Tag: fraud

US SNAP Payment-Error-Rate Hits High Of 10.62%

The national payment error rate for the Supplemental Nutrition Assistance Program (SNAP) hit 10.62 percent for Fiscal Year (FY) 2025, far exceeding the 6 percent threshold set by Congress.

“While this is a modest decrease from FY 2024, the FY 2025 rate still shows significant waste at the state level,“ the U.S. Department of Agriculture (USDA) said in a June 24 statement.

”Including both overpayments and underpayments, this year’s rate represents a collective $10.1 billion in improper payments nationwide.”

The payment error rate measures how accurately states calculate SNAP eligibility and the amounts that beneficiaries receive.

The One Big Beautiful Bill Act, signed into law by President Donald Trump last year, established a State Quality Control Incentive provision under which states must pay a percentage of SNAP program bills if their payment error rate exceeds a certain limit.

A state with an error rate of 6 percent to 8 percent will be required to fund 5 percent of the benefits. This scales up as error rates get higher. States with error rates of 10 percent or more must fund 15 percent of benefits.

“[This has instituted] real financial consequences for states that mismanage taxpayer dollars,” the USDA stated, noting that these rules could come into effect as soon as Oct. 1, 2027.

States with error rates exceeding 6 percent are also required to submit a Corrective Action Plan to the USDA’s Food and Nutrition Service, explaining how they intend to address the root causes of the high error rates. Some states may end up getting financially penalized.

“These payment error rates are further proof that state accountability is severely lacking in SNAP,” Agriculture Secretary Brooke Rollins said.

“USDA has taken historic action to help interested states curb SNAP waste, and I hope other states, regardless of political leadership, prioritize needy families and the American taxpayer over politics.”

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Leader of Minnesota’s Feeding Our Future Fraud Scheme Arrested in Somalia

The leader of the largest Minnesota pandemic-era fraud scheme was arrested in Mogadishu, Somalia, this week.

Abdikerm Eidleh, 43, was finally taken into custody this week, more than three years after he was indicted in the ‘Feeding Our Future’ fraud probe.

A total of 78 people were indicted or charged by the DOJ in connection with the $350 million Feeding Our Future scheme.

CBS News reported:

An alleged leader of the largest pandemic-era fraud scheme in the country was arrested overseas after being on the run for more than four years, according to federal officials.

Abdikerm Eidleh, 43, was arrested in Mogadishu, Somalia, earlier this week in a daytime raid coordinated by both the FBI and Somali intelligence agencies. He was indicted in September 2022 as part of the sweeping $250 million Feeding Our Future fraud investigation.

“This is a big fish,” Daniel Rosen, U.S. Attorney for Minnesota, told CBS News. “Eidleh was a key leader and was responsible for bribing and recruiting business to steal from the American taxpayer.”

Rosen said Eidleh was “second in command” to Aimee Bock, the convicted ringleader of the scheme, who was just sentenced to more than 40 years in prison.

Investigators allege Eidleh personally collected $5 million in bribes and kickbacks after instructing restaurants and catering businesses to inflate receipts submitted to the Minnesota Department of Education for reimbursement.

Earlier this month, one of the FBI’s most wanted fraud suspects in the massive Feeding Our Future scandal was finally returned to face justice.

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Nursing School Owner Pleads Guilty After Issuing Nearly 3,000 Fake Diplomas

Carleen Noreus, who owned two nursing schools in South Florida, has pleaded guilty to her role in a scheme that sold nearly 3,000 fraudulent nursing diplomas, the Department of Justice (DOJ) said in a June 18 statement.

The defendant, 52, from Plantation, Florida, was president of the Carleen Home Health School Inc. in Plantation and vice president of Carleen Home Health School II Inc. in West Palm Beach.

“Noreus conspired with others to sell fraudulent nursing diplomas and educational transcripts to individuals who had not completed the required coursework or clinical training to earn Registered Nurse (RN), Licensed Practical Nurse/Vocational Nurse (LPN/VN), or Bachelor of Science in Nursing (BSN) credentials,” the DOJ said.

“The fraudulent diplomas and transcripts falsely represented that purchasers had successfully completed the academic and clinical requirements of the schools when, in reality, they had not.”

The documents allowed the buyers to take part in national nursing board examinations. Those who passed the exams obtained nursing licenses and employment in the healthcare sector.

In total, Noreus provided 2,956 fraudulent nursing diplomas through her two schools between April 17, 2018, and Oct. 8, 2025. Of the individuals who obtained fake credentials, roughly 2,274 passed the nursing exams, secured licenses, and gained employment in Florida and other parts of the United States. Both institutions have been shut down by state authorities.

The case is part of the second phase of Operation Nightingale, a multi-state law enforcement action launched in January 2023 to arrest individuals who sell fraudulent nursing degree diplomas and transcripts.

The operation led to 25 individuals being charged for the fraud scheme in January 2023. In a Jan. 25, 2023, statement, the DOJ said that more than 7,600 fake nursing diplomas were issued by three nursing schools in South Florida.

On Sept. 15, 2025, the DOJ said that 30 defendants were charged and convicted in 2023 as part of the operation. In addition, the department also announced charges against 12 people in phase two of Operation Nightingale.

Thirteen individuals have been charged in the second phase, including Noreus, the DOJ said in its latest statement. Noreus, who pleaded guilty to conspiracy to launder money and conspiracy to commit wire fraud, faces a maximum penalty of 20 years in prison for each count.

“Nursing licenses must be earned through education, training, and demonstrated competence, not purchased through fraud,” said U.S. Attorney for the Southern District of Florida Jason A. Reding Quiñones.

“By selling thousands of fraudulent diplomas and transcripts, the defendant undermined the integrity of the nursing profession and our healthcare system. The Southern District of Florida remains committed to holding accountable those who profit by corrupting professional licensing processes and placing the public at risk.”

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FBI Busts Multimillion Dollar Fraud Schemes Across the Country

The Federal Bureau of Investigation (FBI) has busted several fraud schemes across the country in recent weeks, FBI Director Kash Patel said in his latest weekly update to the agency.

Patel highlighted some of the results of Operation Riptide, which focuses on “criminal actors and the key services they rely on, their infrastructure, their tools and services, their communications platforms, and their money.”

FBI Cleveland, for instance, disrupted a Chinese phishing platform “linked to the theft of millions of credit card numbers and nearly $1.9 billion dollars in losses worldwide,” Patel revealed.

As a result of the efforts of the FBI in Charlotte, two individuals were convicted for operating a business email compromise scheme that stole $25 million from U.S. companies.

“Thanks to FBI Boston, our Cyber Division, and international partners, we helped dismantle a VPN service used by ransomware groups around the world,” Patel said, later adding, “This is exactly what Operation Riptide is about: targeting the cybercriminal ecosystem at every level. And we’re just getting started.”

Fraudsters have also been targeted by the FBI. In Los Angeles, for instance, an Orange County man was arrested “for carrying out a nearly $100-million-dollar bank fraud scheme,” according to Patel.

“Thanks to FBI Milwaukee, a Wisconsin man pleaded guilty to defrauding nearly 190 investors out of more than $14 million dollars. Out of New Orleans, a Texas man was indicted for running a $4-million-dollar investment fraud scam that victimized more than 20 people,” he said, noting that a Texas couple has also been indicted “for stealing more than $2.5 million dollars from vulnerable victims through a years-long psychic fraud scheme” thanks to the FBI Seattle.

Patel added, “FBI Pittsburgh also announced charges against an Ohio woman accused of embezzling more than $460,000 dollars from a law firm while working as a paralegal.”

Further, seven individuals were arrested in Las Vegas for exploiting coronavirus relief programs, and in Alaska, one individual was sentenced to prison for defrauding those programs.

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Federal Judge Quashes Grand Jury Subpoenas Targeting Tim Walz, Mayor Jacob Frey in DOJ’s Immigration Enforcement Investigation

A federal judge on Monday quashed grand jury subpoenas issued to Minnesota Governor Tim Walz, Minneapolis Mayor Jacob Frey and other Minnesota officials.

US District Judge Patrick Schiltz, a George W. Bush appointee said the subpoenas were retaliatory.

The Justice Department in January issued subpoenas to Governor Tim Walz, Minneapolis Mayor Jacob Frey, Attorney General Keith Ellison, and other far-left Minnesota officials.

The DOJ previously launched a criminal investigation into Minnesota Governor Tim Walz and far-left Minneapolis Mayor Jacob Frey for interfering with ICE operations.

According to CBS News, the investigation centered around public statements made by Walz and Frey.

Thousands of federal agents were deployed to Minneapolis to arrest illegal alien criminals earlier this year.

Both Governor Walz and Mayor Frey have lashed out at the Trump Administration for dispatching ICE agents to Minnesota.

Mayor Frey demanded that residents and local police fight ICE agents in the street.

The DOJ issued subpoenas to six Minnesota officials.

“From the beginning of his current term in office, President Trump and members of his administration have taken aim at so-called “sanctuary” jurisdictions-that is, jurisdictions “that limit the use of local resources to assist in federal immigration enforcement,”” the judge wrote.

“President Trump has repeatedly insulted Minnesota generally and its Somali population in particular; targeted Democratic-led cities for expanded deportation efforts;3 asserted that Democratic officials who oppose the deployment of National Guard troops for immigration enforcement should be jailed; issued multiple executive orders threatening to cut off federal funding to “sanctuary” jurisdictions;5 and sued Minnesota and some of its political subdivisions seeking to invalidate state and local provisions limiting assistance to federal immigration officials,” the judge said.

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LAUSD Superintendent Alberto Carvalho resigns amid ongoing investigation

Los Angeles Unified School District (LAUSD) Superintendent Alberto Carvalho resigned on Sunday, bringing a abrupt end to his tenure leading the nation’s second-largest school system.

The resignation came nearly four months after the Federal Bureau of Investigation (FBI) executed early-morning search warrants at his San Pedro home and district headquarters, an ordeal that led the Board of Education to place him on paid administrative leave just days later.

Authorities have not publicly disclosed the exact nature of the federal investigation, though sources indicate it is tied at least in part to the district’s contract with AllHere, an educational technology firm that provided a short-lived artificial intelligence (AI) chatbot before collapsing into bankruptcy amid fraud charges against its founder.

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Ellison lashes out at reporter over $8B fraud question

Minnesota Attorney General Keith Ellison snapped at a reporter regarding his handling of the Minnesota fraud scandal after Vice President JD Vance demanded Ellison to be investigated by the Department of Justice (DOJ) amid a widely reported $8 billion Medicaid fraud scheme.

After a Fox News reporter inquired if there was anything Ellison would have done differently prior to the $8 billion fraud accusations, the attorney general replied quickly.

“So, that is a false number,” Ellison said. “The fact is, is that fraud is always wrong.”

“Why don’t you give me a break, man?” he continued. “Fraud is always wrong. We prosecute over 341 cases of Medicaid fraud.”

When the reporter stated he had wanted Ellison to clear up the number and was citing a variety of reports, Ellison continued to accuse the journalist of biased reporting.

“The number you mentioned is tightly identified with people of a very unique political persuasion—aligned with the Trump Administration,” the attorney general claimed

“It’s wrong though. And if you’re a real reporter, you should know that,” he said, pointing to the Fox News reporter.

“So, I’m done talking to you,” he snapped. “Bye-bye.”

The $8 billion figure has been frequently referenced by the House Oversight Committee as well as First Assistant U.S. Attorney Joe Thompson, who have stated that potentially billions of dollars were lost to fraud in Minnesota’s public assistance programs.

Thompson stated that investigators believe that about half of the $18 billion paid through 14 Medicaid programs since 2018 could have been part of a major fraud scheme.

The scandal captured national headlines due to congressional probes and numerous major fraud cases tied to federally funded programs in nutrition, education and Medicaid. Prosecutors also claim several nonprofits tapped off millions in taxpayer funds through sophisticated schemes, many of which expanded amid the COVID-19 pandemic.

Prominent examples, such as the Feeding Our Future scheme, have been linked to Minnesota’s Somali community. Investigators for the House Oversight Committee have also asserted that Ellison received several warnings about widespread fraud years before the scandal became public, based on interviews with state education, human services and executive branch officials.

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8 Frightening Forecasts For The Future Of Fraud

Fraud is entering a new era. Businesses across North America expect fraud trends like biometric fraud, deepfake scams, and synthetic identities to become more common in 2026 as criminals adopt faster and more sophisticated tools.

This visualization, created by Visual Capitalist’s Julia Wendling, in partnership with Inigo for the Fraud in Data campaign’s sixth post, uses data from the Sumsub Fraud Report 2025 to explore the fraud trends businesses believe will shape the future of digital risk.

Biometric Fraud Could Become the Biggest Threat

Surveyed businesses expect biometric fraud to rise the most, with 67% predicting an increase. As companies rely more on facial recognition, voice authentication, and remote onboarding, fraudsters are finding new ways to exploit those systems.

Deepfake technology is already making identity verification harder. In the future, AI-generated videos, cloned voices, and stolen biometric data could make fraud attempts more convincing and more scalable than ever before.

Businesses also expect synthetic identity fraud to grow, with 56% anticipating a rise. Criminals are increasingly combining real and fake information to create identities that can bypass traditional fraud checks.

AI and Deepfakes Are Changing Fraud Trends

Businesses expect fraud attacks to become more automated in 2026. Around 44% predict increases in advanced AI-driven attacks, deepfake scams, and forged identity documents.

Another 33% expect AI-generated fake profiles to rise as fraudsters use generative AI tools to impersonate real users online. These scams could become faster to produce and harder to detect across financial services, ecommerce, and digital platforms.

As fraud tactics evolve, businesses may need to shift from reactive fraud prevention toward real-time risk monitoring powered by machine learning and behavioral analysis.

Data Breaches Will Continue to Fuel Identity Fraud

Data breaches are expected to remain a major source of fraud risk. About 33% of businesses anticipate more identity theft linked to stolen personal data.

Organized fraud networks are also expanding, according to 22% of respondents. As cybercriminal groups become more coordinated, fraud operations could become increasingly global and industrialized.

The Future of Fraud Trends

Companies that invest in adaptive verification systems, stronger cybersecurity, and understand the data around fraud prevention may be better positioned to respond to the next generation of threats.

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FBI Warns That Fake FIFA Website Being Used to Steal Personal Information

The FBI on June 16 advised people to be wary of fraudulent websites that try to mimic World Cup or FIFA sites, as the agency warned that such websites have been used to steal personal information and sell counterfeit tickets.

In a public service announcement, the FBI stated that scammers and fraudsters have launched spoofing attempts designed to mimic FIFA’s official website as the World Cup games hosted in North America continue.

“Threat actors often create spoofed websites by slightly altering characteristics of legitimate website domains, with the purpose of gathering personally identifiable information entered by a user into the site, including name, home address, phone number, email address, and banking information,” the FBI statement reads.

The individuals behind such websites may be attempting to trick people into entering sensitive information that could be used to “create new accounts in a victim’s name and ultimately defraud the victim,” the FBI stated.

The federal law enforcement bureau noted that it has identified individuals who had attempted to collect personal information, sell counterfeit World Cup tickets or “hospitality products,” or engaged in other forms of malicious activity in connection with the scams.

The fraudulent website domains could include alternate spellings of words or use a different top-level domain, or TLD, referring to the final segment of the web address, such as .com, .gov, .org, and more, according to the notice.

Scammers may also create a deceptive version of a legitimate website, such as fifa.com, that tricks people into thinking they are going to the official website, it stated. Some include website domains that use alternate domain extensions such as “.blue,” “.beer,” “.city,” and more. Dozens of fraudulent domains were identified by the FBI that have been linked to the scheme, including fake domains related to FIFA jobs, merchandise, or tickets.

FBI officials advised people to first verify website URLs before they enter potentially sensitive or personally identifying information and to go to FIFA’s official website by typing the URL into their browser rather than relying on results produced by search engines, while also verifying that it reads fifa.com.

An Epoch Times review found that many of the websites listed by the FBI in the alert appeared to be down. However, the FBI stated that the “public should be aware that new websites will continue to appear.”

“Exercise caution when clicking on advertisements. Before clicking on an advertisement, check the URL to make sure the site is authentic,” the notice reads. “Malicious advertisements may redirect users to a different website than indicated.”

The June 16 public service announcement did not say whether anyone was victimized by a FIFA website-related scam. But victims who believe that they were targeted in a scam should file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov, it states

Aside from combating fake websites, the FBI has also acted to keep drones away from World Cup games. Earlier this week, an illegal immigrant with a prior criminal history, including a cocaine-trafficking conviction, was arrested for flying a drone near a World Cup event in Atlanta, the FBI announced.

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FBI Captures Fugitive Who Scammed $1.2 Billion in Medicare Fraud Hiding in the Philippines

Earlier in June, the FBI announced the arrest of a 60-year-old fugitive found residing in the Philippines who fled the United States after failing to appear for his sentencing in connection with pleading guilty to numerous federal charges involving healthcare fraud back in 2019.

FBI Director Kash Patel announced the arrest of 60-year-old Herbert Leon Kimble via social media on June 19th, highlighting how the apprehended fugitive was among those listed on the agency’s “Most Wanted Fraudsters” list.

According to authorities, Kimble had run a Medicare fraud scheme between 2014 and 2019, reportedly amassing $1.2 billion in ill-gotten gains from the scheme which largely targeted elderly beneficiaries. The aforementioned operation reportedly consisted of call centers attempting to convince patients to acquire medically unnecessary orthopedic braces.

In April of 2019, Kimble reportedly pleaded guilty to charges of conspiracy to defraud the United States and mail fraud among other similar charges, reportedly entering into an agreement with the federal government to help build cases “against other co-conspirators” which lasted for years. However, when Kimble was scheduled to appear in court on October 7th, 2024, for sentencing, he reportedly went on the run.

An international manhunt ensued, with authorities suspecting he was residing in Manila, Philippines. After nearly two years on the lam, authorities located the fugitive in the Philippines and he has since been returned to the United States, according to Director Patel.

In Director Patel’s statement regarding Kimble’s arrest, he emphasized, “President Trump set a mandate to end the abuse of hardworking taxpayer money and each and every day this team will be committed to delivering.”

Kimble’s arrest serves as the second high-profile apprehension carried out with respect to the FBI’s Most Wanted Fraudsters in recent weeks, with 47-year-old Said Abdullahi Ereg having been arrested earlier in June after self-surrendering to authorities in Minneapolis. Officials claim Ereg engaged in fraud totaling $4.2 million during the pandemic via submitting false claims of hot meals served to those in need under the Federal Child Nutrition Program.

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