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…
Insurance fraud involves making false or exaggerated claims to an insurance provider.
- Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
- Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.