{"id":9519,"date":"2022-06-10T20:04:56","date_gmt":"2022-06-10T20:04:56","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2022\/06\/10\/using-the-5cs-of-fraud-prevention-in-government-programs\/"},"modified":"2026-08-08T04:10:35","modified_gmt":"2026-08-08T04:10:35","slug":"using-the-5cs-of-fraud-prevention-in-government-programs","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/govcon\/2022\/06\/10\/using-the-5cs-of-fraud-prevention-in-government-programs\/","title":{"rendered":"Using the 5Cs of fraud prevention in government programs"},"content":{"rendered":"\n

Identity theft and fraudulent activity surrounding government relief programs has exponentially increased over the past two years. Fraudsters have stolen billions of taxpayers\u2019 dollars, monies intended for small businesses and workers experiencing economic hardship caused by the pandemic.<\/p>\n\n\n\n

The proliferation of fraud is hardly a surprise. In times of great stress and panic, savvy fraudsters descend on vulnerable private sector companies and large-scale government programs where funds seem plentiful. This problem manifested with the recent announcement that an estimated $163 billion in pandemic unemployment benefits was likely lost to fraud and waste, siphoning valuable resources from those that needed it most.<\/p>\n\n\n\n

U.S. government agencies have sought to verify and characterize the potential fraud risk of applicants for national COVID-19 grant programs. For example, in one case that analyzed tens of thousands of small business applicants, analytic experts at Dun & Bradstreet and fraud examiners leveraged human-guided artificial intelligence and a certified fraudulent activity repository to identify hundreds of applicants – eligible for millions of dollars in grants – who triggered potential fraud indicators, and other cases where clear-cut malfeasant activity was present.<\/p>\n\n\n\n

While the agency was able to ensure funding was going to those most deserving and in the most need, it is unfortunate that these tumultuous times have created opportunities for fraudsters to exploit federal relief programs and citizens who rely on those programs. As the world digitally transforms, tools using data and analytics are getting better at exposing fraudulent activity. By detecting anomalies in data using advanced technologies such as artificial intelligence and machine learning, agencies are able to identify nefarious activity and stop it before more costly and malicious activity occurs. Actionable information extracted from data can also enable agencies to detect and prevent fraud before it happens.<\/p>\n\n\n\n

The key to prevention is preparation. Multiple comprehensive strategies for covering a range of contingencies should be developed. Best practices, such as the Five Cs of Fraud Prevention, can be used as a roadmap for analyzing and mitigating risk and ensuring that the key elements of prevention are utilized.<\/p>\n\n\n\n

The Five Cs of Fraud Prevention:<\/h2>\n\n\n\n