A system, method and program product for countering fraud using artificial intelligence. A system is disclosed that includes: a system for formalizing real world semantic information pertaining to a domain that includes rules and processes expressed as formulae, semantic models of known fraud schemes, and knowledge bases of domain participants represented using cognitive calculi; and a scheme generation system for generating a plurality of fraud schemes within the domain using the semantic information, wherein each fraud scheme: comprises a plan expressed using cognitive calculi; includes at least one domain participant; achieves an illicit result that breaks at least one rule of the domain; is provable to be outside the purview of relevant observers; and is not a known fraud scheme.