January 1, Fraud Watchdogs Fail at Federal Agencies

Wyatt’s Take

• A third of federal agencies aren’t regularly watching for fraud.
• Billions in taxpayer money vanish to scams each year.
• The government knows the problems but struggles to fix them.

Federal fraud costs the U.S. between $233 billion and $521 billion each year, with numbers pulled from 2018 to 2022.

The Government Accountability Office released new guidance this month, hoping to push agencies to tighten up their defenses.

Many agencies still don’t use basic checks to keep fraud out. One 2023 survey found that about a third of 24 big federal agencies had no regular fraud monitoring or evaluation.

Half of these departments didn’t make any changes, even after looking at fraud data.

“Fraud prevention, including deterrence, decreases the need to chase after and recover stolen funds,” the watchdog explained.

The new report builds on an older framework, focusing now on how to judge and adapt fraud-fighting methods. The goal: protect the public dollar and keep trust with taxpayers.

It isn’t a new rulebook but offers tips like asking staff for input and adjusting evaluations to fit agency size.

Good evaluations have shown real results. Treasury’s own numbers say better controls stopped more than $4 billion in fraud and bogus payments in 2024 alone.

State, local, and nonprofit groups could adopt these same anti-fraud tools to safeguard their own programs.

Middle Americans deserve better from a government spending their money. When billions go missing, it hits home for folks working hard and paying their share. We need agencies that protect each dollar, not just talk about trying.

Read the full report

Wyatt Matters

Watching how Washington handles fraud tells us a lot about respect for the folks footing the bill. Every wasted dollar should anger the people who work for it. It’s time to demand real accountability and protection for honest Americans.