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Fraud investigations are notorious for being resource-intensive, pulling valuable personnel away from other critical work and often leading to a frustrating game of cat and mouse. The conventional approach to fighting fraud has always been to throw more resources at the problem—more staff, more money, more paperwork. But is that really the best way? At TrackLight, we believe there’s a smarter, more efficient path forward. Why Fraud Investigations Drain Resources Investigating

Improper payments cost the U.S. government $236 billion last year. Most of that money is gone for good — unrecoverable, untraceable, and ultimately unaccounted for. That’s not just a budget issue. It’s a structural failure in how we detect and prevent fraud. So, what’s going wrong?It starts with legacy systems. The Legacy Trap Most fraud detection tools were built for a different era — one where reactive audits were the gold standard and fraud was assumed to be an edge case.

Artificial Intelligence (AI) is revolutionizing fraud detection—there’s no doubt about it. From automating data analysis to detecting suspicious patterns in real time, AI is giving government agencies and businesses a powerful edge in the fight against fraud. But here’s the catch: AI isn’t a silver bullet. Fraudsters are clever, adaptive, and often know how to exploit the very systems designed to catch them. That’s why human expertise remains an indispensable part of fraud p

Understanding the distinctions between fraud, waste, and abuse within the federal government is crucial for maintaining the integrity and efficiency of public administration. These terms, while often used interchangeably, have specific definitions that help in identifying and addressing different types of misconduct.  Fraud, waste, and abuse Fraud involves intentional deception designed to secure an unauthorized benefit, either financial or personal. This includes false rep

Fraud is a high-stakes game—one that costs governments and businesses billions each year. And when it comes to preventing it, most organizations find themselves playing either offense or defense .  Team Offense: The Proactive Fraud Fighters  These are the teams drawing up plays before the fraudsters even take the field. They invest in risk analytics, monitor patterns, and use AI-powered insights to flag trouble early. Their strategy? Keep fraud from happening in the first pl

On March 25, President Trump signed an Executive Order that marks an ambitious effort to crack down on fraud, waste, and abuse in federal payments. It’s called "Protecting America’s Bank Account Against Fraud, Waste, and Abuse."   The order is the latest in a long line of federal initiatives aimed at improving financial oversight and transparency—goals that have challenged the federal government for decades. Several parts of the EO revive longstanding government efficiency id

Fraud prevention efforts often struggle to keep up with increasingly sophisticated fraud schemes. Billions of taxpayer dollars are lost every year, and yet agencies frequently find themselves trapped in a cycle of reactive measures rather than proactive solutions. But why do these efforts fall short—and more importantly, how can technology like TrackLight help fix it? The Core Issue: Lack of Planning and Strategy According to Clint Eisenhower, fraud expert at TrackLight, the

You’re navigating a bustling city, where every street and intersection represents a different aspect of your organization—departments, transactions, vendors, and employees. On the surface, everything seems orderly. Traffic flows, people go about their daily routines, and operations hum along smoothly.  But what if, beneath this seemingly normal landscape, hidden connections and unseen patterns were telling a different story? What if, amid the routine movement, small clusters

Every year, billions of taxpayer dollars are allocated to programs meant to support humanitarian aid, global health initiatives, and international development. These funds are intended to feed the hungry, provide medical care, and foster economic stability in struggling regions. But what happens when those well-intentioned dollars end up in the wrong hands?  The uncomfortable truth is that fraud, waste, and abuse plague government aid programs at an alarming rate. Funds meant

When we talk about government fraud, it often feels like an abstract concept—numbers on a spreadsheet, billions of dollars siphoned away into the ether. But fraud has very real consequences that impact everyday people in ways we don’t always see. The COVID-19 Unemployment Fraud Crisis: A Wake-Up Call During the pandemic, state agencies were overwhelmed with an unprecedented number of unemployment claims. Fraudsters exploited weak systems by using stolen identities, filing fak

As artificial intelligence (AI) continues to transform fraud prevention, the future of oversight depends on how effectively OIGs and federal programs embrace emerging technologies while addressing ethical considerations. The next phase of the AI arms race will require not only technological innovation but also collaboration, policy evolution, and a steadfast commitment to safeguarding the public trust.  Here’s a look at how oversight agencies can prepare for the future while

In the 1980s, while working as a bar back, Mike Peckham observed a bartender engaging in subtle yet consistent fraudulent activities. The bartender would manipulate cash register transactions, such as ringing up 'no sale' entries, to pocket cash unnoticed. This method, though seemingly minor, exemplifies how small-scale fraud can accumulate into significant losses over time. This scenario is a classic example of occupational fraud , where employees exploit their positions for

When I first got into fraud investigations, I never imagined that something as basic as boots could lead to a multi-agency investigation. But that’s exactly what happened with a company called Wellco Boots . At the time, my team at the Department of Defense (DoD) oversaw a $1 million per year contract with Wellco Boots to provide specialty footwear for warfighters and skilled workers like electricians training on our base. What started as a few complaints about poor-quality

The rise of AI-powered fraud has introduced a new era of challenges for federal oversight. From automated application fraud to synthetic identities and deepfakes, bad actors now wield tools that make detection harder than ever. But the same technology driving these threats can also be harnessed as a powerful defense.  Here’s how Offices of Inspectors General (OIGs) can leverage AI and proven strategies to protect federal programs and stay ahead in the fight against fraud.  Ha

A Perfect Storm for Fraud California’s wildfire season has reached catastrophic levels, with the Palisades and Eaton fires destroying over 15,000 structures and leaving 62,000 more at risk. The federal government has deployed billions in emergency aid to assist survivors, but with every disaster comes a secondary crisis: fraud. Disaster relief funds are a prime target for criminals, and the 2025 California wildfires are no exception. When money needs to move fast, oversight o

Government fraud is a persistent challenge, draining billions from essential programs and eroding public trust. Traditionally, efforts to combat fraud have focused on "pay and chase," but this reactive approach has proven costly and inefficient. As the Department of Government Efficiency (DOGE) emphasizes cutting waste and fraud, it's time for a proactive shift. The Systemic Issue: One of the biggest barriers to fraud prevention is the reliance on post-payment reviews—once fu

Artificial intelligence (AI) is revolutionizing fraud tactics, reshaping the threat landscape for federal oversight professionals. While AI holds promise for advancing fraud prevention and operational efficiency, it’s also being weaponized in ways that demand immediate attention from Offices of Inspectors General (OIGs) and oversight leaders.  Here’s what you need to know about how AI is driving new and unprecedented fraud threats against federal programs.  FraudGPT: The Mali

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

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

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

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