DOJ Launches New Center to Detect Fraud Across Federal Programs
The Department of Justice (DOJ) launched a new fraud detection center to coordinate law enforcement efforts against fraud in federal government programs.
DOJ calls the center a “decisive shift in how the federal government detects and investigates complex fraud.”
The National Fraud Detection Center (NFDC) is a prosecutor-led, multi-agency team that brings together law enforcement agencies to share data, technology, and analytical capabilities. The goal is to “generate criminal leads to drive more impactful prosecutions.”
According to a press release, the NFDC will tackle a key problem: the lack of cross-program visibility that has hampered efforts to detect fraud. For example, while agencies have tracked fraud within their own programs, there has been limited visibility into tracking schemes that target several programs at once. The NFDC aims to close that gap by bringing in partners from federal and state governments.
“By breaking down institutional silos, embedding analysts from across the IG community, and leveraging shared technology, the NFDC is actively closing the window of opportunity for bad actors who seek to exploit taxpayer dollars,” said Assistant Attorney General Colin McDonald of DOJ’s National Fraud Enforcement Division.
Founding partners include the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), IRS Criminal Investigation (IRS-CI), the Treasury Inspector General for Tax Administration (TIGTA), the Pandemic Response Accountability Committee, Offices of Inspector General for several agencies, and others.
Early state partners include South Carolina, Florida, Alabama, Mississippi, Georgia, Louisiana, and Ohio.
The NFDC is the latest initiative from DOJ's National Fraud Enforcement Division, which was formally launched in April as part of the department's broader effort to fight fraud against taxpayer-funded programs. Its work also supports President Trump’s task force to eliminate fraud.
