US Navy Procurement Fraud Scheme
How to Protect Yourself from Procurement Fraud
Automated and streamlined procurement saves many companies millions of dollars through better pricing, better supplier relationships, and improved strategies from data analytics. These benefits are at the forefront of many procurement decision makers’ minds, but avoiding procurement fraud could be the most powerful way procurement saves organizations money.
A former Navy senior chief was recently convicted for involvement in a procurement fraud scheme that resulted in a $2.3 million loss for the US Navy. The parties involved in the fraudulent activity bypassed the existing procurement process and created false documents to hide their activity.
Procurement fraud is very avoidable with the right parties’ involvement and the proper checks in place.
When procurement goes through a cloud system, the appropriate parties have direct access to information that prevents fraudulent activity. With appropriate approval processes, procurement leaders don’t have the individual power to commit fraud like the Navy recently experienced.
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