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All State of Minnesota employees have a duty to prevent fraud, waste, and abuse of public dollars—and to report it when we know or suspect it has occurred.
“Fraud” is any activity that relies on deception in order to achieve a gain. Fraud becomes a crime when it is a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to their detriment.”1 In other words, if someone intentionally tries to get something they don’t have a right to, like money, property, or services, by lying or deceiving others, then they’re committing fraud.
Per MN Statute § 609.52, fraud typically involves intentionally deceiving another party to obtain property, services, or financial gain unlawfully. Fraudulent acts may include false representation, concealment, or misrepresentation of material facts.
Fraud Statistics2
- More than half of occupational frauds occur due to weak internal controls or an override of existing internal controls.
- Whistleblowers are the most common way of detecting fraud.
- 43% of occupational frauds uncovered in the past year were detected thanks to a tip, which is three times as many cases as the second-most common method of uncovering fraud.
- 52% of fraud tips came from employees.
- Typical fraud events begin 12 months before they’re detected.
- Asset misappropriation accounts for 51% of fraud.
What do you do if you suspect fraud? Each agency has their own designated reporting channels and mechanisms. It is important to familiarize yourself with your agency’s processes and feel confident in sharing this information with others at your agency.
Employees can report fraud or suspicious activity to their supervisor, a senior manager or Human Resources office or by contacting the fraud reporting resources available on Minnesota Management and Budget’s Internal Control & Accountability Fraud Reporting webpage.
The State of Minnesota Executive Order 25-01 also instructs state employees to report possible public program fraud to the new Financial Crimes and Fraud section at the Bureau of Criminal Apprehension, in addition to the normal reporting requirements to the Office of the Legislative Auditor.
The State’s Whistleblower statute protects state agency workers who in good faith report actual, suspected, or planned violations.
Fraud Definition, Statistics, and other Sources
1Fraud 101: What is Fraud? Association of Certified Fraud Examiners (ACFE).
2Occupation Fraud 2024: A Report to the Nations, ACFE.
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