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Criminals can turn stolen identities bought on the dark web into seemingly legitimate businesses — then use those companies to bill taxpayers for healthcare and other services that were never provided, according to a fraud expert who detailed the scheme to Fox News Digital.
The companies can hide in plain sight: Criminals create LLCs using information that may receive little scrutiny, pair them with stolen identities and submit fraudulent claims for everything from wheelchairs and diabetes treatments to childcare and autism services, according to Haywood Talcove, CEO of LexisNexis Risk Solutions Government.
But Talcove said the financial losses are only the beginning, warning the schemes can fuel “criminal enterprises.”
“They are using our money against us, whether it’s in social media campaigns, whether it is for human trafficking, drugs,…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.