Ingenium Consulting Chicago can assist with procurement fraud investigations.

The PwC Global Economic Crime Survey 2014 showed 29 per cent of organizations had experienced procurement fraud, and it was most common at the vendor selection stage, followed by the bid process.

The sectors reporting the most procurement fraud were state-owned enterprises, followed by energy, utilities and mining; engineering and construction; and transport and logistics.

The report, which is the first to include procurement as a separate fraud category, said three trends were driving this type of wrongdoing. These were an increase in public tender processes, companies altering their global supply chains, and a rise in outsourcing.

The report said: “In our experience, the requisitioning of goods is a ripe area for fraud. The threat is especially great in cultures where loyalty to family, schoolmates, local community or even national pride is strong influences, stronger perhaps than dry corporate policy statements or legalistic sounding codes of conduct.”

The rise in contract management and the outsourcing of goods and services has created an increase in procurement fraud, which can occur at any stage of the contracting and procurement process. Appropriate controls, fraud prevention strategies and proper tendering processes are necessary in the fight against this fraud.

Organizations can be defrauded through collusion among bidders, between employers and contractors, and by sole procurement employees. Consequently, you need to be aware of the vulnerabilities and risks associated with fraud schemes that attack the purchasing, procurement and contract functions.

The professionals at the Ingenium Consulting Chicago have the knowledge, skills and techniques you need to prevent, detect and deter these devastating frauds. Call us for a no obligation consultation.