Provide two examples of fraud schemes in procurement.

Provide two examples of fraud schemes in procurement.

• A. Bid rigging and kickbacks
• B. Overpricing and embezzlement unrelated to suppliers
• C. Patent filing and trademark renewal
• D. Data compression and deduplication

Answer: (A)

The main idea is recognizing typical fraud that undermines the purchasing process. Bid rigging and kickbacks are classic examples of procurement fraud because they directly involve manipulating how contracts are won and paid for. Bid rigging happens when competitors secretly cooperate to control the outcome of a bidding process—agreeing who will bid, what price to submit, or who will win—so the buyer loses genuine competition. This keeps prices artificially high and erodes trust in fairness and transparency of the procurement process. Kickbacks occur when a supplier or contractor provides payments or other favors to a procurement official or intermediary in exchange for steering the contract their way or for favorable terms. This creates a conflict of interest and can distort award decisions, leading to poorer value and higher costs. The other options miss the procurement fraud focus: they describe activities that aren’t about manipulating supplier contracts (IP filings) or are unrelated technical processes (data compression/deduplication).

The main idea is recognizing typical fraud that undermines the purchasing process. Bid rigging and kickbacks are classic examples of procurement fraud because they directly involve manipulating how contracts are won and paid for.

Bid rigging happens when competitors secretly cooperate to control the outcome of a bidding process—agreeing who will bid, what price to submit, or who will win—so the buyer loses genuine competition. This keeps prices artificially high and erodes trust in fairness and transparency of the procurement process.

Kickbacks occur when a supplier or contractor provides payments or other favors to a procurement official or intermediary in exchange for steering the contract their way or for favorable terms. This creates a conflict of interest and can distort award decisions, leading to poorer value and higher costs.

The other options miss the procurement fraud focus: they describe activities that aren’t about manipulating supplier contracts (IP filings) or are unrelated technical processes (data compression/deduplication).