Department of Justice Announces Launch of National Fraud Detection Center to Combat Fraud Against Taxpayer-Funded Programs

Today, the U.S. Department of Justice announced the launch of the National Fraud Detection Center (NFDC), a prosecutor-led, multi-agency team designed to investigate the most harmful actors defrauding federal government programs, including illicit actors overseas and those operating fraud schemes across federal programs. The NFDC will bring together law enforcement agencies and analytical capabilities to generate criminal leads to drive more impactful prosecutions and enhance fraud-fighting results for the American people.

"The creation of the NFDC marks a decisive shift in how the federal government detects and investigates complex fraud," said Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division. "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. Today's announcement sends a clear message: if you defraud federal programs, we have the tools and the law enforcement partners to find you."

The NFDC solves for a lack of cross-program visibility that has long hindered efforts to deter fraud on taxpayer-funded programs and has enabled some fraud actors to further perpetrate schemes across multiple taxpayer-funded programs without detection. The NFDC closes this gap by bringing partners across federal and state government together to break down silos and work collaboratively in a whole-of-government approach to eliminate fraud.

The NFDC's success relies directly on the collaborative strength of our partners across federal and state government. The inaugural members of the NFDC include the Federal Bureau of Investigation, Homeland Security Investigations, IRS Criminal Investigation, FinCEN, the Pandemic Response Accountability Committee, the Treasury Department, and the Offices of Inspector General for the Departments of Agriculture, Education, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Labor, Veterans Affairs, Department of War Defense Criminal Investigative Service, the Treasury Inspector General for Tax Administration, Small Business Administration, and Social Security Administration. The NFDC presents a unified front to identify fraud across agencies and prosecute the most nefarious criminals, domestic and abroad.

The Department also extends its sincere gratitude to our state partners whose efforts further power the NFDC. We proudly acknowledge the leadership and contributions of the Secretaries of State of Alabama, Florida, Georgia, Louisiana, Mississippi, Ohio, and South Carolina; the State Treasurers of Florida, Mississippi, Ohio, and South Carolina; and the South Carolina Department of Social Services. These partnerships strengthen our capacity to detect fraud and protect taxpayer dollars.

This Fraud Division initiative is being led by Acting Assistant Director Amanda Riedel of the Executive Office of the U.S. Attorneys and Acting Chief Cody Matthew Herche of the Global Trade & Commerce Enforcement Section.

For more information on the Department's anti-fraud enforcement efforts, visit www.justice.gov/fraud.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.