Like FBI on terrorism after 9-11, Trump is pressing feds to stop fraudulent payments beforehand

 The U. S. Treasury Department has introduced new measures to prevent fraud in federal payments, following President Trump's executive order. This system is designed to stop payments from going to deceased individuals and to create a more proactive approach against improper payments.

● The new initiative has already blocked nearly $100 million in payments to about 4,900 deceased individuals, based on data screening involving over 885 million transactions amounting to $2.77 trillion.

● This approach is based on a "Do Not Pay" system, which aims to prevent unauthorized payments before they are issued, rather than attempting to recover funds after they have been sent.

● Previously, many payment programs like Social Security and Medicare would automatically send funds, leading to issues where payments were made to the deceased due to bureaucratic lag or fraud.

● The initiative reflects lessons learned from 9/11, where a focus on prevention was deemed essential in preventing future threats. The Treasury Department aims to apply this prevention-first mindset to fiscal fraud as well.

● The Treasury Secretary emphasized the integration of real-time data to enhance the effectiveness of the system in stopping improper payments before they occur, with projections of saving hundreds of millions annually.

● The IRS has also adopted a prevention-first strategy, highlighted by CEO Frank Bisignano, who has a strong commitment to cybersecurity and protecting sensitive information.

● The Department of Health and Human Services (HHS) similarly announced deferrals of over $1 billion in Medicaid payments to California and Minnesota, prompting states to verify high-risk claims' legitimacy.

The Treasury Department's latest fraud prevention measures signify a significant shift towards a proactive stance on financial integrity, aiming to stop improper payments before they happen. This approach not only seeks to safeguard taxpayer money but also emphasizes the importance of immediate action against potential fraud, reflecting larger governmental reforms inspired by past failures. 

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