Procurement fraud during geopolitical disruptions: Building resilience without sacrificing speed
Procurement fraud doesn’t emerge because of disruptions; disruptions simply expose and amplify existing vulnerabilities. During geopolitical tensions, organizations must act swiftly to secure suppliers and maintain operations. These necessary measures, however, disrupt control of environments and create conditions where fraud can thrive. The key challenge is how to maintain speed and agility while strengthening defenses against procurement fraud.
Agility and discipline can coexist
Geopolitical tensions and supply chain disruptions are not anomalies. Success depends on recognizing a simple reality: Procurement fraud thrives in the gap between urgency and oversight. The solution is not to slow down; it's to embed resilience into your processes.
By implementing adaptive controls, leveraging technology, and maintaining unwavering governance discipline, organizations can navigate uncertainty with both speed and integrity. The result? Stronger operational resilience, protected cash flow, and a culture where agility and ethics reinforce rather than compete with each other.
The question is not whether your organization can afford to strengthen procurement controls during disruptions. It is whether it can afford not to.
Why procurement is ground zero for fraud risk
Under these conditions, fraud schemes become significantly more prevalent:
Fictitious vendor schemes
Emergency procurement bypasses standard vendor onboarding protocols. Fraudsters exploit this by creating shell companies and submitting fraudulent invoices that slip through weakened due diligence checks.
Supplier collusion & price inflation
With competitive bidding suspended or limited, internal and external actors collude to inflate prices, knowing that urgency will override cost scrutiny.
Breakdown of segregation of duties
Remote work, resource constraints, and emergency protocols collapse the traditional checks and balances.
Over-reliance on manual processes:
When automation is reduced or disabled, controls depend entirely on human review, making them vulnerable to error, fatigue, and manipulation under time pressure.
Strategic imperatives
"Procurement fraud threatens trust and efficiency. Strong controls and transparency are essential to protect our processes and ensure lasting success."
Nader Kamra | Assistant Director | Risk, regulatory, & forensic
Simon Cuerden
