WASHINGTON – In the first quarter of Fiscal Year 2025, the Army reaffirmed its commitment to combating fraud, waste, and abuse by hosting the inaugural Army Fraud Awareness Week and launching the Fraud 101 training course for all Army personnel and contractors.
Annually, the global anti-fraud community designates a week in November as “International Fraud Awareness Week,” during which organizations worldwide discuss best practices and techniques for fighting fraud. This year, the Assistant Secretary of the Army for Financial Management and Comptroller (ASA (FM&C)) partnered with the Department of the Army Criminal Investigation Division (DACID) and the U.S. Army Audit Agency (USAAA) to participate in this global event by hosting Army’s Fraud Awareness Week from November 18-22, 2024.
Throughout the week, DACID, USAAA, and proponents from Army Headquarters responsible for specific programs, conducted a series of “lunch and learn” events. These sessions provided valuable insights into Army’s Fraud Risk Management program and fraud risk areas. They also showcased controls in place to prevent fraud. Attendees also learned about “red flags” to watch out for and reviewed case studies to better understand how the frauds occurred and the importance of vigilance.
Army’s Fraud Risk Management program, overseen by Domenico Rossi and Molly Gamino, who act as the Army’s members to the Office of Secretary Defense Fraud Task Force, has also launched Fraud 101, a digital learning course within the Army Training Information System, to build awareness and resilience in the Army’s fight against fraud.
The course is an integral part of the Army’s fraud risk management efforts. Because of its importance, it will be available to Army soldiers, civilians, and contractors.
Fraud is a Pervasive Challenge
According to an April 2024 Government Accountability Office report,[1] fraud is a significant threat to federal agencies, costing taxpayers between $233 billion and half a trillion dollars annually between 2018 and 2022.
In recent years, the Army has cracked several high-profile fraud schemes, ranging from contracting fraud to theft of Army property. In one case,[2] a subcontractor for a lock and dam repair project on the Mississippi River was sentenced to prison for falsifying test results to conceal product defects. In another case, six soldiers were charged[3] for stealing sensitive equipment and selling it to anonymous eBay bidders from foreign nations, including China and Russia. Last year, an Army officer and his wife were prosecuted[4] for abusing his inventory requisition authority to divert and sell government property worth nearly $2 million.
“Fraud is not merely a question of the loss and misuse of taxpayer dollars, itself a significant problem,” said Special Agent Bill Stakes, Fraud and Property Crimes Division Chief with DACID Investigations and Operations Directorate. “In some cases, particularly those involving contracting and procurement, fraudulent misrepresentations about product quality, product substitution, and other criminal acts can diminish the lethality of the Army and jeopardize the safety of Army soldiers, civilians, and contractors. This real-world impact underscores the importance of building fraud risk awareness proactively throughout the Army.”
A Proactive Approach
Apart from educating the Army community about fraud risks, ASA (FM&C) is taking a proactive approach to fighting fraud.
Last year, ASA (FM&C) launched a Fraud Risk Management Working Group composed of subject matter experts from across the Army to develop a comprehensive fraud risk management strategy and conduct a fraud risk assessment across multiple high-risk functional areas. The assessment results will help drive efforts to strengthen internal controls and reduce fraud risk across the Department.
The working group is also coordinating with DACID and USAAA to identify fraud trends and leverage existing data analytics to prevent and detect fraud more effectively.
Taking a more proactive approach not only detects, but also deters fraud. The three components of the fraud triangle used to identify the conditions that contribute to fraud, are motive, opportunity, and rationalization. “It’s important potential fraudsters understand the Army is actively looking for fraud,” Bill Gable, the Chief of Staff to the Army Auditor General and a presenter during Fraud Awareness Week said. “We can deter more fraud than we can detect” by letting folks know we’re looking. It’s harder for a fraudster to rationalize fraud when they understand it’s likely they’ll be caught.”
Over time, these combined efforts are aimed at strengthening the Army’s defenses against fraud and making it harder for fraudsters to damage the Army’s reputation, assets, and people.
Call to Action
As noted by former ASA (FM&C) Caral Spangler during her opening remarks for Army Fraud Awareness Week, everyone in the Army community has an important role to play in the fight against fraud.
“The Army plays a vital role in protecting our nation, but keeping the Army strong requires a commitment to integrity,” said Honorable Spangler. “So, if you personally become aware of fraud, please report it because it is the right thing to do.”
For information on reporting suspected fraud, please visit the following websites:
[1] Government Accountability Office, Fraud Risk Management: 2018-2022 Data Show Federal Government Loses an Estimated $233 Billion to $521 Billion Annually to Fraud, Based on Various Risk Environments (2024)
[2] U.S. Attorney’s Office, Eastern District of Missouri, Hazelwood Company Owner Sentenced to Year in Prison for U.S. Corps of Engineers Contract Fraud (2024)
[3] U.S. Attorney’s Office, Middle District of Tennessee, Six Fort Campbell Soldiers and Two Others Charged with Stealing and Selling Sensitive Military Equipment (2016)
[4] U.S. Attorney's Office, Eastern District of North Carolina, Army Officer Sentenced for Theft of Government Property and Ordered to Pay Half a Million Dollars (2024)
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