| Following any type of disaster, there is a strong chance fraudulent behavior will be present. Oftentimes, vulnerabilities exist for fraudsters to commit different types of fraud and go unnoticed. The focus of relief response is kept on helping those in need who have lost basic necessities. Government agencies concentrate on expediting resources and, in this haste, sometimes overlook areas susceptible to fraud. Hurricane Katrina hit the Gulf States in August 2005 and, because of the magnitude of damage, highlighted where these vulnerabilities exist in the relief response. Just over seven years later, Hurricane Sandy hit the northeast US in October 2012. After Hurricane Katrina, Hurricane Sandy was the next major storm to hit the US, and therefore, many similarities exist between the two. Although there is limited availability on fraud associated with Hurricane Sandy, a comparative analysis of audit reports and individual fraud cases related to each hurricane illustrates an improvement in the response from 2005 to 2012. Improvements were made in internal controls, and increased cooperation between different agencies allowed for a more efficient and effective response. Additional improvements can still be made to lessen the amount of taxpayer dollars lost to fraud, waste, and abuse. Strengthening internal controls, increasing oversight, and enhancing inter agency cooperation can help lessen the loss of funds to fraud. Ultimately, the ideal relief response would properly serve those in need while strictly managing the distribution of government funds. |
