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Be a Fraud Fighter!

Governor Dayton issued a proclamation declaring November 11-17, 2018 Fraud Awareness and Prevention Week. During the week, we explore five high value actions to fight fraud. But before you act, each day we help you see how:

  • Fraud can happen anywhere;
  • Fraud costs you, your agency, and the state; and
  • Fraud awareness and prevention is the responsibility of every state employee.

Explore our website and help to Fight Fraud!

Daily Fraud Fact for Wednesday: Fraud Impacts Everyone.

Fraud against government is an expensive burden.

Yesterday’s Daily Fraud Fact pointed out government organizations are frequent targets and victims of fraud.  If fraud occurs in our state government, all taxpayers, state employees, and state agencies feel the impact, in both financial and non-financial terms.  The Association of Certified Fraud Examiners (ACFE) projects the median loss per fraud within any organization, government or other, is about $150,000, with 23% of all reported fraud cases causing losses of $1 million or more. Fraud against government entities can result in:

  • Loss of public funds and resources
  • Diversion of resources to investigate the causes of the fraud and how to prevent future recurrence
  • Increased cost of government services
  • Increased fees and taxes
  • Less money available for government operations (e.g., employee pay increases, training and staff development, new technology)
  • Significant expense associated with the investigation, prosecution and incarceration of convicted fraudsters

Beyond financial consequences, fraud can devastate an agency and its employees. Non-financial consequences of fraud can include: 

  • Negative news and bad publicity
  • Decreased confidence in public officials
  • Increased scrutiny and/or sanctions
  • Inability to meet organizational goals
  • Tarnished reputations
  • Low employee morale

Take action to prevent, detect and report fraud.

Prevention is the most efficient and effective way to fight fraud.  Good fraud prevention includes recognition of the financial and non-financial impacts that fraud perpetrated against Minnesota government has on all taxpayers, state employees, and state agencies.  Once you know of the costs, take action today to fight fraud. Sound fraud awareness and prevention training can help you recognize how internal controls prevent costly fraud.

Check back tomorrow for why taking action on fraud is everyone's responsibility.

Thank you for taking action to prevent fraud in Minnesota State Government.

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