Since the 1970s, financial scams have bled American taxpayers dry, with recent revelations exposing decades-long government-enabled fraud. The Trump administration’s 2025 probes, led by the Department of Government Efficiency (DOGE), have unearthed shocking schemes, from misallocated federal funds to insider manipulations. These discoveries, costing billions, erode public trust and demand accountability. For context, historical frauds like Charles Ponzi’s 1920s scam set a grim precedent, but today’s findings reveal systemic rot within government programs. Sources like AP News and The Guardian confirm the scale of these betrayals, spotlighting DOGE’s aggressive investigations.

Financial Scams in Federal Programs

DOGE’s 2025 audits exposed massive financial scams in unemployment insurance, with $400 million in fraudulent claims tied to nonexistent or deceased claimants. For example, payments went to 25,000 “people” over 115 years old and 10,000 not yet born. This echoes earlier fraud, like the Treasury recovering $31 million in COVID-19 payments to dead recipients, as noted by Judicial Watch. Meanwhile, the 2020 Paycheck Protection Program (PPP) saw billions siphoned through fake businesses, burdening taxpayers. These schemes thrived under lax oversight, but DOGE’s scrutiny is forcing accountability.

Decades-Old Financial Scams Resurface

Older financial scams also linger. The 1970s HUD scandals, where officials inflated property values for kickbacks, cost taxpayers millions. Similarly, 1980s Savings and Loan frauds triggered a $160 billion bailout. DOGE’s 2025 reviews suggest these were never fully resolved, with echoes in modern grant misallocations. For instance, the 2011 Solyndra collapse, where $535 million in loans vanished, mirrors current findings of misdirected green energy funds. Its easy to find sources after sources where we can highlight how past oversights fuel today’s crises.

Modern Scams Evolve

Technology amplifies financial scams. The 2022 FTX collapse, a crypto fraud, wiped out $8 billion in customer funds, exposing regulatory gaps. Likewise, 2025 reports uncovered $470 million in text-based scams mimicking government programs, per PCMag. DOGE also flagged $1.1 billion in recovered unemployment fraud from 2020-2025, much of it tied to identity theft. These scams exploit digital systems, yet government delays in tech upgrades enabled them.

What’s the Next Scam We Haven’t Unraveled?

Ultimately, DOGE’s 2025 discoveries reveal financial scams festering for decades, from HUD to FTX. Transitioning to stricter oversight, the administration aims to save billions, but fraudsters adapt fast. Stronger laws, better tech, and public awareness are critical. However, history shows greed outpaces reform. As taxpayers demand justice, one question looms: Can we outsmart the next wave of financial scams?

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Follow Clara Dorrian @CRiordan2024