Fraud prevention, not fraud detection

Healthcare fraud is a $100B problem. The fix starts at enrollment.

Bad actors enroll as Medicare providers with fake credentials and stolen identities. They bill millions before anyone notices. Fraudless flags them at enrollment — before a single fraudulent claim is paid.

The problem

The system catches fraud after the money is gone

Medicare and Medicaid pay out over $1 trillion in claims every year. More than $100 billion of that goes to fraud — fake clinics, phantom providers, billing schemes run by organized rings. That's $270 million a day walking out the door.

The entire system is reactive. A provider enrolls, submits claims, gets paid. Months or years later, an auditor flags suspicious patterns. By then the provider has closed shop, the money is offshore, and recovery is pennies on the dollar.

We don't have a fraud detection problem. We have a fraud prevention problem.

$100B+

Stolen from Medicare and Medicaid annually (CMS/OIG estimates)

$270M

In fraudulent claims paid every single day

Reactive

The current playbook: pay first, detect later, recover almost nothing

The thesis

Stop fraud at enrollment. Everything downstream gets simpler.

How it works today

Detect & Recover

  1. 01Provider enrolls with fake credentials
  2. 02Bills Medicare for months or years unchecked
  3. 03Audit flags suspicious billing — eventually
  4. 04Investigation. Litigation. Pennies recovered.

How Fraudless works

Prevent at the gate

  1. 01Provider submits enrollment application
  2. 02Fraudless analyzes credentials, entity networks, behavioral signals
  3. 03Fraud rings, phantom providers, and stolen identities flagged
  4. 04Bad actors denied before billing a single dollar

Every dollar of fraud prevented is a dollar that never needs to be investigated, litigated, or recovered. Prevention isn't just cheaper than detection — it's a different order of magnitude.

The product

Screen every enrollment application. Flag what matters.

Cross-reference PECOS enrollment data, NPI registries, and entity ownership networks. Surface the shell companies, revoked credentials, and phantom providers that slip past manual review.

PECOS Enrollment Screening — Provider Applications
5 applications · 2 flagged · 1 in review
ProviderRiskStatus

Apex Medical Group LLC

Group Practice · FL · Jan 14, 2024

94flagged

Dr. Maria Santos, MD

Individual · TX · Jan 14, 2024

12approved

Pacific Home Health Services

Home Health · CA · Jan 13, 2024

78review

Sunshine DME Supplies Inc

DME Supplier · FL · Jan 13, 2024

87flagged

Dr. James Whitfield, DO

Individual · NY · Jan 12, 2024

8approved
Fraud Alert94

Apex Medical Group LLC

NPI 1548293716 · Group Practice · FL

Enrolled Jan 14, 2024 · Application ENR-2024-4892

Risk Signals

Shell company pattern
Linked to revoked NPI

Confidence

94%

3 of 3 risk models flagged this application

Entity Network

Apex Holdings CorpParent Entity
Gulf Coast Billing SvcsRevoked
Southeast DME NetworkRevoked
Daniel R. MorrisonManaging Member

The team

We've built fraud detection for the federal government. Now we're building it right.

We built enrollment fraud screening inside the federal healthcare system — the tools that analyze provider applications for the largest healthcare payer in the country.

We know the data, the procurement process, who signs the contracts, and exactly where the current systems break down. That's not research — it's operating experience.

Most teams in this space will spend years learning the domain. We've been operating in it.

The market

Every payer in healthcare has a front door. None of them are locked.

Provider enrollment is how every bad actor enters the system. CMS is where we start — state Medicaid agencies and commercial payers are where we go next.

CMS

Medicare & Medicaid — $1T+ in annual claims, the biggest target

50 States

Every state Medicaid agency runs its own provider enrollment

Commercial

UnitedHealth, Elevance, Cigna — same fraud vectors, same exposure

Oversight

OIG, DOJ Healthcare Fraud Unit, state investigative agencies

The front door to healthcare is wide open. We're closing it.

If you work in healthcare fraud, enrollment integrity, or payer operations — we should talk.

[email protected]