Fraud Prevention and Detection

What is Fraud?

Fraud is an intentional act of deception intended to secure an unfair or unlawful gain and deprives another person or organization of something of value.  Most often fraud results in a financial loss to the victim.

Fraud involving government resources can take many forms, such as corruption, procurement fraud, time theft, and larceny.

The Fraud Triangle (right) illustrates why people commit fraud. Often a sudden financial pressure (debts, job loss, medical crisis, substance use or divorce) or greed motivates a person to commit fraud.  Poor internal controls or lack of oversight creates the opportunity for the fraud to occur. And finally, thoughts like “everyone is doing it” or “it’s just a loan” help a person justify or rationalize their actions.

Preventing Fraud

The most effective way to prevent fraud is to reduce or eliminate the opportunity for it to occur in the first place.  The OIG works with state agencies and municipalities to strengthen internal controls, promote best practices in governance and managing public resources, business continuity and knowledge transfer.

According to the Association of Certified Fraud Examiners 2024 Report to the Nations, more than half of workplace frauds occurred due to a lack of internal controls or the override of existing controls. The report further states that 44% of government fraud is detected as a result of a hotline tip and tips are twice as likely to come from employees who have received fraud awareness training as from those who did not.  The combination of a fraud hotline and fraud awareness training results in a significant reduction in losses.

The OIG Academy regularly offers free Fraud Awareness and Prevention Training. The OIG produces flyers, videos and other materials to promote fraud awareness.

Download and post our Red Flags for Fraud flyer.

How To Report

The OIG operates a confidential fraud hotline to handle complaints of suspected fraud, waste, or abuse of public resources on the state and municipal level and our Transportation Division specifically handles complaints related to public transportation funds (MassDOT, MBTA, regional transit authorities and Chapter 90 expenditures).

If you suspect fraud, waste, or abuse of public funds or assets, you are encouraged to report it to the OIG’s Fraud Hotline. Many of our most significant cases started as hotline tips. By law, all complaints are confidential and are not subject to the public records law.

• You are not required to give your name, though doing so will aid our investigation.
• Free, confidential translation services are available in most languages.
• Whistleblowers are protected by state law.

Use the OIG’s convenient online form to report suspected fraud, waste, or abuse.

You can also call the OIG Fraud Hotline at 1-800-322-1323, or email at [email protected], or visit us at 1 Ashburton Place, Room 1311, Boston, MA 02108.