Exposing Procurement Fraud in Manufacturing
How a Leading Manufacturer Detected and Addressed Internal Irregularities
Uncovering Internal Procurement Fraud in a Manufacturing Giant
A leading manufacturing company was facing unexplained financial discrepancies that hinted at possible internal fraud. With rising losses and eroding trust, the company turned to our expert fraud investigation team to uncover the truth and restore integrity.
Client Background
A Leading Manufacturing Giant with Complex Procurement Operations
Client :
Global Manufacturing Corporation
Industry :
Heavy Machinery Manufacturing
Region :
North America
Customers :
Industrial clients, government contracts
Total revenue :
$2.5 billion annually
Challenges
The client noticed irregularities in procurement costs and inventory records, but lacked the internal expertise and tools to trace the root cause. The complexity of their supply chain and the involvement of multiple stakeholders made it difficult to pinpoint fraudulent activities.
Our Approach
A strategic blend of analytics, field insights, and compliance collaboration to uncover procurement fraud.
Data Analysis
Conducted forensic data analysis of procurement and inventory records
01
Staff Interviews
Interviewed key procurement and warehouse staff
02
03
Digital Monitoring
Deployed digital monitoring tools to track transactions in real-time
04
Evidence Collaboration
Collaborated with legal and compliance teams for evidence gathering
Solution
Targeted investigative actions leading to fraud detection, process correction, and risk mitigation.
Identified a collusion scheme between an internal procurement manager and an external supplier
Recovered critical financial documents and digital evidence
Implemented stricter procurement controls and approval workflows
Provided staff training on fraud awareness and reporting
Business Impact
The investigation led to the dismissal of involved employees, recovery of $1.2 million in losses, and the establishment of a robust fraud prevention framework. The client regained stakeholder trust and significantly reduced future fraud risk.
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