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What’s Wrong with This Picture?
Can you spot the Red Flags of Vendor Fraud in this fictitious
Request for Proposal?
[Visual: Sample page of RFP with errors "called out"]
XYZ Corporation
Request for Proposal
For Corporate Security Services
1. Name/Address of Company:
Name:
Bennington Slade Industries
Address:
P.O. Box 871
Palo Alto, California 90031
Owner:
Armold M. Boyd, CFISS
2) Please furnish all relevant background
information:
1992-present
Vice President, Operations, The Milford Detective Agency
Phoenix, Arizona
1981-1986
Served in the U.S. Army under the command of Colonel G. West, Glen
Airforce
Base, The Phillipines
1979-1980
Security Guard, Springer Security, New York, New York
3._List professional certifications:
Certified Fraud Investigation and Surveillance Specialist,
Awarded by the Institute of Fraud Protection, Security and Surveillance,
Columbus, Ohio, 1992
4) Please provide current audited financial
statement:
To be furnished.
5) Explain your pricing strategy:
We will perform the required contract services at 25%
below the cost of any formally submitted bid.
6) Please provide two business references.
Pan Am Airways, Houston, Texas
Signal Supply Corp., Talahassee, Florida
Did You Spot The Red Flags?
#1:
P.O. Box supplied instead of street address. Where will you find the
vendor if a problem arises?
#2:
Large gaps in employment service. Why?
#3:
The Institute of Fraud Protection, Security and Surveillance sounds
impressive. But does it really exist?
#4: Audited
financial statement not available. Why not?
#5: Price
is too good to be true!
#6: One of these
references is out of business; there’s no one to contact to verify
the facts!
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