In 2026, the U.S. Department of Justice created something it had never had before: a single division devoted entirely to fighting fraud. On August 13, 2026, the head of that new division, Assistant Attorney General Colin M. McDonald, issued a memo laying out what the division plans to do and where it will focus. Here is a plain-language look at what it means — and why it matters for anyone who could find themselves in the government’s crosshairs.
A New Division Built to Prosecute Fraud
The National Fraud Enforcement Division — the “Fraud Division” — was created earlier in 2026 by presidential directive, and its mission is straightforward: prosecute fraud across the country, no matter how large or complicated the scheme. The government says fraud is a massive problem, citing estimates that the federal government loses somewhere between $233 billion and $521 billion every year to it.
For the first time, the DOJ has a division dedicated to this one goal.
Scaling Up Fast
The Fraud Division is growing quickly. The Department is shifting resources from other parts of the DOJ to bring the division to roughly 500 attorneys and staff by late August 2026, with plans to keep expanding over the next two years.
In practical terms, that signals a serious increase in enforcement capacity. More prosecutors and investigators, working alongside U.S. Attorneys’ offices around the country, means more fraud cases brought and pursued.
Where Enforcement Will Focus
The division has identified five priority areas where it will concentrate its efforts:
• Public trust and financial integrity. This covers schemes that cheat the government and taxpayers — for example, government contracting fraud (bid rigging, bribery, overbilling, substituting cheaper products) and fraud against benefit programs like student loans, veterans’ benefits, disaster relief, and small business programs.
• Health care. The division will use data analysis to target health care fraud, including telemedicine schemes, Medicare and Medicaid fraud, home health and hospice scams that prey on elderly patients, kickbacks, and the illegal prescribing and dispensing of opioids and other controlled substances.
• Criminal tax enforcement. The division will pursue people who cheat on their taxes — dishonest return preparers, those who hide income, and promoters who sell illegal tax schemes.
• Global trade and commerce. This targets trade fraud and customs violations, such as disguising where goods come from, undervaluing imports to dodge duties, evading sanctions, and supply chains that rely on forced labor.
• Corporate misconduct. The division will hold companies accountable for fraud, while giving credit to businesses that voluntarily come forward, cooperate, and fix the problem.
How They Plan to Do It
The Fraud Division is leaning heavily on technology, data analytics, and financial forensics to spot fraud earlier and build cases faster. It is also coordinating across the government — working with other DOJ components, federal law enforcement, executive agencies, and state and local partners, and sharing data that used to sit in separate silos. The memo describes this as a coordinated, government-wide effort to fight fraud.
A recurring theme is protecting people who are most at risk — children, the elderly, and the sick or disabled — along with safeguarding public confidence and the broader economy.
Why Experienced Counsel Matters — and Why Timing Is Everything
A better-funded, data-driven enforcement division changes the calculus for every business and individual who might come under scrutiny. Investigations are likely to move faster, rely on sophisticated analytics, and reach cases that might once have flown under the radar. In that environment, the single most important decision a person or company can make is to involve experienced counsel — and to do it early.
Get counsel involved before charges are ever filed. By the time a target learns of an investigation, the government has often been building its case for months. The period before charges are brought is frequently where cases are won or lost. Skilled counsel engaged early can:
• Respond strategically to subpoenas, civil investigative demands, and agent interviews — protecting privilege and avoiding missteps that hand the government evidence.
• Conduct an internal investigation to understand the facts before the government does, so decisions are based on reality rather than fear.
• Open a dialogue with prosecutors, present exculpatory facts, and, where appropriate, advocate for declination — persuading the government not to bring charges at all.
• For businesses, evaluate whether voluntary self-disclosure, cooperation, and remediation make sense. The division has expressly said it will reward companies that come forward, cooperate, and fix problems — but capturing that credit requires careful, well-advised judgment about what to disclose, when, and how.
If charges are brought, mount an aggressive defense. Facing a division built specifically to prosecute fraud — with dedicated data scientists, forensic accountants,
asset-recovery attorneys, and appellate specialists — no one should stand alone. Experienced white-collar defense counsel can test the government’s evidence, challenge the theories underlying the charges, protect assets targeted for forfeiture, negotiate from a position of strength, and, where necessary, try the case. The government is organizing to be fast and coordinated; an effective defense has to be equally prepared and equally determined.
The common thread is time. Early, informed decisions preserve options; delay forecloses them. Anyone who suspects they may be a subject or target of a fraud investigation — or who simply wants to reduce that risk before it materializes — is far better served bringing seasoned counsel to the table sooner rather than later.
What This Means for You
For businesses and individuals alike, the takeaway is that federal fraud enforcement is expanding, becoming more data-driven, and moving faster than before. Companies in health care, government contracting, importing and trade, and any business handling federal funds should expect heightened scrutiny — and should make sure their compliance programs are current and effective. Proactive steps now — strong compliance, prompt legal review of red flags, and a relationship with counsel already in place — are far less costly than a reactive scramble after the government comes knocking.
If you have questions about how these enforcement priorities may affect you or your business, about responding to a government inquiry, or about strengthening your compliance and fraud-prevention practices, our team is here to help.
This article is provided for general informational purposes and does not constitute legal advice.