What is the Anti-Fraud Playbook for State & Local Government?
Fraud isn’t just a theoretical risk for state and local governments. It’s an expensive reality. Whether it’s a billing scheme, kickback, ghost employee, or procurement fraud, these schemes cost taxpayers millions and erode trust in government.
That’s why we built the Anti-Fraud Playbook for State & Local Governments. It’s a simple, practical framework that helps agencies build stronger defenses against fraud and respond more effectively when it’s uncovered.
The Four Phases of the Anti-Fraud Journey
The Playbook is organized into four strategic phases that represent the full process of building and maintaining an effective fraud prevention program. Each phase includes specific and actionable steps, referred to as "plays," that agencies can adapt to meet their unique needs. Within these quadrants are 16 actionable plays. Each one is designed to help state and local governments take meaningful steps to reduce fraud risk. Some of the plays focus on internal controls. Others emphasize leadership, culture, training, or data analytics.
The Anti-Fraud Playbook for State & Local Government Phased Approach
Create a Culture
Fraud prevention begins with culture. This phase focuses on establishing a strong foundation where integrity is part of everyday operations. From setting the tone at the top to conducting fraud awareness training, these plays help create an environment where employees feel confident speaking up, leadership actively supports ethical behavior, and antifraud efforts are embraced as a core organizational value rather than just a compliance requirement.
Identify and Assess
You can’t fix what you can’t see. This phase guides agencies in identifying fraud risks before they materialize. It includes practical tools for thinking like a fraudster, conducting tailored fraud risk assessments, and developing a risk profile that reflects your agency’s unique vulnerabilities. These plays are grounded in leading practices from GAO’s Fraud Risk Framework and help ensure that risk mitigation efforts are focused where they matter most.
Prevent and Detect
Once risks are identified, it is time to take action. This phase focuses on building effective controls, both manual and data driven, that help prevent fraud and catch it early when it occurs. From using low-cost analytics to training your team to spot red flags, the plays in this section help agencies embed antifraud practices into their daily work. This phase also highlights the importance of internal collaboration by strengthening partnerships among audit, compliance, and program staff.
Insight into Action
Detection is only part of the equation. This final phase focuses on taking decisive action once fraud risks or incidents are identified. It offers guidance on how to respond to suspected fraud, document outcomes, and use what you’ve learned to improve controls and processes. This phase reinforces the importance of continuous improvement and building momentum by demonstrating that fraud risks are taken seriously and managed proactively.
Why a Playbook?
Because “fraud prevention” can feel overwhelming. It’s not always clear where to start or how to build momentum. The playbook breaks it down into manageable, bite-sized actions that can be adapted to fit your agency’s size, structure, and resources.
You don’t need a massive fraud unit or fancy software to get started. Even small steps, such as mapping fraud risks or offering targeted training, can make a real difference.
Built for Government, by Government Auditors
This isn’t a generic checklist pulled from the private sector. The playbook was created with the challenges of government operations in mind. It reflects what we’ve seen in the field: tight budgets, lean teams, and complex bureaucracies.
We also built in flexibility. Not every agency needs every play, and you don’t have to implement everything at once. Start with what makes the most sense for your risks and capacity.
Ready to Get Started?
If you want to dive deeper, download our self-study CPE eBook version of The Anti-Fraud Playbook for State & Local Government. It includes examples, tools, and tips you can put into practice right away and you’ll earn CPE credit while sharpening your fraud prevention skills.
