s Internal Control & Accountability Fraud Reporting webpage. |
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MN Office of the Legislative Auditor (OLA) |
The Office of Legislative Auditor’s website offers an online or printable allegation form to report possible misuse of state money and other public resources. |
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MN Bureau of Criminal Apprehension (BCA) |
The BCA’s Financial Crimes and Fraud section can be reached by phone, fax, email, or mail to share information. |
Closing Thoughts
Remember, awareness is not just important during Fraud Awareness and Prevention Week. Continue your efforts week after week! Fraud can occur anytime and anyplace and demands continuous attention. Enhance our fraud defenses by taking proactive steps throughout the year, attending and participating in anti-fraud training, and working together to report and address fraud and misuse of resources.
Contact the MMB Internal Control and Accountability Unit for more information on trainings, risk assessment development, control activities, monitoring ideas, and other key information.
Thank you for participating in the 2025 Fraud Awareness and Prevention Week, and for your continued efforts throughout the year to protect our state’s resources!
Resources
Review these resources for more information on reporting fraud and creating a fraud-aware culture.
- Code of Ethical Conduct Policy
- 2024 ACFE Fraud Report to the Nations
- Fraud & Improper Payments | U.S. GAO
- New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024 | Federal Trade Commission
About ICA
Minnesota Management and Budget’s Internal Control and Accountability Unit (ICA) offers resources, training, and consultation for executive agencies to prioritize and document their internal control systems. The unit offers content for Fraud Awareness and Prevention Week for the twelfth consecutive year, aligning with the Association of Certified Fraud Examiners (ACFE) annual International Fraud Awareness Week.