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Fraud prevention in government programs is more challenging than ever. From managing public benefits to overseeing procurement, the sheer scale and complexity of operations make it increasingly difficult to stay ahead of bad actors. Fraudsters continuously adapt, finding new ways to exploit systems designed to serve the public good. The Human + AI partnership is a powerful approach that combines the best of human judgment and creativity with the efficiency and scale of artifi

An individual who worked in a federal warehouse noticed that he had admin access to the inventory control system just a week after being hired—insane, right? He realized there weren’t a lot of controls, so he electronically depleted inventory, which triggered automatic reorders. The goods never left the shelves, but he rerouted the orders to shell companies run by his family and friends. Over time, he pulled out over a million dollars, buying houseboats, speedboats, and even

It’s 2025 and we need to talk about AI.  Kelly speaks to Chief Product Officer at Tracklight, to discuss the impact of AI on fraud detection and prevention. Amanda recounts her career journey from aspiring lawyer to law enforcement officer, then making significant leaps into tech startups and AI-driven fraud prevention. She emphasizes the importance of using AI to think like fraudsters for proactive measures, detailing how Tracklight leverages AI for public benefit programs.

Imagine a criminal mastermind, sitting in the shadows, weaving together threads of real and fake information to create an entirely new person. This isn't the plot of a thriller movie - it's the unfortunate reality of synthetic identity fraud. In this post, we'll pull back the curtain on this invisible threat, exploring what it is, how it works, and most importantly, what you can do to protect your business. Buckle up, because we're about to dive into the fascinating world of

TrackLight is an AI-assisted fraud detection startup in El Dorado Hills that uses specialized AI models, machine learning and a library of 3,000 fraud schemes to scan open-source records to fight fraud, waste and abuse in government programs and for other customers. Greg Loos is CEO of fraud detection startup TrackLight. https://www.bizjournals.com/sacramento/inno/stories/awards/2025/01/01/startups-to-watch-2025-tracklight.html

Discussions about fraud, waste, and abuse in government programs are buzzing across America. As Amanda D’Amico , TrackLight’s Chief Product Officer, points out, the key question is: what’s next? How do we address systemic issues rather than just stopping at quick wins? “It is important to do that initial scan—that initial assessment of where we have the most waste or abusive government spending happening,” Amanda explains. “Where is the most fraud happening? Rooting out what

Fraud prevention in government programs isn’t just a job—it’s a balancing act. Amanda D’Amico, TrackLight’s Chief Product Officer, has spent her career navigating the complexities of programs that provide critical support to individuals and families in need. She understands the challenges firsthand:  “How do we get benefits to individuals in need as quickly as possible, as efficiently as possible, while protecting precious government resources and ensuring those benefits go t

Artificial Intelligence (AI) is a powerful tool. But in the world of fraud prevention, it’s only as effective as the expertise guiding it. I’ve spent over two decades in fraud detection, and one thing has always been clear: technology alone cannot replace the people behind vital government programs. Instead, it should act as a force multiplier , amplifying the capabilities of fraud fighters like you and me. Here’s the reality: while we’re debating how to use AI ethically, the

Fraud doesn’t always arrive with a loud crash—it sneaks in quietly, like a late-night phone call in an empty office. For Mike, this truth hit home early in his career when a simple ringing phone uncovered a payroll fraud scheme and set the stage for his life’s work in uncovering fraud. Here’s how Mike’s story unfolded—and the lessons it offers for anyone working to create fraud-resistant systems in today’s digital age. Red Flags and Ringing Phones In the early 1990s, Mike was

Fraud is a rapidly growing threat in today's digital world. In 2023, consumer fraud losses hit a record $10 billion in the US alone, jumping 14% from 2022 (FTC). Globally, fraud losses have reached an estimated $5.4 trillion, with financial services firms seeing nearly 10% increases in fraud costs (University of Portsmouth, fraud.com ). With these rising threats, everyone needs to be aware of these essential fraud prevention tips. In honor of Fraud Awareness Week, I'm sharing

Fraud in federal grant programs like the Small Business Innovation Research (SBIR) Program often goes unnoticed until it’s too late. However, with the right tools and proactive measures, these schemes can be identified and stopped early. This post is a reflection a SBIR fraud case I worked in the past that highlights the importance of data-driven oversight.   The Case: A Tale of Dual Identities One company claimed to operate out of a residential home in Idaho while using a ma

Introduction The U.S. Department of Housing and Urban Development (HUD) plays a critical role in providing affordable housing and urban development programs across the country. In addition, HUD must respond to housing crises in a timely fashion, while ensuring applicants are compliant and eligible with program regulations. Today’s systems can  make it difficult to balance the speed of the screening process with the need to deliver the benefits.  Artificial intelligence (AI) h

Medicare fraud is a pervasive issue that drains billions of dollars from the healthcare system each year. While much attention has been focused on fraudulent activities by healthcare providers, private insurers also play a significant role in this deceptive game, especially within the Medicare Advantage program. For government agencies and oversight professionals, understanding these schemes is essential to safeguarding the integrity of Medicare. Inflating Diagnoses One of th

Medicare fraud is a significant concern for government agencies and oversight professionals, impacting both financial resources and patient care. Among the various sectors implicated in fraudulent activities, the pharmaceutical industry stands out due to its complex interactions with healthcare providers, pricing regulations, and drug approvals. Understanding how pharmaceutical companies can be associated with Medicare fraud is crucial in identifying and mitigating these risk

One of the most interesting parts of anti-fraud research is using applied math and machine learning techniques for analysis and novel feature engineering development. In this space we can use statistics to build on previously conducted research in social science areas such as behavioral psychology and linguistics. This helps us better understand how fraud practically manifests in the data. One recent analysis highlights how this can be used to leverage data and understand wha

Medicare fraud is a critical issue affecting the healthcare system, with individual healthcare providers playing a significant role, sometimes unknowingly. For government agencies and oversight professionals, understanding the various ways in which providers can be associated with Medicare fraud is essential for implementing effective prevention and detection strategies. Billing for Services Not Rendered One common fraudulent practice involves submitting claims for procedures

The Office of Management and Budget published its annual governmentwide report on improper payments, but a fraud expert says they aren’t entirely reliable. Improper payments, which put taxpayer dollars at risk, have been a long-term issue for the federal government, but they declined over the past year. However, there is more than meets the eye on this, according to a fraud risk expert.  Last Wednesday, the Office of Management and Budget published  its annual governmentwide

In this exclusive interview, Ethisphere Editor in Chief Bill Coffin speaks with Linda Miller , Principal, Advisory Services, Grant Thornton LLP, and Paul Sobel , Chairman of the Committee of Sponsoring Organizations (COSO) about the current state of fraud risk management, the development of a new COSO fraud risk management guide, and how life after COVID-19 is changing the fraud risk landscape for everyone. What does today’s fraud risk landscape look like, especially after s

If you weren’t aware that fraud and improper payments have become an urgent crisis in government programs, then you haven’t been paying attention. Improper payments during FY 2021 were estimated to be about $281 billion — a $75 billion increase from FY 2020 and more than double the amount reported in FY 2017. And while the pandemic created the opportunity for the most fraud in our nation’s history, this problem will not end with the pandemic. It’s time for Congress to create

Total improper payments have steadily increased since 2013 by $100 billion, from $106 billion to $206 billion. In October, the Office of Management and Budget published a guide for federal agencies to help them determine where to focus their efforts to reduce improper payments. The guide provides a complicated framework for calculating the extent that an agency’s improper payments are within its control and a method for conducting a quantitative analysis of the cost-benefit t