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.
One of the biggest barriers to fraud prevention is the reliance on post-payment reviews—once funds have been disbursed, it becomes significantly harder to recover them. Fraudsters exploit gaps in eligibility screening, service provider enrollment, and financial management processes, often slipping through the cracks.
According to the Government Accountability Office (GAO), federal agencies reported an estimated $247 billion in improper payments in 2022 across 82 programs, with most occurring in Medicaid, Medicare, Unemployment Insurance, and the Paycheck Protection Program. These improper payments highlight systemic vulnerabilities that proactive fraud prevention can address. (GAO Report)
Clint Eisenhower, fraud prevention expert at TrackLight, advocates for a proactive stance—what he calls the "Three Front Doors" of fraud prevention:
Eligibility Screening: Ensuring applicants meet program criteria before receiving benefits.
Enrollment Verification: Vetting service providers to ensure they meet compliance requirements.
Financial Management: Conducting checks before payments are issued to confirm legitimacy.
To prevent fraud effectively, government agencies need accurate, verifiable data at each of these entry points. The GAO has repeatedly emphasized that over 80% of improper payments are due to overpayments, often stemming from weak data verification processes. Addressing these gaps can prevent billions in financial losses.
TrackLight leverages AI-driven data analytics and large language models (LLMs) to verify applications and flag discrepancies in real time. By integrating third-party data sources and automating screening processes, TrackLight ensures government funds reach those who truly need them. Our solutions align with federal priorities by reducing manual effort and enabling smarter decision-making.
Fraud prevention should not be an afterthought. By adopting a proactive, data-driven approach at the front door, agencies can achieve significant cost savings, enhance program integrity, and ultimately build public trust. Implementing solutions like TrackLight’s AI-powered screening can mitigate fraud risks while improving operational efficiency.
Government efficiency isn’t just about cutting costs—it’s about smart prevention. By stopping fraud before it starts, TrackLight empowers agencies to operate with confidence and transparency.