A recent 60 Minutes segment uncovered how the U.S. government is losing nearly $1 trillion a year to fraud. This isn’t just about isolated bad actors, but coordinated, transnational crime rings exploiting systemic weaknesses in federal and state programs.
As government agencies continue to modernize, robust fraud prevention and identity protection are no longer optional, but are truly mission critical.
The New Face of Fraud
Fraud targeting the federal government has reached unprecedented levels, driven by sophisticated cybercriminal organizations that steal and monetize U.S. identities. These groups are often part of well-organized networks with ties to foreign governments. The FBI has even linked some operations to state-sponsored groups in China and Russia.
While vital for supporting Americans in crisis, pandemic-era programs, unintentionally opened the door for a digital crime spree. With pressure to distribute funds quickly, traditional safeguards were weakened or bypassed altogether. Former assistant director of forensic audits at the GAO, Linda Miller explained it was like “throwing money in the air and just letting people run around and grab it,” in the 60 minutes segment.
The Role of Foreign Adversaries
Foreign actors have taken note of these vulnerabilities. For example, China’s APT41 used stolen credentials to penetrate multiple state government systems and file fraudulent unemployment claims. According to the segment, these aren’t just cyberattacks, they’re acts of economic sabotage that cost American taxpayers billions.
Expanding the Scope of Fraud Prevention
The Department of Government Efficiency (DOGE) has made important progress addressing domestic fraud tied to citizen services. But with growing evidence of transnational crime rings targeting federal programs, there’s a strong case for expanding that focus.
By incorporating strategies to counter international threats and strengthening cross-agency collaboration, the government can better protect taxpayer dollars and national interests.
Where We Go from Here
This crisis demands more than patchwork fixes. It calls for a government-wide commitment to advanced fraud detection, digital identity management, and cybersecurity modernization.
At Makpar, we believe the federal government must:
- Prioritize real-time identity verification to prevent fraudulent access before it happens — supported by modern, enterprise-wide identity management that eliminates fragmented solutions.
- Deploy AI-driven fraud detection tools that can flag anomalies across large datasets, while ensuring legacy systems are modernized to support this level of intelligence.
- Strengthen interagency coordination to better share fraud intelligence, best practices, and unified identity standards across government.
- Build with security and trust at the center of digital service delivery, aligning with NIST 800-63 and Zero Trust best practices for secure access and data protection.
To stay ahead of these fraud challenges facing the U.S. government, agencies must rethink how digital trust is built and defended. Fraud prevention can no longer be seen as a compliance checkbox. It must be an integrated function of mission delivery.
At Makpar, we bring deep mission understanding and technical innovation to the fight against fraud. Learn more about how Makpar supports secure, modern digital government.
