Definition
A Kickback Scheme refers to a structured arrangement in which a person receives hidden payments or benefits in exchange for favouring a business partner.
Context
Kickback schemes commonly occur in procurement and contracting processes and are closely linked to corruption, conflicts of interest, and weak internal controls. They are often enabled by insufficient segregation of duties and lack of transparency in vendor relationships.
Meaning
Kickback schemes systematically distort procurement decisions, increase costs, and represent a significant fraud and compliance risk.
Example
A purchasing manager receives undisclosed commissions from vendors in exchange for awarding contracts.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Kickback Scheme", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/kickback-scheme/, accessed April 18, 2026.