Fraud on the SNAP program to MassHealth to other public benefits has run rampant across Massachusetts, and hardly any of it is getting recovered, according to an analyst.
An expert says the state is recovering the funds at a rate of just 2.7%, good enough for just $2.69 for every $100 stolen.
This comes after a state audit flagged over $10 million in public benefits fraud in just a six-month span.
“Massachusetts is no different than any state in the country, except that they’re still in denial about the scale and scope of the problem,” Haywood Talcove, the CEO of data analytics company LexisNexis’ Risk Solutions Government Group, also a government fraud expert, told the Herald.
“They have less than 10 frontline investigators in the state, so their ability to detect fraud is as limited as their technology to find it. And if I was a taxpayer in Massachusetts, I would really want more controls in place. They are significantly undercounting the fraud and they don’t even have the mechanism to recoup the dollars that have been stolen,” he said.
State Auditor Diana DiZoglio’s office released a report last month detailing $10.6 million in public benefits fraud uncovered by the office’s Bureau of Special Investigations (BSI) in the third and fourth quarters of Fiscal Year 2026, running from January 1 through June 30.
The BSI detected public benefits fraud tied to 402 of 2,223 total cases in that timeframe, the vast majority of which coming from the state’s SNAP and Medicaid programs, with MassHealh accounting for 57% of the total at $6,051,185 in stolen funds, and SNAP making up 36.3% of the fraud in that time for $3,854,119.
Notably, the auditor highlights two Massachusetts dental providers billed for several days of service on days their offices were closed, what the auditor’s office calls “impossible days” in its report.
That’s up significantly from the $4.4 million uncovered by the auditor in the first two quarters of FY26.
Meanwhile, the state has only finalized $285,339 in recoveries from that $10.6 million total, equating to a rate of just 2.7% and good enough for just $2.69 for every $100 stolen through fraud.
But the Healey administration says the vast majority of cases — 95%, according to their own accounting — in the Auditor’s report were referred by state agencies.
“Our goal is to make sure Massachusetts residents who need assistance can access the benefits they qualify for, while protecting these critical programs from fraud and abuse,” spokeswoman for the Executive Office of Health and Human Services (EOHHS) Olivia James told the Herald.
“The figures in the Auditor’s report do not capture the full scope of the state’s efforts to recover funds and protect taxpayer dollars,” she said.
Talcove says 97 cents of every stolen dollar remains in the hands of criminals, with international crime rings making up the majority of that element. He says by the time the check clears, it’s too late.
“By then, the money may have been converted to cash, moved across accounts or sent out of the country,” Talcove explained.
Talcove says Massachusetts needs to take public benefits fraud more seriously by updating its “dated” and “antiquated” processes and technology that allows for rates as high as 15% in the benefits programs.
Talcove says the state needs to hire more special investigators, enhance and prioritize identity verification, allow third-party audits, implement front-end eligibility determination, and, most importantly, stop accepting self-reported information.
“Criminals lie and they get away with it,” he said.
Talcove says that all states, including Massachusetts, must share personal information about SNAP benefits recipients with the federal government to allow for serious efforts at rooting out fraud.
That’s a bridge Gov. Maura Healey has not been willing to divulge, as she says the Trump administration has given her no assurances that the data will not be passed on to Immigration and Customs Enforcement (ICE).
“At LexisNexis, we see the same 10 identities being used in all 50 states. The states don’t see it because they’re operating in silos when it comes to sharing data. But it’s the most effective tool to stop fraud and improper payments,” argued Talcove.
While fraud recovery remains limited in Massachusetts, Talcove adds another problem waiting right around the corner for the Bay State is the $400 million in penalties it will owe the federal government as part of new legislation requiring states with SNAP payment error rates above 6% to be financially liable.
Massachusetts finished FY25 with a high payment error rate of 12.5%, according to the USDA, equating to $325 million in erred SNAP payments.
That’s down slightly from the 14% payment error rate seen in FY24, which was good enough $364 million in erred payments that year.
A Massachusetts DTA whistleblower earlier this year told the Herald of “rampant” fraud within the state’s SNAP-EBT program dating back to a uptick in 2021 that coincided with a surge in illegal immigration.
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