Department of Justice Announces Launch of National Fraud Detection Center to Combat Fraud Against Taxpayer-Funded Programs
The U.S. Department of Justice launched the National Fraud Detection Center to coordinate multi-agency efforts against fraud targeting taxpayer-funded programs, including cross-program schemes.
The U.S. Department of Justice unveiled the National Fraud Detection Center (NFDC), a prosecutor-led initiative uniting federal and state agencies to combat fraud across taxpayer-funded programs. The center will pool investigative resources, analytical tools, and cross-agency data to generate criminal leads and enhance prosecutions. Assistant Attorney General Colin McDonald emphasized the NFDC’s role in dismantling institutional barriers and leveraging shared technology to close loopholes exploited by fraudsters. The announcement underscores the government’s commitment to holding accountable those defrauding federal programs, regardless of their location.
The NFDC addresses longstanding gaps in cross-program oversight that previously allowed fraudsters to evade detection by operating across multiple federal programs. By integrating partners from federal, state, and inspector general offices, the center will adopt a whole-of-government approach to eliminate fraud. Inaugural members include the FBI, IRS Criminal Investigation, Homeland Security Investigations, and the Offices of Inspector General for agencies such as Agriculture, Health and Human Services, and Veterans Affairs. The collaboration aims to identify and prosecute the most harmful fraud schemes, both domestically and internationally.
State partners, including Secretaries of State and State Treasurers from Alabama, Florida, Georgia, Louisiana, Mississippi, Ohio, and South Carolina, will contribute to the NFDC’s efforts. Their involvement strengthens the center’s capacity to detect fraud and protect taxpayer funds. The initiative is led by Acting Assistant Director Amanda Riedel and Acting Chief Cody Matthew Herche, who will oversee the coordination of resources and prosecutions. The NFDC represents a coordinated response to fraud, waste, and abuse in federal benefit programs.
The NFDC’s creation aligns with the Justice Department’s broader Fraud Division, established on April 7 to focus on investigating and prosecuting fraud against American taxpayers. This effort supports President Trump’s Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance, which targets fraud, waste, and abuse in federal benefit programs. Recent cases, such as the indictment of individuals like Louis Trejo and the guilty plea of a Mississippi man for tax evasion, highlight the ongoing enforcement actions tied to these initiatives.