Government Benefits & Welfare Fraud

Medicaid Fraud Billing

Medicaid fraud billing occurs when providers submit false claims for services not rendered, upcode procedures, or bill for unnecessary treatments, defrauding the government-funded health program for low-income individuals. In 2025, a national takedown by the Department of Justice charged 324 defendants in schemes totaling over $14.6 billion in alleged fraud. In Ohio, nine providers faced charges for over $45,000 in fraudulent billing, including theft from the program. Minnesota saw new charges in an ongoing "industrial-scale" Medicaid fraud investigation, expanding on prior indictments. Recoveries topped $1.4 billion in fiscal year 2024 through Medicaid Fraud Control Units, emphasizing the scale of the issue.

Food Stamps/SNAP Fraud

Stamps/SNAP (Supplemental Nutrition Assistance Program) fraud involves the illegal use or trafficking of benefits intended for low-income families to access food. This can include selling benefits for cash, using stolen EBT cards, or misrepresenting eligibility to receive undue aid. In 2025, SNAP fraud reached alarming levels, with the USDA estimating theft could be as high as $12 billion annually, primarily through card skimming where criminals install devices on payment terminals to steal card information. A notable case in Georgia saw a drastic increase in reported fraud, with the Department of Human Services noting $4.4 million in losses for 2024 alone. In Houston, a mother reported her EBT benefits being stolen twice, totaling nearly $800, despite precautions, highlighting the vulnerability of the system. To combat this, states like Virginia reported over $5 million in SNAP thefts since late 2024, prompting calls for enhanced security measures such as chip-enabled cards.

Illustration of food stamp fraud showing EBT card, cash exchange, groceries, and sign indicating food stamps accepted.

Medicaid fraud concept with billing statement showing unnecessary tests, phantom patients, overpriced services, and Medicaid card

Housing Assistance Fraud

Housing assistance fraud entails misusing subsidies like Section 8 vouchers through false applications, undeclared income, or unauthorized subletting. In 2025, eight defendants in Minnesota were charged in a massive housing stabilization fraud scheme involving wire fraud. The U.S. Department of Housing and Urban Development (HUD) condemned $5.8 billion in questionable payments, labeling it "systemic fraud" in rental assistance programs. In California, real estate executives faced charges for defrauding homeless funding, using over $50 million improperly.

Daycare Subsidy Fraud

Daycare subsidy fraud involves providers or parents falsifying enrollment, attendance, or eligibility to claim government funds for child care. In early 2026, the U.S. Department of Health and Human Services froze $10 billion in grants to five states, including Minnesota, amid allegations of billions in fraud. Washington State audited subsidies after reports of empty centers receiving hundreds of thousands in funds. Texas Governor Greg Abbott directed investigations into potential systemic fraud in subsidized childcare systems.

Social Security and disability fraud concept with benefit cards, fake documents, voided checks, and fraud warning

Social Security & Disability Fraud

Social Security and Disability fraud includes concealing work while claiming benefits or using false identities to collect payments. In 2025, a Utah man was sentenced to prison for fraudulently collecting over $500,000 in disability benefits. The SSA reported 332,927 fraud allegations in FY2024, with half involving false personation or SSN misuse. A Schenectady woman was indicted for Social Security fraud in 2024.

Unemployment Benefits Fraud

Unemployment benefits fraud involves claiming benefits while employed or using stolen identities during pandemics. In 2025, 24 Los Angeles County employees were accused of stealing $741,518 in benefits from 2020-2023. Three individuals were sentenced for a $30 million COVID-19 fraud scheme in Georgia. New Jersey charged 20 cases involving over $1.1 million in stolen benefits.