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.
During the pandemic, state agencies were overwhelmed with an unprecedented number of unemployment claims. Fraudsters exploited weak systems by using stolen identities, filing fake claims, and raking in funds meant for struggling families. Meanwhile, millions of legitimate applicants were left waiting in bureaucratic limbo.
Clint Eisenhower, a fraud prevention expert at TrackLight, recalls, “Daily, we were seeing instances where fraudsters were receiving unemployment insurance benefits through stolen identities and providing false information. Meanwhile, state agencies were overwhelmed with the number of applications and couldn't keep up. It was tough watching good people struggle while fraudsters boasted online.”
When fraudsters steal from government programs, it's not just taxpayer money that's lost—it's real people who suffer:
Families in Need: Those who genuinely require assistance face delays and denials, leading to financial hardships, eviction risks, and food insecurity.
State Agencies: Already stretched thin, they struggle with resource allocation, diverting efforts away from legitimate cases to fraud investigations.
The Economy: Fraud undermines public trust in government programs and can lead to higher taxes or budget cuts elsewhere.
TrackLight is tackling this challenge head-on with an intelligent, AI-driven approach that helps agencies quickly identify fraud while ensuring benefits get to those who need them.
Our solution follows a green, yellow, red framework:
🟢 Green: Verified applicants receive benefits without delay.
🟡 Yellow: Cases that require further due diligence are flagged for review.
🔴 Red: Suspicious applications are stopped immediately, preventing further losses.
This proactive system not only saves taxpayer dollars but ensures that government resources are allocated fairly and efficiently.
Fraud prevention isn't just about stopping bad actors; it's about ensuring a fair and efficient system that works for everyone. The COVID crisis was a lesson in what happens when fraud goes unchecked—now, it's time to build smarter systems that prioritize integrity.
At TrackLight, we believe fraud prevention shouldn't come at the cost of accessibility. Our tools help governments fight fraud and deliver services effectively.
TrackLight is tackling the challenge of government fraud head-on with an intelligent, AI-driven approach that helps agencies quickly identify fraudulent activity while ensuring benefits reach those who genuinely need them.
Our solution is built on a “green, yellow, red” framework, which offers a clear, actionable way to manage and mitigate fraud risks efficiently:
🟢 Green (Approved): Verified applicants receive benefits without delay. TrackLight’s AI rapidly cross-references applications with authoritative data sources, such as tax records, employment verification systems, and social security databases. If no red flags are detected, the application moves through the system seamlessly, helping citizens get the help they need without unnecessary friction.
🟡 Yellow (Review Needed): Cases that require further due diligence are flagged for manual review. These applications may have minor inconsistencies—such as mismatched addresses, unusual activity patterns, or missing documentation. TrackLight helps investigators prioritize these cases using risk scores and provides actionable insights to resolve them quickly.
🔴 Red (Stop Immediately): Suspicious applications are blocked immediately, preventing further losses. TrackLight’s advanced analytics identify known fraud patterns, such as duplicate submissions, stolen identities, or connections to previously flagged fraud rings. These applications are escalated for investigation, stopping bad actors before they can exploit the system.
TrackLight’s fraud prevention approach isn’t limited to unemployment benefits. It can be applied across a wide range of government programs where fraud is prevalent, ensuring public funds are used appropriately and efficiently.
Healthcare fraud costs taxpayers billions each year, with schemes such as phantom billing, kickbacks, and identity theft. TrackLight’s AI can:
Verify provider credentials and identify any past criminal activity or debarment.
Identify abnormal treatment patterns that deviate from standard care practices.
Flag suspicious networks of providers and beneficiaries working together to defraud the system.
Example:
A provider submits that they are not debarred from Medicare or Medicaid. TrackLight finds that they are debarred in one state Medicaid program, thus rendering them ineligible to participate in Medicare or state Medicaid programs (🔴 Red).
Federal grant programs are susceptible to fraudulent applications, particularly in times of economic relief. TrackLight’s fraud prevention system can:
Detect businesses with falsified financial records or fabricated employee rosters.
Identify entities applying for multiple grants using slight variations in business names.
Prevent funds from being diverted to shell companies or foreign entities.
Example:
During the Paycheck Protection Program (PPP), fraudsters used fake business registrations to claim relief funds. TrackLight would flag duplicate addresses or inconsistent payroll reports for further review (🟡 Yellow).
Public assistance programs such as SNAP (food stamps) and housing subsidies are often targeted by fraudsters who provide false information to qualify for benefits. TrackLight helps by:
Cross-referencing applications with income verification and employment records.
Identifying anomalies such as high-earning individuals applying for low-income benefits.
Detecting repeated use of stolen identities across different states.
Example:
An individual applies for benefits and provides information including household composition. TrackLight’s system detects that the household composition may be inaccurate and flags it for review (🟡 Yellow).
Fraud spikes in the aftermath of natural disasters when funds are distributed rapidly. TrackLight can:
Validate property ownership and damages through data integrations with insurance records.
Identify fraudulent claims submitted from out-of-state or repeat claimants.
Track spending patterns to detect potential misuse of relief funds.
Example:
After Hurricane Katrina, fraudulent claims were rampant. TrackLight would have cross-checked addresses with FEMA data to block invalid claims (🔴 Red).
TrackLight’s AI-driven fraud detection is effective because it combines:
Fraud prevention isn’t just about stopping bad actors—it’s about building trust in government programs and ensuring taxpayer dollars are used responsibly. TrackLight’s “green, yellow, red” framework empowers agencies to operate more efficiently, striking the balance between security and accessibility.
As fraud schemes evolve, so do our tools. By leveraging AI, social network analysis, and continuous monitoring, TrackLight remains a step ahead, ensuring public programs serve those who need them most.