FraudNet Activity Report for Fiscal Year 2024
Highlights
In fiscal year 2024 FraudNet processed over 5,780 allegations and referred over 2,100 of these allegations to various organizations for further inquiry. In addition, FraudNet supported over 50 internal requests for support from GAO teams conducting audits and investigations.
Why This Matters
FraudNet’s primary mission is to facilitate the reporting of alleged fraud, waste, abuse, and mismanagement involving federal funds. It also supports GAO audits and investigations. This is the overview of FraudNet’s activities for fiscal year 2024.
FraudNet Processed over 5,780 Allegations in Fiscal Year 2024
Complainants, which can include the public, government employees and contractors, submitted over 5,780 allegations to FraudNet in fiscal year 2024. As shown in the figure below, the number of allegations FraudNet processed in fiscal year 2024 was higher than prior years, with the exception of fiscal year 2022. In fiscal year 2022, more than half of the allegations received were associated with social media campaigns that resulted in multiple complainants submitting form letters alleging the same fraud. This type of allegation was not prevalent in fiscal year 2024.
Allegations in fiscal year 2024 included those complainants categorized as mismanagement, waste, or misappropriation of government funds; ethics/conflict of interest/misconduct; false statements/claims; and embezzlement.
FraudNet’s Investigative Research Analysts review and document every allegation received. If FraudNet analysts determine an allegation should be referred elsewhere, possibly for investigation, they send it to federal Offices of the Inspector General (OIG) or other federal, state, and local entities as appropriate. Those entities then determine whether and how they will address an allegation.
Of the total allegations received in fiscal year 2024, FraudNet referred over 2,100 allegations to approximately 60 entities. These included the Department of Justice, and OIGs at the Department of Defense and the Treasury. For over 270 allegations, complainants indicated that they had sent the same allegation to entities other than GAO, and there were also approximately 590 complaints that were flagged as duplicates by FraudNet analysts. In such instances, FraudNet generally did not refer the allegation to those other entities to avoid duplicating efforts
FraudNet Analysts Provided Research Support to GAO Audits and Investigations
In fiscal year 2024, FraudNet analysts supported over 50 requests from GAO teams conducting audits and investigations. These requests involved analysts researching individuals and businesses.
For example, FraudNet analysts obtained publicly available information to support a GAO audit related to TRICARE Network providers. The Department of Defense's TRICARE program offers health care to more than 9 million beneficiaries through DOD healthcare facilities and private healthcare providers. (GAO-24-106434). FraudNet’s work helped GAO auditors identify practicing providers who had limited credentials, revoked credentials, and were ineligible to work for the TRICARE Network.
Anyone can contact FraudNet’s hotline to report suspected fraud, waste, abuse, or mismanagement of federal funds. The internet-based Complaint Form is the preferred reporting method. GAO cannot accept classified information via the website – please call (1-800-424-5454) for further guidance for allegations involving classified information.
When complainants submit an allegation through FraudNet’s website, they have the option to select the category that they think best describes their allegation. This selection can help FraudNet analysts evaluate allegations. The categories can also inform overall trend analysis. When FraudNet receives an allegation, the analysts do not edit or change it. Rather the analysts evaluate the allegation and, in some instances, follow up with the complainants for more information. The analysts then may determine that referral to another entity is appropriate. See the graphic below for good practices to follow when filing an allegation with FraudNet. GAO does not independently investigate allegations of fraud, waste, or abuse. However, FraudNet documents all allegations received in its case management system and makes them available to inform any ongoing or future GAO work.
For more information, contact Howard Arp at arpj@gao.gov.