Elon Musk says hundreds or even thousands of fraud rings involving people of different nationalities are stealing money from US taxpayers, as authorities continue investigating organised benefit fraud and EBT theft.
Tesla and SpaceX CEO Elon Musk has claimed that the United States is dealing with a large number of organised fraud networks stealing taxpayer-funded money.
Musk made the statement on X on September 21, 2026, while responding to a Wall Street Journal report about Romanian criminal networks allegedly exploiting weaknesses in the US food-assistance system.
“There hundreds, maybe thousands, of fraud rings of almost every nationality stealing money from US taxpayers.”
Musk did not provide evidence for his estimate of “hundreds, maybe thousands” of fraud rings. Federal authorities and the Government Accountability Office have documented numerous organised fraud schemes, but there is no publicly established nationwide figure confirming Musk's estimate.
Musk's comments follow reports of SNAP fraud
The discussion centres partly on fraud involving the Supplemental Nutrition Assistance Program (SNAP), the US federal programme that provides food assistance to eligible low-income households.
SNAP benefits are generally distributed through Electronic Benefit Transfer (EBT) cards. Criminals have increasingly targeted those cards using methods including card skimming, cloning, phishing and other forms of identity or payment fraud.
The Government Accountability Office said states reported replacing more than $320 million in stolen SNAP benefits between October 2022 and December 2024 for nearly 679,000 households.
However, the GAO cautioned that the figure does not represent the full amount stolen. It covers claims that were reported and approved for replacement, while some victims may not have known how to report theft or may not have filed claims.
The watchdog also found that most SNAP EBT cards lacked security features such as embedded microchips, which are commonly used on commercial payment cards to make certain forms of skimming more difficult.
How EBT theft works
Authorities have identified several methods used by criminals to steal SNAP benefits.
One is card skimming, where criminals install devices over legitimate card readers to capture information from EBT cards.
The stolen information can then be transferred to counterfeit cards through a process known as cloning.
Criminals can also obtain account information through phishing attacks or exploit weaknesses in payment systems and online platforms.
Once the information is obtained, organised groups can rapidly drain victims' accounts before the theft is detected.
The GAO said organised crime groups can operate across geographic and legal jurisdictions, allowing them to target beneficiaries in multiple locations.
Federal cases show the scale of some schemes
Several recent US federal investigations illustrate the type of organised activity Musk was referring to.
In April, federal prosecutors in Ohio announced charges against five Romanian nationals accused of participating in a conspiracy that allegedly attempted to steal nearly $1 million in SNAP benefits in Ohio and California.
According to the indictment, the defendants allegedly used point-of-sale skimming devices to capture EBT card information and PINs. The information was then allegedly transferred to blank cards that were used to withdraw or spend stolen benefits.
Prosecutors estimated the alleged conspiracy involved approximately $961,000 in stolen or attempted-to-be-stolen benefits. The charges remain allegations unless and until established in court.
In another case announced in July, the Justice Department said two Romanian brothers pleaded guilty to their roles in a multistate SNAP fraud scheme involving more than $760,000.
Court records said the brothers allegedly used skimming devices at ATMs, fuel pumps and other locations to obtain EBT information, then used counterfeit cards to purchase goods that were subsequently transported and resold.
California has also targeted organised EBT theft
Federal prosecutors in California announced in March that more than 50 defendants had been charged in an ongoing crackdown on organised theft of public-assistance benefits.
Authorities said many of the cases involved individuals with ties to Romania and alleged that criminal crews targeted EBT accounts belonging to low-income families.
Investigators said some groups operated around the time benefits were deposited, allowing them to rapidly withdraw or spend stolen funds before victims realised their accounts had been compromised.
The cases demonstrate that organised EBT theft is a documented problem, although they do not establish Musk's broader claim that there are “hundreds, maybe thousands” of such rings.
Other nationalities and types of fraud are also involved
Musk's statement referred to fraud rings involving “almost every nationality.”
Available federal cases, however, cover a variety of schemes and individuals, and the evidence should not be interpreted as establishing that people of any particular nationality are generally involved in fraud.
For example, the Justice Department has prosecuted SNAP trafficking and fraud cases that do not involve Romanian nationals.
In July, federal prosecutors in Florida charged four men in an alleged scheme involving more than $19 million in SNAP funds. Authorities alleged that the defendants exchanged food-assistance benefits for cash through SNAP-authorised retail businesses in Miami-Dade and Broward counties.
The defendants were charged with participating in a scheme that prosecutors said operated from approximately 2019 through May 2026. The allegations remain subject to court proceedings.
The range of cases illustrates that benefit fraud can involve different methods, participants and criminal networks.
Fraud extends beyond SNAP
The broader issue raised by Musk is not limited to food assistance.
US authorities investigate fraud involving tax programmes, healthcare, government contracts, identity theft and other public funds.
The Justice Department created a National Fraud Enforcement Division in April 2026 to focus on investigating and prosecuting people accused of stealing or fraudulently misusing taxpayer money.
The federal government's broader fraud-enforcement effort has also focused on organised criminal networks and the misuse of government benefit programmes.
Musk's comments therefore come amid an existing federal push to identify and prosecute fraud, although his numerical estimate of the number of fraud rings has not been independently established.
Security weaknesses remain a concern
The GAO has highlighted weaknesses in the technology used to distribute SNAP benefits.
Its review found that most SNAP cards did not have embedded chips and that states were using different measures to protect recipients from theft.
The agency recommended that the US Department of Agriculture comprehensively assess the anti-theft measures being implemented by states and determine where additional improvements are needed.
The issue has become more significant as organised criminals have developed methods for obtaining EBT information remotely and physically.
For victims, the consequences can be immediate. A compromised account can be emptied before a recipient realises that their benefits have been stolen.
The problem is particularly significant because SNAP benefits are intended to help households purchase food, meaning theft can directly affect families relying on government assistance.
Musk's claim remains broader than available evidence
Musk's statement has drawn attention because of the scale of the figure he proposed.
There is clear evidence that organised fraud rings exist and that significant amounts of taxpayer-funded benefits have been stolen. Government investigations have uncovered schemes involving hundreds of thousands or millions of dollars, while the GAO has documented more than $320 million in reported SNAP benefit replacements during the period it examined.
But the available government data do not establish that there are hundreds or thousands of fraud rings involving “almost every nationality.”
The GAO specifically said the full extent of SNAP benefit theft is unknown, while its data cover only reported and approved replacement claims.
Musk's statement should therefore be understood as his estimate or assertion rather than an independently verified count.
As federal agencies continue investigating benefit fraud and other forms of taxpayer theft, authorities are also working to strengthen payment systems and prosecute organised networks responsible for the losses.
