IRS-CI Combines Advanced Analytics and Global Strategies to Combat Financial Crimes

WASHINGTON, December 9, 2024 – The Criminal Investigations ​Division of the Internal Tax Service (IRS-CI) published its annual report for fiscal year 2024, which ​shows its ​efforts to combat financial crime through ​advanced analysis, international collaboration and strong implementation measures. From interrupting billions of dollars in projects to improving ​global training programs, the division focused on innovation and partnerships to tackle complex criminal ​networks.

Ensuring regulations and expanding global partnerships

The IRS-CI implementation ​measures in ​fiscal year 2024 resulted in the confiscation ​of $1.2 billion in assets and approximately $96.4 million in revenues from illicit activities. As indicated ​in the report, these measures were complemented by the return ​of more than $1 billion to victims through asset recovery ​activities. Notable cases include the $30 million loss of Daniel Hurt, whose health ​care fraud involved medically unnecessary revenues ​and ​bribes. These efforts stress that the IRS-CI focuses on dismantling fraud networks ​and on justice for ​victims.

At the international level, IRS-CI’s participation in the joint leaders of the global budget implementation (J5) continues to produce significant results. Partnership J5, which includes tax administrations in Australia, Canada, the Netherlands, the United Kingdom and the United States, released its first annual report this year. The report highlighted the group’s ​success in disorganisation ​plans, such as $1.90 billion cryptomoneda fraud, which demonstrates the effectiveness of international cooperation in combating tax ​evasion and financial crimes.

Technological ​innovations ​strengthen ​research

In order to remain ​at ​the forefront of ​the ​evolution of financial crime, ​IRS-CI took advantage of advanced analysis and emerging ​technologies. The Advanced Analysis ​and Innovation (AAI) section uses ​machine learning ​and data analysis to discover trends in illicit activities, making it an essential ​component of the Agency’s activities. ​Through the identification ​of illicit funds and the identification of perpetrators, the AIA has ​improved the division’s ability to create stronger records ​and ​improve conviction rates.

The IRS-CI digital forensic team also played a key role in historical ​cases, including the search for Binance, the world’s largest exchange of cryptomonedas. This case, one of the most important in the history of the IRS-CI, involved the analysis of terabytes of data and resulted in a ​$4 billion deal for violations of ​US ​anti-money laundering laws. These cases highlight ​the growing importance of digital forensic medicine in the fight ​against cryptomonedas-related crimes and cyber fraud.

Global impact of field operations and training

The Division ​and international ​training programmes have strengthened global capacity for implementation. In ​2024, IRS-CI organized more ​than 30 ​training sessions for more than ​930 participants in 70 countries. These programmes aim to provide international partners with tools to ​effectively investigate and prosecute financial offences. ​New ​initiatives, ​such as the addition of e-attachments in Singapore and the ​Caribbean, ​reflect the ​IRS-CI’s commitment to broaden its global footprint and ​improve ​cross-border ​partnerships.

At the national level, IRS-CI operations have demonstrated excellence in investigating tax evasion and financial fraud. The ​National Research Coordination Unit (NCIU) provided 292 research references based on important data ​and strategic threat assessments. These efforts have led to high-impact processes, including the sentencing of those involved in tax evasion plans and money-laundering operations.

Combating new threats: cybercrime and fraud in health ​care

IRS-CI has increased its attention to cybercrime and health fraud, both of which pose significant threats to the financial system. Over the past year, the division has dismantled several large-scale projects, such as the operations of a Darknet vendor who washed $150 million in cryptomoneda and distributed ​controlled ​substances. The creation of two cybercrime units ​in Los Angeles and ​Washington, D.C. ensures that the agency is equipped to cope with the growing ​complexity of ​digital research.

Research on health care fraud has ​also ​made significant ​progress. For example, a Brooklyn man was ordered to participate in a health recovery plan that will waste $9.6 million, ​with illicit profits washed by ​shellfish companies and ​international transfers. These cases demonstrate ​the effectiveness of ​the IRS-CI in the search for criminal companies’ financial trains and the prosecution of perpetrators.

IRS-CI Vision for ​2025

In fiscal year 2025, Chief Guy Ficco stressed the importance of harnessing technology and ​increasing ​its workforce to meet new challenges. ​Under his leadership, ​the IRS-CI has recorded 11% growth in staffing, the highest in nearly a decade. This expansion is intended to improve ​the division’s ability to combat sophisticated financial crimes and protect the U.S. tax ​system.

“Our team remains committed to being at the forefront of innovation and collaboration,” said Mr. Ficco. “The achievements of fiscal year 2024 provided a solid basis for continued success in the fight ​against financial crime and the protection of taxpayers’ interests

The IRS-CI’s comprehensive approach, which incorporates advanced analysis, international ​alliances ​and ​strong implementation ​measures, places it as a global leader in financial crime investigations. Divisional efforts not only ​protect ​public confidence, but also prevent potential ​criminals from exploiting the vulnerabilities of the financial system.