Fraudsters rarely operate within the boundaries of a single agency or jurisdiction, but the information needed to stop them often does. The new National Fraud Enforcement Division is designed to close that gap by bringing together federal, state, and local agencies to identify patterns, connect cases, and target organized criminal networks.
The division operates under the Justice Department, with partners ranging from IRS Criminal Investigation and FinCEN to several federal Inspectors General and multiple state agencies. The NFED has also established a Division Fraud Counsel role within every U.S. Attorney’s Office to focus on fraud networks operating in multiple jurisdictions.
“This has the potential to be effective because one agency may see fraud involving a federal program, while a state agency has data that helps connect it to a larger scheme,” said Jennifer Pitt, Senior Analyst in Fraud Management at Javelin Strategy & Research. “Bringing that information together can help investigators see relationships between cases that may otherwise look separate.”
Looking for Patterns with AI
A key part of the NFED’s approach is using AI to identify connections across large volumes of data. Drawing on information from participating agencies, the NFED will use what it calls an advanced AI environment to analyze data and help investigators identify potentially suspicious patterns.
According to the DOJ, these capabilities are intended to help investigators spot patterns more quickly and coordinate investigations across subject-matter areas. The agency also hopes the approach will lead to more investigations originating from the analysis of claims, financial, tax, and other government data, rather than relying primarily on complaints from whistleblowers or voluntary disclosures.
A Model for Other Coordinated Efforts
Fraud continues to evolve alongside the technologies that enable it. Social media has created new channels for scams, while AI has given criminals additional tools to scale and refine their operations. The U.S. Federal Trade Commission found that consumers experienced $15.9 billion in fraud losses in 2025, a 27% increase from the prior year.
The NFED’s emphasis on bringing together data, agencies, and investigative resources also highlights the role that information sharing can play in identifying complex fraud schemes.
“The NFED is focused on fraud involving taxpayer-funded programs, such as Medicare, Medicaid, SNAP, and student loans,” said Pitt. “I’d love to see a similar model developed for consumer fraud. Banks may see one part of the fraud, while social media companies, telecom providers, tech platforms and law enforcement may each have other information that helps connect it. Better information sharing could help them see the full picture and connect activity to larger fraud rings.”
