Elon Musk says US govt transaction systems ‘ inefficient’, alleges’ possible$ 100 billion fraud yearly’

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Elon Musk says US govt payment systems ‘inefficient’, alleges ‘potential $100 billion fraud annually’ | Today News

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Elon Musk says US govt payment systems ‘inefficient’, alleges ‘potential $100 billion fraud annually’

Billionaire Elon Musk has raised concerns about inefficiencies in the US government’s payment systems, estimating over $100 billion in potential fraud annually. 

Updated9 Feb 2025, 01:14 PM IST
Billionaire Elon Musk has raised concerns about inefficiencies in the US government's payment systems, estimating over $100 billion in potential fraud annually.
Billionaire Elon Musk has raised concerns about inefficiencies in the US government’s payment systems, estimating over $100 billion in potential fraud annually. (AP Photo / Matt Rourke)

The world’s richest person, took to his social media platform X (formerly known as Twitter), to allege that the United States government payments system’s inefficiency is potentially leading to “over $100 billion fraud annually”.

Musk, who is the CEO of Tesla and SpaceX, and part of US President ‘s administration as chief of the Department of Government Efficiency, dubbed “DOGE” made the post early on February 9.

He said DOGE and the US Treasury Department would work to address the issue.

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Elon Musk Alleges Potential ‘Fraud’ Exceeding $100 billion Annually

In the long word post, Elon Musk claimed that he was informed “that there are currently over $100B/year of entitlements to individuals with no SSN or even a temporary ID number”, calling it “extremely suspicious”.

He added, “When I asked if anyone at Treasury had a rough guess for what percentage of that number is unequivocal and obvious fraud, the consensus in the room was about half, so $50B/year or $1B/week!! This is utterly insane and must be addressed immediately.”

In another post he added: “The magnitude of the in government payments (your tax dollars being spent) is MUCH higher than you think!”

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What is Elon Musk Proposing?

In the post, Elon Musk said that the team and US Treasury have jointly agreed to do the following:

  • Require that all outgoing government payments have a payment categorisation code. He added that this code is necessary in order to pass financial audits and is frequently left blank, making the process almost impossible.
  • That all payments must include a rationale for the payment in the comment field, which is currently left blank. “Importantly, we are not yet applying ANY to this rationale, but simply requiring that SOME attempt be made to explain the payment more than NOTHING!” said Musk.
  • He also suggested the introduction of a DO-NOT-PAY list of entities, which will comprised of “fraudulent or people who are dead or are probable fronts for terrorist organizations or do not match Congressional appropriations”.
  • “It can currently take up to a year to get on this list, which is far too long. This list should be updated at least weekly, if not daily,” he added.

“The above super obvious and necessary changes are being implemented by existing, long-time career government , not anyone from DOGE. It is ridiculous that these changes didn’t exist already!” Elon Musk added.

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Elon Musk says US govt payment systems ‘inefficient’, alleges ‘potential $100 billion fraud annually’

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First Published:9 Feb 2025, 12:40 PM IST

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estimating over $100 billion in potential fraud annually.u0026nbsp;”,”handpicked”:false,”audienceTags”:”sf03_f,fmrk”,”autoBackLinked”:false,”aiContent”:false,”aiContentType”:null,”removeAds”:false,”contextualKeyword”:”anchor investors,market cap,us stocks,rbl bank,reliance,savings,equity,interest rates,debt,loans,ipos,portfolio,rates,personal loan,key market triggers,goldman,stock,assets,indian equities,dividend stock,nse,whatsapp3,sectors,indian stocks,investors,markets,budget,stock split,sbi,personal loans,credit card,interest,stock recommendations,the indian stock market,penny stock,real estate,money,bank,investments,fd interest rates,adani stocks,rbi,market,dividend stocks,companies,analysts,bse,ipo,mutual funds,marketsmith india,top market movers,key risks investors,stock market today,the market,a personal loan,goldman sachs,banks,revenue,financials,climate finance,credit cards,retail investors,rupee,icici bank,hdfc bank,net profit,earnings,icici securities,indian stock market,Topic_lm_81,Emo_disgust,Hour_12,Day_Sunday”,”embedAmazonCount”:0,”embedCromaCount”:0,”embedFlipkartCount”:0,”embedSnapdealCount”:0,”tableOfContentsHeading”:[],”performanceArticleType”:null,”prContextualKeywords”:”plc1,PLKeywords”,”sectionId”:1544098065549,”subSectionId”:11725270407521,”typeOfFormat”:null,”crawledWidgetType”:null,”crawledWidgetData”:null},”isDeleted”:0,”expiryDate”:null,”listRelatedStories”:null,”type”:”story”,”relatedStories”:null,”listElement”:[{“id”:11739086190626,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eThe world’s richest person, u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/topic/elon-musk”u003eElon Musku003c/au003e took to his social media platform X (formerly known as Twitter), to allege that the United States government payments system’s inefficiency is potentially leading to “over $100 billion fraud annually”.u003c/pu003e”},”bgParaColor”:{“name”:null,”code”:null},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11739086190626,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eMusk, who is the CEO of Tesla and SpaceX, and part of US President u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/news/us-news/elon-musk-says-he-loves-donald-trump-as-much-as-us-president-replies-11739070668323.html”u003eDonald Trumpu003c/au003e’s administration as chief of the Department of Government Efficiency, dubbed “DOGE” made the post early on February 9.u003c/pu003e”},”bgParaColor”:{“name”:null,”code”:null},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11739086190626,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eHe said DOGE and the US Treasury Department would work to address the issue.u003c/pu003e”},”bgParaColor”:{“name”:null,”code”:null},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11739086914066,”articleType”:”element”,”name”:””,”title”:””,”type”:”alsoread”,”subType”:null,”paywallElement”:false,”alsoReadStories”:{“11739075603592″:”‘7.25 lakh Indians be dumped?’ Manish Tewari slams Jaishankar over deportations”},”alsoReadStoryIdList”:[11739075603592],”alsoReadStoriesUrl”:{“11739075603592″:”/news/india/us-deportations-would-7-25-lakh-indians-dumped-back-manish-tewari-criticises-eam-jaishankar-camps-handcuffs-human-rights-11739075603592.html”}},{“id”:11739086190120,”articleType”:”element”,”name”:””,”title”:””,”type”:”embed”,”subType”:””,”paywallElement”:false,”embed”:{“url”:null,”body”:”u003cblockquote class=”twitter-tweet”u003eu003cp lang=”en” dir=”ltr”u003eTo be clear, what the u003ca href=”https://twitter.com/DOGE?ref_src=twsrc%5Etfw”u003e@DOGEu003c/au003e team and u003ca href=”https://twitter.com/USTreasury?ref_src=twsrc%5Etfw”u003e@USTreasuryu003c/au003e have jointly agreed makes sense is the following:u003cbru003eu003cbru003e- Require that all outgoing government payments have a payment categorization code, which is necessary in order to pass financial audits. This is frequently left blank, making…u003c/pu003eu0026mdash; Elon Musk (@elonmusk) u003ca href=”https://twitter.com/elonmusk/status/1888314848477376744?ref_src=twsrc%5Etfw”u003eFebruary 8, 2025u003c/au003eu003c/blockquoteu003e u003cscript async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″u003eu003c/scriptu003e”,”option”:null,”title”:null,”backgroundColor”:null,”fontColor”:null,”labelEnabled”:false,”label”:{“text”:null,”backgroundColor”:null,”fontColor”:null},”body2″:null},”amazonAds”:[],”newAmazonAdsMeta”:null},{“id”:11739086779667,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003ch2u003eElon Musk Alleges Potential ‘Fraud’ Exceeding $100 billion Annuallyu003c/h2u003eu003cpu003eIn the long word post, Elon Musk claimed that he was informed “that there are currently over $100B/year of entitlements u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/news/us-news/donald-trumps-big-unsubstantiated-claim-billions-of-dollars-stolen-at-usaid-for-payments-to-fake-news-media-11738857359697.html”u003epaymentsu003c/au003e to individuals with no SSN or even a temporary ID number”, calling it “extremely suspicious”.u003c/pu003e”},”bgParaColor”:{“name”:null,”code”:null},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11739086779667,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eHe added, “When I asked if anyone at Treasury had a rough guess for what percentage of that number is unequivocal and obvious fraud, the consensus in the room was about half, so $50B/year or $1B/week!! This is utterly insane and must be addressed immediately.”u003c/pu003e”},”bgParaColor”:{“name”:null,”code”:null},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11739086779667,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003cpu003eIn another post he added: “The magnitude of the u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/industry/govt-to-fund-private-research-on-early-fraud-warning-use-of-ipo-funds-corporate-11738238991695.html”u003efraudu003c/au003e in government payments (your tax dollars being spent) is MUCH higher than you think!”u003c/pu003e”},”bgParaColor”:{“name”:null,”code”:null},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11739086969611,”articleType”:”element”,”name”:””,”title”:””,”type”:”alsoread”,”subType”:null,”paywallElement”:false,”alsoReadStories”:{“11739068112643″:”SEBI goes after finfluencer Asmita Patel — Who is she?”},”alsoReadStoryIdList”:[11739068112643],”alsoReadStoriesUrl”:{“11739068112643″:”/market/stock-market-news/sebi-goes-after-finfluencer-she-wolf-stock-market-options-queen-asmita-patel-who-is-she-show-cause-notice-six-entities-11739068112643.html”}},{“id”:11739086779246,”articleType”:”element”,”name”:””,”title”:””,”type”:”embed”,”subType”:””,”paywallElement”:false,”embed”:{“url”:null,”body”:”u003cblockquote class=”twitter-tweet”u003eu003cp lang=”en” dir=”ltr”u003eThe magnitude of the fraud in government payments (your tax dollars being spent) is MUCH higher than you think! u003ca href=”https://t.co/umnT8Zm4Mb”u003ehttps://t.co/umnT8Zm4Mbu003c/au003eu003c/pu003eu0026mdash; Elon Musk (@elonmusk) u003ca href=”https://twitter.com/elonmusk/status/1888321807306121623?ref_src=twsrc%5Etfw”u003eFebruary 8, 2025u003c/au003eu003c/blockquoteu003e u003cscript async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″u003eu003c/scriptu003e”,”option”:null,”title”:null,”backgroundColor”:null,”fontColor”:null,”labelEnabled”:false,”label”:{“text”:null,”backgroundColor”:null,”fontColor”:null},”body2″:null},”amazonAds”:[],”newAmazonAdsMeta”:null},{“id”:11739087051509,”articleType”:”element”,”name”:””,”title”:””,”type”:”alsoread”,”subType”:null,”paywallElement”:false,”alsoReadStories”:{“11739072955612″:”‘Worst financial decision ever’, how engineer turned down Perplexity for FTX”},”alsoReadStoryIdList”:[11739072955612],”alsoReadStoriesUrl”:{“11739072955612″:”/news/trends/worst-financial-decision-ever-engineer-turned-down-perplexity-ai-aravind-srinivas-ftx-alameda-research-sam-bankman-fried-11739072955612.html”}},{“id”:11739084467750,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003ch2u003eWhat is Elon Musk Proposing?u003c/h2u003eu003cpu003eIn the post, Elon Musk said that the u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/news/us-news/elon-musk-s-doge-blocked-by-federal-judge-from-accessing-treasury-records-over-privacy-security-concerns-11739007786053.html”u003eDOGEu003c/au003e team and US Treasury have jointly agreed to do the following:u003c/pu003e”},”bgParaColor”:{“name”:null,”code”:null},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false},{“id”:11739084467750,”articleType”:”element”,”name”:”paragraph”,”title”:””,”type”:”paragraph”,”subType”:null,”paywallElement”:false,”paragraph”:{“body”:”u003culu003eu003cliu003eRequire that all outgoing government payments have a payment categorisation code. He added that this code is necessary in order to pass financial audits and is frequently left blank, making the process almost impossible.u003c/liu003eu003cliu003eThat all payments must include a rationale for the payment in the comment field, which is currently left blank. “Importantly, we are not yet applying ANY u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/opinion/online-views/ai-still-can-t-replace-human-instinct-when-it-comes-to-judgement-calls-artificial-intelligence-judgement-decisionmaking-11735298633644.html”u003ejudgmentu003c/au003e to this rationale, but simply requiring that SOME attempt be made to explain the payment more than NOTHING!” said Musk.u003c/liu003eu003cliu003eHe also suggested the introduction of a DO-NOT-PAY list of entities, which will comprised of “fraudulent or people who are dead or are probable fronts for terrorist organizations or do not match Congressional appropriations”.u003c/liu003eu003cliu003e“It can currently take up to a year to get on this list, which is far too long. This list should be updated at least weekly, if not daily,” he added.u003c/liu003eu003c/ulu003eu003cpu003e“The above super obvious and necessary changes are being implemented by existing, long-time career government u003ca class=”manualbacklink” target=”_blank” href=”https://www.livemint.com/companies/news/meta-job-internal-memo-layoffs-february-10-some-european-employees-exempt-hire-machine-learning-engineers-expedited-news-11738990620313.html”u003eemployeesu003c/au003e, not anyone from DOGE. It is ridiculous that these changes didn’t exist already!” Elon Musk added.u003c/pu003e”},”bgParaColor”:{“name”:null,”code”:null},”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false}],”amazonAds”:null,”flipkartAds”:null,”cromaAds”:null,”containAffiliateEmbed”:false,”affiliateEmbedHeadline”:false,”headline”:”Elon Musk says US govt payment systems ‘inefficient’, alleges ‘potential $100 billion fraud annually’”,”summary”:”Billionaire Elon Musk has raised concerns about inefficiencies in the US government’s payment systems, estimating over $100 billion in potential fraud annually.u0026nbsp;”,”quickReadSummary”:null,”mobileHeadline”:”Elon Musk alleges US govt payment systems have ‘potential $100bn fraud annually’”,”leadMedia”:{“id”:null,”mediaType”:null,”elements”:[11739085249405],”image”:{“images”:{“270×480″:null,”600×338″:”https://haveibeenhackedcheck.com/wp-content/uploads/2025/02/Elon_Musk_US_govt_payment_systems_100_bn_fraud_1739085237935_1739085239089-1.jpg”,”optimize”:”https://www.livemint.com/lm-img/img/2025/02/09/optimize/Elon_Musk_US_govt_payment_systems_100_bn_fraud_1739085237935_1739085249108.jpg”,”mediumImage”:”https://www.livemint.com/lm-img/img/2025/02/09/250×250/Elon_Musk_US_govt_payment_systems_100_bn_fraud_1739085237935_1739085239089.jpg”,”bigImage”:”https://haveibeenhackedcheck.com/wp-content/uploads/2025/02/Elon_Musk_US_govt_payment_systems_100_bn_fraud_1739085237935_1739085239089-1.jpg”,”140×140″:”https://www.livemint.com/lm-img/img/2025/02/09/140×140/Elon_Musk_US_govt_payment_systems_100_bn_fraud_1739085237935_1739085239089.jpg”,”thumbnailImage”:”https://www.livemint.com/lm-img/img/2025/02/09/90×90/Elon_Musk_US_govt_payment_systems_100_bn_fraud_1739085237935_1739085239089.jpg”,”900×1600″:”https://www.livemint.com/lm-img/img/2025/02/09/original/Elon_Musk_US_govt_payment_systems_100_bn_fraud_1739085237935.jpg”,”fullImage”:”https://www.livemint.com/lm-img/img/2025/02/09/960×540/Elon_Musk_US_govt_payment_systems_100_bn_fraud_1739085237935_1739085239089.jpg”,”248×186″:null},”caption”:”Billionaire Elon Musk has raised concerns about inefficiencies in the US government’s payment systems, estimating over $100 billion in potential fraud annually. “,”name”:””,”alternateText”:null,”imageCredit”:”AP Photo / Matt Rourke”,”overImage”:false,”verticalImage”:false,”width”:4323,”height”:2882,”imageUrl”:””},”video”:null},”timeToRead”:2,”introBody”:””,”related”:[],”showRelated”:false,”paywallElement”:false,”twoLinerText”:”Catch all the u003ca href=”https://www.livemint.com/”u003eBusiness News u003c/au003e, u003ca href=”https://www.livemint.com/news”u003eBreaking News u003c/au003eEvents and u003ca href=”https://www.livemint.com/latest-news”u003eLatest News u003c/au003e Updates on Live Mint. 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We will use it to make your experience better”:”आपकी व्यक्तिगत जानकारी हमारे पास सुरक्षित है। आपके अनुभव को बेहतर बनाने के लिए हम इसका इस्तेमाल करेंगे।”,”Full Name”:”पूरा नाम”,”Please enter your Full Name”:”कृपया, अपना पूरा नाम डालें”,”Please enter a full name”:”कृपया, अपना पूरा नाम डालें”,”Next”:”अगला”,”Email Address (as per bank records)”:”ईमेल एड्रेस ( जैसा कि आपके बैंक रिकॉर्ड्स में है)”,”Please enter your Email Address”:”कृपया, अपना ईमेल एड्रेस डालें”,”Please enter a valid email address”:”कृपया, अपना सही ईमेल एड्रेस डालें”,”Wishfin sent a 6 digit OTP on”:”विशफिन ने 6 अंक का ओटीपी भेजा है”,”Your OTP is valid for 10 mins”:”ओटीपी 10 मिनट के लिए वैध है”,”Resend OTP”:”ओटीपी फिर से भेजें”,”To provide you personalized offers we need some more details”:”आपको पर्सनलाइज्ड ऑफर्स देने के लिए हमें कुछ और डीटेल्स की जरूरत है”,”Select your Employment Type”:”अपने रोजगार का प्रकार चुनें”,”Salaried”:”नौकरीपेशा”,”Self-Employed Business”:”अपना बिज़नेस”,”Please enter your Monthly Salary”:”कृपया, अपनी 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