DOJ Unveils National Fraud Enforcement Division to Battle Rising Fraud
The DOJ announced a new division dedicated to aggressively combating a national fraud epidemic.
Why it matters: This new division signals heightened legal scrutiny on fraud, affecting corporate compliance and white collar defense strategies amid evolving enforcement tactics.
- President Trump established the National Fraud Enforcement Division (NFED) on January 8, 2026.
- Assistant Attorney General Colin M. McDonald leads NFED, issuing Directive 26-13 to pursue aggressive fraud prosecutions.
- NFED priorities include healthcare, government, tax, and trade fraud, using data-driven and interagency methods.
- The National Fraud Detection Center launched in August 2026 coordinates federal, state, and inspector general efforts to spot taxpayer-funded fraud.
On January 8, 2026, President Donald J. Trump announced the creation of the Department of Justice's National Fraud Enforcement Division (NFED) to address what officials describe as a nationwide 'fraud epidemic'. The NFED focuses on fraud schemes targeting federal programs, federally funded benefits, businesses, nonprofits, and private citizens.
Assistant Attorney General Colin M. McDonald leads the division. In October 2026, he issued Directive 26-13, outlining an aggressive approach that includes pre-indictment asset seizures and infrastructure takedowns to immediately disrupt fraud schemes.
The NFED tackles healthcare fraud, government fraud, tax fraud, and trade fraud by leveraging data-driven investigative techniques and coordinating with federal agencies, Offices of Inspector General, and state partners. This is facilitated through the National Fraud Detection Center, launched in August 2026, which centralizes efforts from the FBI, other federal law enforcement agencies, and state entities to detect fraud in taxpayer-funded programs.
The division’s work is already impacting enforcement, including high-profile actions such as the $315 million settlement by CVS Pharmacy for unlawful opioid prescriptions and coordinated operations that arrested 28 individuals tied to scam networks in West Africa while rescuing 117 victims. Additionally, crackdowns on international cyberfraud scams have resulted in dismantling 40 laptop farms funneling over $3 million to North Korea.
NFED’s aggressive use of all available authorities—covering tax, securities, consumer fraud, and cybercrime—is designed to freeze assets and dismantle criminal infrastructure before formal indictments, signaling a shift toward proactive enforcement.
By the numbers:
- $315 million — settlement by CVS in DOJ opioid fraud case
- 28 arrests and 117 victims rescued — West African scam network takedown
- 40 laptop farms dismantled — North Korean cyberfraud scheme disrupted