The US government is losing a ton of money to fraud, according to a new report. The Government Accountability Office (GAO) says the feds are losing somewhere between $233 billion and $521 billion each year.
How Did They Figure That Out?
The GAO looked at data from 2018 to 2022 and used a fancy statistical method called a Monte Carlo simulation to estimate the losses. They say this fraud represents about 3% to 7% of all the money the government spends.
Where’s the Money Going?
The GAO doesn’t say how to stop the fraud, but they do suggest the government needs to get better at tracking and managing it. They say the government should collect more data, use consistent definitions for fraud, and focus on areas where fraud is more likely to happen.
A Big Problem for Taxpayers
This is a big deal for taxpayers. If the government is losing hundreds of billions of dollars every year, that’s money that could be used for things like education, healthcare, or infrastructure.
It’s clear the government needs to take this problem seriously and find ways to protect taxpayer money from fraud.
