LEX Course Debuts on Fraud, Waste and Abuse

By Yvette Baptiste
Assistant Inspector General

The Exchange Inspector General’s office takes Fraud, Waste and Abuse (FWA) seriously, which is why LEX now includes a course — FWA1 — on the topics.

The Fraud, Waste and Abuse 101 web-based course provides a more detailed overview and educates associates on better identifying and reporting cases.

“The Exchange Inspector General is entrusted to detect and prevent fraud, waste and abuse through investigation, education and deterrence,” said Kevin Iverson, Senior Vice President of the Audit & Inspector General Directorate. “The Office of Inspector General is committed to bring awareness to fraud, waste and abuse, and examine ways to help mitigate any risks to Exchange operations.

“It is every associate’s responsibility to report all FWA or mismanagement involving Exchange operations.”

Ways to report fraud, waste and abuse

Associates are encouraged to report such occurrences to managers, Loss Prevention or the FWA Hotline. The Hotline provides a confidential means for associates and customers to bring allegations to our attention and deal with situations in an anonymous and impartial manner.

If associates choose not to elevate the issue their immediate supervisors, they can call Loss Prevention or file a complaint with the Office of Inspector General. To file a complaint confidentially or anonymously, visit the Exchange Inspector General’s website at, or email the IG at

So what is fraud, waste and abuse?

Fraud, waste, or abuse can have a substantial impact on any organization financially, even the Exchange.

Fraud is intentional deception, waste is inefficient or extravagant use of funds, and abuse is intentional or improper use of resources, especially where it results in a person’s individual gain.

Some examples include:

  • Engaging in time fraud; that’s reporting time you’ve worked but haven’t actually.
  • Utilizing office copy machine for personal use.
  • Using your office email account to conduct business for a social organization.
  • Paying for personal expenses using the corporate credit card.

Tracking and analyzing trends

The Exchange Inspector General recommends and conducts inspections and investigations directed by Director/CEO Tom Shull, and proposes policy formulation or clarification based on systemic findings due to inspections, inquiries, investigations or assistance requests.

“We track and analyze trends of our FWA cases to determine systemic issues that may affect the Exchange’s efficiency and operations,” Iverson said.  “The Exchange Inspector General conducts business and maintains IG records in a manner that provides associates with the greatest chance for problem resolution without fear of reprisal or unnecessary disclosure of information.”


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