This case summary describes an example of ECHO’s fraud prevention technology and services in action. Automated alerts quickly identified suspicious virtual card processing intended for claims payments on behalf of ECHO’s dental plan partners. Further investigation revealed a suspected $250K in diverted claims payments and other theft that eventually led to an arrest in connection with ten counts of federal wire fraud. The accused pleaded guilty1. At the time of this summary, her sentencing was pending.
A Texas-based dental practice began to accept virtual cards in 2018 to benefit from faster, secure, and assured payments, along with enhanced electronic remittance information. In 2020, suspicious changes in card processing triggered ECHO’s protocols for investigation.
An ECHO fraud analyst spoke with the new office manager who tried to assure ECHO the changes in card processing were legitimate. With the findings from in-depth card reviews and spending history, the ECHO fraud team was required to speak directly with the dentist (and practice owner). The office manager intercepted outreach and made reaching the dentist difficult.
With persistence, the ECHO fraud team finally reached him. At that time, it appeared the office manager had redirected 19 card transactions totaling $13,000 in claims payments processed through ECHO. The dentist later confirmed redirected claims payments paid by other plans (not working with ECHO) had gone undetected until ECHO alerted him of suspicious card activity.