Deterring Repeated Fraud

Any successful fraudster can tell you the golden rule of his trade: if no one notices your fraud, keep doing it. The possibility to repeat past success makes fraud very costly: for example, health care fraud accounts for one to three percent of the US federal budget.[i] If a medical provider discovers a loophole in the screening technology by cheating the system successfully, he can file multiple bogus claims to swindle Medicare. An audit initiated at the request of the Senate Finance Committee in 2012 highlights the repeated nature of tax fraud by citing many incidents where a fraudster … Read more