The information presented is a summary of the results of QCRs of Fiscal Year 2018 and Fiscal Year 2019 financial statement audits conducted by IPAs. We encourage IPAs and Executive Directors to use the summary information in planning and conducting audits of LSC grantees.
The OIG Hotline has recently received several reports of ransomware attacks directed at grantee IT networks. The perpetrators of these attacks exploited weaknesses in grantees' IT infrastructure to disrupt grantee access to data, financial records, and sensitive client information, or to disable servers and back-up servers, pending payment of a ransom.
This recorded Fraud Awareness Briefing provides useful information to assist in preventing common fraud schemes found in grantee programs. The briefing aims to foster a dialogue with staff and to engender suggestions for ways to help protect your program from fraud in order to maintain the positive reputation your program has deservedly earned.Fraud Awareness Briefings (FAB) are presented by LSC OIG investigative staff and cover topics such as: who commits fraud; what conditions create an environment conducive to fraud; how can fraud be prevented or detected; and what to do if fraud is…
This Fraud Alert provides information obtained through OIG investigations involving payroll fraud, which generally occurs when employees wrongfully manipulate a payroll system to receive payments they have not earned.
OIG reviews have revealed that many LSC grantees have been using Automated Clearing House (ACH) transactions, in which payments are transferred electronically from one verified bank account to another. Previously, grantees' degree of usage varied considerably from program to program.ACH Transactions (7/20/2020)As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information and "best practices" to assist them in identifying and/or preventing fraudulent activity.OIG reviews have revealed that many…
The Pandemic Response Accountability Committee (PRAC), announced the release of the report entitled, "Top Challenges Facing Federal Agencies: COVID-19 Emergency Relief and Response Efforts" including a section on the Legal Services Corporation.On June 17, 2020, the Pandemic Response Accountability Committee (PRAC), published its report on the top challenges facing Federal agencies related to COVID-19 emergency relief and response efforts.See the report's introductory video and the full report, which outlines common areas identified as top pandemic-related challenges by thirty-seven Inspectors…
The COVID-19 crisis is resulting in new scams that target businesses including nonprofits as they adjust to changes in how they conduct business. Unfortunately, scammers are creating new ways to fraudulently take advantage of businesses during this vulnerable time. As grantees work diligently to meet the needs of their clients and employees, it is also important to be vigilant to indicators of scams aimed at defrauding businesses.IndexIntroductionPandemic Response Accountability Committee: Fraud Alerts, Issued by OIGs, Help Americans from Becoming Victims of FraudScams that Pose a Risk to…
As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information and resources relating to Coronavirus/COVID-19 frauds and scams.OIG Fraud Corner articles issued on March 24, 2020, and April 9, 2020, discussed fraud and purchasing schemes relating to COVID-19 and encouraged grantees to share that information with their employees and clients. This article addresses issues that may arise in conjunction with the virtual environment that is being embraced by LSC grantees, their employees, and their…
As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information and resources relating to Coronavirus/COVID-19 frauds and scams.A March 24, 2020, OIG Fraud Corner article discussed fraud schemes relating to COVID-19 and encouraged grantees to share that information with their clients. This article deals with potential price gouging, price-fixing, and bid-rigging scams that can adversely affect LSC grantees and their clients as they make critical purchases during the COVID-19 crisis. As the United…
As part of its Fraud Corner series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following best practices to aid you in preventing and detecting thefts through third party payment (TPP) services. This article provides guidance on risk factors relating to TPP service thefts and measures employees can take to prevent and detect such thefts.Millions of individuals and businesses use TPP services (or "mobile payment platforms") to make and share payments with friends, family, and businesses. TPP vendors like PayPal, Venmo, and Apple Pay…