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5/18/2023
The Amtrak Office of Inspector General (OIG) yesterday released a report outlining fraud risks Amtrak could face as it makes use of federal investments for major acquisitions and capital projects.
Historic levels of federal funding through the Infrastructure Investment and Jobs Act of 2021 will, in part, advance the railroad’s long-term, large-scale infrastructure goals and significantly expand its traditional mission of passenger-rail operations to now include a major capital delivery mission, OIG officials said in a press release.
However, the sheer size and nature of the expansion will increase Amtrak's fraud risk, they said.
The report identified four high-risk fraud areas Amtrak faces: contracts and procurements, health care, employee wrongdoing and cybercrime. It includes examples of how such fraud manifests, and potential fraud mitigations for consideration.
For example, the OIG’s prior work exposed contract steering and bid rigging schemes; overcharging by contractors; schemes in which employees conspired with doctors to bill Amtrak’s health-care plan; employee theft; and cyber crimes involving Amtrak’s e-voucher program.
The OIG credits Amtrak for establishing its Integrated Risk and Compliance Program (IRCP) to monitor fraud risks and establish capabilities to proactively identify fraudulent activity. The report notes that the IRCP could bolster Amtrak’s enterprise-wide fraud defenses, a culture of integrity and employee awareness of fraud schemes and indicators.