The True Cost of Chasing Fraudsters—And How to Fix It

Fraud investigations are notorious for being resource-intensive, pulling valuable personnel away from other critical work and often leading to a frustrating game of cat and mouse. The conventional approach to fighting fraud has always been to throw more resources at the problem—more staff, more money, more paperwork. But is that really the best way?

At TrackLight, we believe there’s a smarter, more efficient path forward.

Why Fraud Investigations Drain Resources

Investigating fraud is often a slow and manual process. Agencies must sift through vast amounts of data, verify documentation, and cross-check various sources to confirm suspicions. This process can take anywhere from 15 to 35 hours per case—a significant burden on already stretched teams.

As Clint Eisenhower, fraud expert at TrackLight, puts it:

"The default answer to fighting fraud is often to just spend more money or hire more people. But sometimes, the issue isn't funding—it's the manual, outdated processes and struggles to find accurate and actionable data that create bottlenecks."

The SBIR Fraud Analysis

To illustrate the power of technology in fraud prevention, TrackLight conducted an in-depth analysis of the Small Business Innovation Research (SBIR) Program, using publicly available data, open-source intelligence, and third-party datasets. The results were eye-opening:

• Timeframe: 2017–2023
• Scope: 30,000 awards across 11 agencies
• Total Value Analyzed: $17 billion
• Potential High-Risk Fraud Identified: 35% ($6 billion)

Even with limited data access, TrackLight uncovered patterns and anomalies that pointed to significant fraud risks—all in just six weeks. Compare that to the months (or years) it might take an investigation team to reach the same insights.

The High Cost of Inefficiency

Every hour spent chasing fraudsters is an hour not spent improving program delivery, providing services, or focusing on innovation. Fraud drains resources in multiple ways:

1. Opportunity Cost: Skilled personnel spend time on manual investigations instead of strategic initiatives.
2. Financial Losses: The longer fraud goes undetected, the more money is lost.
3. Public Trust: When fraud persists, it erodes trust in government programs and public institutions.

How TrackLight Reduces the Burden

TrackLight’s solutions are designed to streamline fraud detection by leveraging AI, automation, and data-driven insights. Our technology doesn't just flag potential fraud; it triages cases and provides actionable intelligence that agencies can use to make quicker, more informed decisions.

Key Benefits of TrackLight’s Approach:

• Rapid Lead Processing: TrackLight's investigative LLM reduces research and triage time from 15 hours to just 15 minutes.
• Prioritized Risk Assessment: Our system categorizes cases using a red-yellow-green framework to guide investigators efficiently.
• Cost Avoidance: By identifying fraud earlier, agencies can prevent losses before they occur, rather than chasing fraudsters after the fact.
• Scalability: Whether processing thousands or millions of transactions, TrackLight can scale effortlessly to meet demand.

The Ripple Effect

Reducing the burden of fraud investigations has far-reaching benefits for agencies and the public alike:

• Faster Benefit Delivery: Legitimate applicants receive funds more quickly without being caught in bureaucratic delays.
• Operational Efficiency: Teams can focus on program improvements rather than investigations.
• Budget Optimization: Resources are allocated more effectively to areas that truly need them.

Smarter Fraud Prevention, Not More Spending

Fraud prevention shouldn’t mean an endless cycle of adding resources—it should mean using better technology to make the most of what agencies already have. TrackLight empowers agencies to fight fraud smarter, faster, and more cost-effectively.

With fraudsters becoming more sophisticated, it’s time agencies level the playing field with tools that provide real-time insights and automated risk detection.