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Identifying Fraudulent Activity

(U.S. Air Force graphic)

(U.S. Air Force graphic)

KADENA AIR BASE, Japan --

Your unit and your Air Force need your help to identify and report fraudulent activities that deprive us all of precious resources. In addition to major crimes, counterintelligence and technology protection missions, a significant amount of the Air Force Office of Special Investigations’ (AFOSI) resources are dedicated to investigating fraud allegations. In the past few years, AFOSI has recovered well over a billion dollars from fraudsters worldwide. This amount is astounding, considering only about 10 percent of fraudulent activity is detected or reported.

Identifying fraudulent activity and recuperating funds can reduce the impact of budget constraints on base and family support programs. Don’t let anyone walk away with our money, every dollar is important. So how can you help?

Would you know fraud if you saw it? Someone getting bribed with a gift or money, a contractor substituting parts for more expensive parts, mischarging for services or products, and the black marketing of U.S. products are just a few examples. Unfortunately, it may not be that simple or obvious, and sometimes frauds are easy to conceal. Fraud comes in many forms and can often be difficult to prove, which is one of the reasons people are hesitant to report their suspicions. Please do not try to prove it, report your suspicions to your unit leadership or directly to your servicing investigations professionals.

Do you know who to talk to about fraud if you suspect it is occurring? You can report your suspicions to your unit leadership or your installation police, but the allegation will be forwarded to AFOSI or the Naval Criminal Investigations Service (NCIS) since they are the professional agencies charged with investigating such matters. There are a variety of ways to report your suspicions to these agencies and means to keep your name confidential:

For matters affecting Kadena Air Base or any Air Force resource, contact:

AFOSI Detachment 624 at 632-7000 or via e-mail at AFOSI.Kadena.FraudWasteTips@us.af.mil.

Anonymous reports can be made at www.osi.af.mil or by texting “AFOSI” plus your tip information to 847411.

For matters affecting any Navy or United States Marine Corps installation or resource, contact NCIS Okinawa at 645-0213. To report anonymously to NCIS, visit www.ncis.navy.mil.

 

EXAMPLES OF CRIMINAL FRAUD:

  • Corruption or bribery: The giving or receiving of a thing of value to influence a decision or an official act. Indicators include unexplained or unjustified favorable treatment of a particular supplier and when there is close socialization between the procurement official and vendor.
  • Product Substitution: The supply of materials or services that do not conform to contract requirements and which are supplied by means of intentional misrepresentation and/or concealment of facts. Indicators include early or frequent failure, high maintenance rates, failure to provide certifications, and missing/altered documentation.
  • Cost Mischarging: A very common scheme in which a contractor charges the government costs which are not allowable or cannot be directly or indirectly allocated to the contract. Indicators include charging the government ridiculous amounts for items which are often inexpensive to obtain. There are three types of cost mischarging: account, labor, and material mischarging.
  • Black Marketing: Buying items from the Commissary and Army and Air Force Exchange Service (AAFES) for the purpose of reselling them for profit can be unlawful, is a violation of policy, and can lead to loss of privileges. Additionally, this activity may constitute a violation of the U.S.-Japan Status of Forces Agreement and host nation customs law. Indicators include U.S.-only products being sold in local markets and restaurants, purchases of large quantities of a single item from the Defense Commissary Agency or AAFES, and splitting purchases at the checkout line.