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A nationwide business-aid fraud crackdown — highlighted by a bizarre Missouri scheme involving alleged stolen corporate identity — is among the enforcement actions being highlighted during the federal push dubbed “Fraud Week.”
The announcement is part of the Department of Justice’s National Fraud Enforcement Division’s nationwide summer surge. It netted more than 160 criminal defendants and approximately $245 million in intended losses to taxpayers, according to DOJ, as the agency announced busts from Los Angeles to Philadelphia.
“This is the problem of our day,” said U.S. Attorney Matt Price of the Western District of Missouri, whose office was one of 44 involved in the greater “Heartland Fraud Surge” that encompassed June through Sept. 1. “And this is a response to what happened over the previous four years,”
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This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.