From the U.S. Government Accountability Office, www.gao.gov

Transcript for: FraudNet--Reporting Fraud, Waste, Abuse, and
Mismanagement of Federal Funds

Description: Fraud, waste, abuse, and mismanagement of federal funds can
cost millions of dollars. Learn what we mean by these terms, and how you
can report them through GAO's FraudNet.

Released: August 2017


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Fraud, Waste, Abuse, and Mismanagement
Know how to recognize and report them

Fraud! Waste! Abuse! These terms get thrown around a lot in Washington,
but what do they actually mean?

When people fraudulently spend, waste, abuse, or mismanage federal
money, it can cost millions of dollars. It can also cause the public to
lose faith in the government. You can help us find and stop these types
of activities. But first, you need to know what we mean by fraud, waste,
abuse, and mismanagement.

Fraud is trying to get something of value through willful
misrepresentation.

For example, inflating the number of hours billed to a federal agency
for IT support, underreporting income to receive federal subsidies for
food and housing, or selling fake or stolen electronics to an agency. 

Waste happens when someone squanders money or resources, even if it is
not illegal.

Such as, buying overpriced office equipment from a preferred vendor,
throwing out a federal agency's computers rather than donating them to
schools, or using federal funds to buy equipment for personal use or
gain.

Abuse happens when someone behaves improperly or unreasonably, or
misuses their position or authority.

For example, using a federal agency's computer to download sexually
explicit material, writing a contract that favors a specific contractor,
or buying digital music players for "official data storage."

Mismanagement is when someone creates a substantial risk to an agency's
ability to do its job.

Such as, continuing to pay utility bills for vacant office space or
renewing a technical support contract for software that an agency no
longer uses.

So, now that you know what it means to exploit federal resources, what
can you do about it? 

GAO has an easy and confidential way for you to report these activities.
For nearly 40 years, people have reported their suspicions to
FraudNet--GAO's fraud reporting hotline. FraudNet collects these reports
and sends them to the appropriate authorities, who then investigate and
resolve them. GAO will also sometimes follow up on these reports if they
relate to our own investigations.

The hotline has received thousands of allegations, some of which have
led to millions of dollars in savings (and other benefits) for the
government.

For example, FraudNet helped catch a small business that lied about
being owned by a service-disabled veteran to get $2 million in federal
payments. The culprit pleaded guilty to wire fraud, was sentenced to
federal prison, and had to pay almost $1.5 million in restitution.

In another case involving fraud, Fraudnet received information about
thousands of people who had claimed damages to the same property from
Hurricanes Katrina and Rita, which happened only weeks apart. FEMA had
made duplicate payments, one for each storm, totaling nearly $20
million. Fraudnet gave this information to a federal task force, which
resulted in multiple prosecutions.

If you suspect someone of fraudulently spending, wasting, abusing, or
mismanaging federal funds, report it!
Go to our website--www.gao.gov/fraudnet

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www.gao.gov/fraudnet

Together, we can help the government operate efficiently--and
potentially save millions of dollars.

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