Fraud is rampant in the healthcare industry due to its large size, scope, and complexity. Individuals and organizations have defrauded third-party payers, government agencies, and individuals by fraudulently billing for services not provided and keeping some of the money for themselves. This widespread fraud has stolen billions of taxpayer dollars and prevented some people from receiving needed care. However, federal, state, and local agencies have recovered over $2.5 billion annually through intensified anti-fraud investigations and prosecutions. Healthcare leaders must understand regulations against fraud and establish compliance processes to recognize and address potential fraud situations.