Fraud Protection Riding on an Integrated Business Intelligence Foundation: The Case of the Department of the Navy

• In Event: Fraud and Governance Failures

Abstract

Government procurement processes are vulnerable to fraud, requiring the development and implementation of effective anomaly detection mechanisms. This study explores, from a stakeholder perspective, the viability of data analytics software as a tool in government fraud prevention. Using an interview methodology, we analyze the implications of business intelligence and analytics fraud tools on procurement stakeholders. We find implementation and integration of a business intelligence and fraud program streamlines processes by consolidating information and presenting data within a singular program. The knowledge gain in this study is that a functioning data analytics fraud prevention program increases the confidence level of our stakeholders without alleviating their responsibility to perform their due diligence in their management functions. Our stakeholders identify fraud programs as one of many tools in their toolbox, indicating minimal policy ramifications directly resulting from the implementation of a new fraud detection program. Although the stakeholder organizations would see an increase in workload related to greater identification of fraudulent cases generated by the program, the potential benefits from the fraud program are seen to outweigh this potential workload change.

Authors

• Robert J Eger, Naval Postgraduate School

• Robert J Eger, Naval Postgraduate School

• Juanita M Rendon, US Naval Postgraduate School

• Rene G. Rendon, Naval Postgraduate School

• Christy D. Smith, University of New Haven