DOJ launches National Fraud Detection Center as GSA reports $13B in suspected procurement fraud

The Department of Justice has launched the National Fraud Detection Center to target complex fraud in federal programs, aligning with the White House Task Force to Eliminate Fraud. Concurrently, the General Services Administration announced a record-setting $13 billion in suspected procurement fraud uncovered since March 2026. While officials pledge aggressive enforcement, procurement advocates caution that these suspected cases must still be adjudicated and highlight staffing challenges.

National Fraud Detection Center launch

• ▪The National Fraud Detection Center is led by Amanda Riedel, acting assistant director of the Executive Office for U.S. Attorneys, and Cody Matthew Herche, acting chief of the Global Trade and Commerce Enforcement Section.
• ▪The Department of Justice launched the National Fraud Detection Center on August 24, 2026, to investigate major fraud involving federal government programs.
• ▪The National Fraud Detection Center is designed to close a long-standing gap in cross-program visibility that has allowed fraud schemes to target taxpayer-funded programs without detection.

GSA $13 billion fraud discovery

• ▪The $13 billion in suspected procurement fraud is the largest suspected fraud bust in the history of the General Services Administration.
• ▪The General Services Administration announced on August 25, 2026, that it has uncovered $13 billion in suspected procurement fraud since March 2026.
• ▪The General Services Administration stated it will refer suspected fraudsters to the Office of the Inspector General or the Department of Justice for investigation.
• ▪Since January 2025, the General Services Administration has prevented $202.2 million in fraud through administrative actions and recovered $29.5 million through enforcement actions, according to Fraud.gov.

White House fraud task force

• ▪The General Services Administration uncovered the $13 billion in suspected fraud in collaboration with the White House Task Force to Eliminate Fraud using contracting data, public reporting, and inspector general enforcement information.
• ▪The Justice Department's fraud enforcement work and the General Services Administration's fraud discovery support President Donald Trump's Task Force to Eliminate Fraud, chaired by Vice President JD Vance.

DOJ fraud enforcement expansion

• ▪The launch of the National Fraud Detection Center occurred approximately four months after the creation of the Department of Justice's Fraud Division.
• ▪Assistant Attorney General Colin McDonald cited Government Accountability Office estimates that the federal government loses between $233 billion and $521 billion annually to fraud.
• ▪The Department of Justice's Fraud Division has grown to approximately 500 attorneys and staff and is planned to continue expanding over the next two years.

Procurement fraud detection challenges

• ▪Tim Brennan, president of the Center for Procurement Advocacy, stated that suspected procurement fraud differs from adjudicated incidents and noted that contracting officers face heavy workloads and staff reductions.
• ▪The General Services Administration is conducting reviews of COVID-19 spending, the Small Business Administration's 8(a) program, contractor eligibility, bid rigging, cybersecurity false claims, and bribery.
• ▪Some examples of suspected fraud included in a Breitbart News report on the General Services Administration's discovery predate the launch of the White House Task Force to Eliminate Fraud.

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