New Approaches for Fighting Fraud
The Fraud Reduction and Data Analytics Act, signed into law in June 2016, requires the Office of Management and Budget to set guidelines for agency identification and assessment of fraud risks and the design and implementation of controls to prevent them. These guidelines must incorporate the leading practices in the Government Accountability Office’s Framework for Managing Fraud Risks in Federal Programs. The act also requires OMB to lead interagency coordination among agencies to share and promote best practices in the law’s implementation.
Agencies are grappling with the practicalities of implementation of the new law. Given the variability in fraud risks, fraud risk management must take place at different levels within an organization. And because fraud risk assessments are relatively new, taking an incremental approach makes sense.