By |17 Sep 2023 at 4:46 PM
National Report Kickback Fraud Day 2023: Date, History, Facts about Fraud

National Accounts The 18th of September is observed annually in the United States as Kickback Fraud Day to emphasise the difficulties and crises caused by various types of kickback fraud. There is a pressing need to promote public awareness of kickback fraud, which costs the federal government more than 10% of its budget each year. Educating the public on the specific methods for reporting commission fraud is a major focus of this day.

As a result of the government’s ongoing projects, which generate billions of dollars in expenditures, fraudsters are progressively exploiting gaps to steal funds.

The background of National Report Kickback Fraud Day

While fraud has existed since the beginning of economic transactions, commission fraud became prevalent in the 20th century. Kickbacks are one of the most prevalent forms of government malfeasance.

Congress enacted the first anti-kickback law, the “Copeland Act”, in 1931 in response to the realisation that employers were conspiring to circumvent federal wage standards during the Great Depression. The statute, which remains in effect, prohibits major infrastructure contractors from requiring their employees to ‘kickback’ or return any portion of the wages they are entitled to under their employment contracts.

The Medicare and Medicaid programmes, which were established in 1965, provided millions of Americans with health insurance. The programmes’ enormous budgets and flawed reimbursement procedures led to fraud, waste, and abuse almost immediately. More patients resulted in a rise in claims, which increased medical service providers’ revenue. In 1972, Congress enacted the Anti-Kickback Statute to ensure that Medicare and Medicaid beneficiaries receive only essential goods and services.

Despite the comprehensive scope of the Anti-kickback law, its disciplinary authority was limited, making it a less effective enforcement tool. In 1977, Congress amended the law to make commission violations punishable by up to five years in prison. In addition, it expanded the language of the law to prohibit ‘any compensation’ offered in exchange for referrals.

The 21st century shone a brighter light on the government and general public repercussions of kickback deception. These concerns prompted the founder of The Hesch Firm, Joel D. Hesch, to establish a kickback fraud awareness day and initiate a campaign to aid the government in combating the rise of kickback fraud.

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The United States is almost always at the top of the list of the top ten countries for fraud.

Approximately forty percent of the top five categories of credit card fraud are associated with new accounts and cards.

Over one million children have their identities stolen annually as a consequence of playing online games or making online purchases.

Scam statistics indicate that con artists are more likely to target lonely or vulnerable individuals who are more receptive to conversation.

As social media platforms continue to facilitate online dating, the number of fake profiles increases.


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