DOJ Fraud Investigations Ramp Up: What You Need to Know About Data Analytics and DOJ’s Latest Self-Disclosure Policy

The U.S. Department of Justice is increasing its use of data analytics to identify and pursue potential fraud involving taxpayer dollars. Recent enforcement initiatives signal that companies should also ensure their compliance programs are able to utilize such analytics in order to monitor and respond to potential instances of fraud effectively and quickly.

The National Fraud Enforcement Division

On April 7, 2026, Acting Attorney General Todd Blanche announced the creation of the National Fraud Enforcement Division, whose core mission is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. To fulfill this mission, each U.S. Attorney’s Office was required to designate an experienced prosecutor to be detailed to the Division, giving it an immediate influx of approximately 90 attorneys.

While the Department’s initiatives to combat taxpayer fraud are not new, a key method announced by the National Fraud Enforcement Division centers on the increased use of advanced data-driven investigative techniques.

The Expanding Role of Private Data Miners

It is not just agents and investigators who may be analyzing company data for suspicious activity. Individuals and businesses that analyze publicly available data for potential signs of fraud, often referred to as data miners, are also providing their findings to the Department. DOJ’s Civil Division recently reported that information supplied by data miners has contributed significantly to a surge in the number of qui tam whistleblower complaints.

As commentators have observed, companies that are not already using data analytics to detect potential fraud risk falling behind. DOJ’s recently enacted Corporate Enforcement Policy provides meaningful benefits to companies that voluntarily and timely disclose discovered misconduct, including the potential for a declination of prosecution. As a result, the ability to detect potential issues early gives companies valuable time to work with counsel to assess whether an internal investigation or self-disclosure is appropriate.

Increased Scrutiny for Government-Funded and Government-Facing Businesses

If your organization receives federal funding or bills government payors at the state or federal level, data analytics are likely being used by regulators, investigators, and data miners to identify perceived compliance gaps. Casting such a wide net through automated, low-cost, machine-driven processes inevitably captures compliant companies as well. Those companies may still be required to devote significant time and resources responding to government inquiries that are driven by data rather than a full understanding of how the business actually operates.

Woods Rogers’ Government and Special Investigations team has experience both leading and defending against data-driven and data-initiated investigations. We work with clients to help ensure compliance programs are positioned to incorporate appropriate data analytics on the front end to minimize enforcement risk, and we serve as trusted advisers if potential fraud is identified or if state or federal regulators initiate an inquiry.

If you have questions about how DOJ’s expanding use of data analytics may affect your organization, or want to learn more about the Department’s new corporate enforcement policy, contact the author of this alert or any member of the Woods Rogers Government and Special Investigations team.