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Fraud, Waste, Abuse, and Mismanagement

Know how to recognize and report them

AN OVERVIEW


Government agencies that track and recover damages from fraud, waste, abuse, and mismanagement have a big job.

GAO's FraudNet
FraudNet is GAO's hotline for the public to report government fraud, waste, abuse, or mismanagement of federal funds.

The public sent 10,989 complaints to FraudNet in FY 2018.
1,200 of those complaints were considered to be allegations worth pursuing.

Bar chart: Number of allegations
Fraud = 587
Waste = 376
Abuse = 399
Mismanagement = 323
Other types of allegations = 326

Source: GAO.
Note: Numbers in this chart are based on an analysis of 2,008 allegations contained in 1,200 complaints. Several complaints involved more than one allegation.

The impact of fraud, waste, abuse, and mismanagement is felt government-wide.

For example, $2.8 Billion was recovered by the Department of Justice in FY 2018 from civil cases involving fraud.
Source: Department of Justice.


FRAUD

Fraud is attempting to obtain something of value through willful misrepresentation 

- Inflating hours billed to an agency for IT support
- Underreporting income to receive federal subsidies for food and housing
- Selling counterfeit electronics to an agency

Only the judicial system can determine whether an act is indeed fraud.


WASTE

Waste is squandering money or resources, even if not explicitly illegal 

- Buying overpriced office equipment from a favored vendor 
- Directing agency staff to discard computers rather than donating them to local schools
- Buying unnecessary equipment for personal use or gain


ABUSE

Abuse is behaving improperly or unreasonably, or misusing one's position or authority

- Using an agency computer to download sexually explicit material
- Writing technical specifications or contract terms to favor a specific contractor 
- Buying digital music players for "official data storage"


MISMANAGEMENT

Mismanagement is creating a substantial risk to an agency's ability to accomplish its mission

- Continuing to pay utility bills for formerly leased office space 
- Renewing a technical support contract for software the agency no longer uses
- Stockpiling equipment beyond its shelf-life 


FRAUDNET

How can I report fraud, waste, abuse, and mismanagement?

FraudNet is available online or by telephone for the public to report government fraud, waste, abuse, or mismanagement of federal funds. FraudNet:
- Refers allegations to the appropriate authorities
- Helps other agencies establish and operate hotlines
- Supports congressional investigations 

Web: gao.gov/fraudnet
Email: fraud@gao.gov
Phone: (800) 424-5454


Looking for more information?
Visit GAO.GOV/FRAUDNET
This work has been released into the public domain.

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