Part II: Knowing Your Tools

Recognizing Fraud

Fraud is any felonious act of corruption or attempt to cheat the government or corrupt the government's agents. Fraud may be committed either by government employees or by merchants. There are two responsibilities each cardholder has relative to fraud: You must be alert to the indicator of fraud and report suspected fraud immediately. Indicators of potential fraud by government employees include:

• Splitting requirements to get under the micro-purchase threshold
• Making false statements about what was purchased or how the purchase charge card was used
• Using the purchase charge card for prohibited purchases

Indicators of merchant fraud include:

• False charges/transactions
• Mischarging
• Bribes and gratuities
• Kickbacks