On March 16, the White House released an Executive Order (EO) creating a task force to target fraud in federal benefit programs. Chaired by the vice president of the United States and vice chaired by the chair of the Federal Trade Commission (FTC), the task force is empowered to:
- Develop measures to change eligibility verification processes in federal benefits programs and maximize enforcement of eligibility requirements, including requirements within the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA);
- Coordinate with agencies to implement pre-disbursement controls to prevent improper payments and, when necessary, pause funding to address suspected fraud risk;
- Audit and ensure prospective compliance monitoring, including for use in identifying fraud in federal benefits programs
- Facilitate information and data sharing between federal, local and tribal…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.