Types of Military/ Government Contractor Fraud
List of Other Fraud Schemes
There are hundreds of other fraud schemes being committed against the military, Homeland Security, and other federal agencies. Below is a list of common fraud schemes. Even if the fraud you know about is not listed here, it may still be eligible for a reward if you have sufficient evidence of fraud against the government.
- Billing a government contract for work or parts used on a commercial contract (mischarging)
- Charging for services not actually rendered
- Falsely stating how many hours were spent
- Lying about any work or service required to be performed
- Billing for unallowable costs (i.e. personal expenses, or excessive salaries)
- Overstating about how much it cost to make or buy an item
- Misstating the percentage of completion of the contract (i.e. false progress payment requests)
- Not conducting all of the required tests on items (i.e. testing of only one in 10,000 instead of the required one in 100, or not testing at all)
- Substituting a different or an inferior product than called for in the contract
- Concealing the true ownership or value of property
- Sale and leaseback (i.e. selling property or buildings to a related party and then leasing it back from them)
- Bid rigging (i.e. firms agreeing in advance how they will bid for a government contract)
- Defective pricing (i.e. submitting inaccurate “cost or pricing data” when negotiation the price of a government contract
- Kickbacks (i.e. accepting improper payments from suppliers to induce use of their products)
- Not passing on to the government the same discounts or rebates given to others
- Improper or inflated G&A or Overhead rates
- Knowingly violating a Federal Acquisition Regulation (FAR) or an accounting standard
- Billing for work which does not comply with specifications
- Undisclosed related party transactions
If you know of anyone cheating the government in one of these or other ways and are interested in a reward, fill out our fraud questionnaire.