{"id":6305,"date":"2020-08-24T17:41:58","slug":"procurement-fraud-be-cautious-of-these-4-fraud-red-flags","title":{"rendered":"Procurement Fraud: be Cautious of These 4 Fraud Red Flags"},"content":{"rendered":"

\"\"Recent research from the tax and audit consulting firm, Crowe UK together with the Center for Counter Fraud Studies (CCFS) of the University of Portsmouth revealed in the 2018 Financial Cost of Fraud report that mining companies contributed 51% of losses to procurement fraud. Meanwhile, procurement fraud in the UK is estimated to cost billions of pounds every year.<\/span><\/p>\n

Procurement fraud is a type of fraud that occurs in the procurement of goods in private companies and government institutions. This type of fraud occurs very often and is not easy to detect, prove or prosecute to court because of the many parties involved, especially internal parties, and can occur at various stages of the procurement life cycle. Procurement fraud is the most difficult type of fraud to be eradicated. Based on the Indonesia Corruption Watch\u2019s (ICW) report, 70% of corruption cases in Indonesia originate from the purchase of goods and services.<\/span><\/p>\n

The red flags\u00a0<\/b><\/h3>\n

Every fraud, including procurement fraud, always shows certain suspicious behaviors or red flags. By recognizing these red flags, we can be more alert to the indications of fraud so that it can be prevented, and company losses can be minimized. The following are red flags that may occur in procurement fraud:<\/span><\/p>\n