Fraud prevention efforts often struggle to keep up with increasingly sophisticated fraud schemes. Billions of taxpayer dollars are lost every year, and yet agencies frequently find themselves trapped in a cycle of reactive measures rather than proactive solutions. But why do these efforts fall short—and more importantly, how can technology like TrackLight help fix it?
The Core Issue: Lack of Planning and Strategy
According to Clint Eisenhower, fraud expert at TrackLight, the biggest reason fraud prevention fails is a lack of planning and understanding of root causes. Agencies often focus on stopping fraud after it has occurred, rather than analyzing why and where it's happening in the first place.
“You have to step back and look at the big picture,” says Eisenhower. “Developing a fraud strategy means taking inventory of all the processes, policies, systems, and data that impact a program’s integrity.”
Without a clear, comprehensive fraud strategy, agencies risk:
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Implementing one-off solutions that don’t address systemic vulnerabilities.
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Missing key data points that reveal patterns of fraudulent activity.
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Wasting resources chasing fraudulent claims instead of preventing them.
Step 1: Build an Enterprise Fraud Risk Inventory
A successful fraud strategy starts with enterprise risk management. Agencies need to conduct a comprehensive inventory of:
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Processes – Are internal workflows creating gaps for fraudsters to exploit?
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Policies – Are outdated or inconsistent policies making enforcement difficult?
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Systems – Are legacy systems unable to keep up with modern fraud techniques?
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Data – Are agencies using the right data to detect anomalies?
Once this inventory is in place, agencies can identify where vulnerabilities exist and assess their root causes.
Step 2: Moving from Qualitative to Quantitative Insights
Traditionally, agencies rely on qualitative assessments to identify fraud risks. While valuable, qualitative insights alone often fall short. Quantitative analysis powered by TrackLight takes fraud detection to the next level by:
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Using AI to analyze vast data sets and pinpoint fraud patterns.
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Validating fraud vulnerabilities with data-driven insights.
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Demonstrating the impact of mitigation strategies with measurable results.
“You can do assessments qualitatively, but even better is when you use data to back up root causes and prove your solutions are working,” says Eisenhower.
With TrackLight’s AI-assisted risk assessment, agencies can stop relying on hunches and start building fraud prevention strategies rooted in hard data.
Step 3: Implementing Targeted Fraud Mitigation Measures
Once the root causes are identified, agencies can develop specific strategies to close fraud gaps. This could include:
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Policy changes – Adjusting eligibility requirements or strengthening verification steps.
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Process improvements – Streamlining application reviews to reduce manual errors.
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System enhancements – Integrating AI-powered fraud detection tools like TrackLight to monitor applications in real time.
TrackLight doesn’t just help identify where fraud is happening—it provides actionable insights to drive policy and operational improvements that create long-term change.
Real-World Impact: Tackling Pandemic Unemployment Fraud
During the COVID-19 pandemic, unemployment insurance programs faced an unprecedented wave of fraud. Fraudsters exploited overwhelmed systems with stolen identities and falsified documents, costing the government billions.
Agencies that lacked a proactive fraud prevention plan found themselves unable to keep up, while legitimate applicants faced frustrating delays.
With TrackLight’s proactive approach, agencies could have:
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Quickly identified fraudulent applications through real-time data analysis.
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Implemented automated risk scoring to prioritize legitimate claims.
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Measured the effectiveness of new fraud controls with built-in performance metrics.
The Future of Fraud Prevention: Data-Driven and Proactive
Fraud prevention must evolve beyond reactive measures. Governments need smarter, AI-driven solutions that continuously learn and adapt to evolving threats. TrackLight offers agencies a way to:
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See fraud vulnerabilities before they become major problems.
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Use data-backed insights to take decisive action.
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Prove that their fraud prevention efforts are working with performance metrics.
Fraud doesn't have to be an inevitable cost of doing business in government programs. With the right tools and a strategic, data-driven approach, agencies can take control and ensure taxpayer dollars are protected.
