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Heather Altamirano

Is DOGE Preventing Financial Fraud or Making It Easier?

Francis Chung / UPI

The Department of Government Efficiency (DOGE) was pitched to the American people as an organization that is supposed to eliminate excessive spending in the government while reducing fraud and saving taxpayers money. According to the DOGE website, it has saved an estimated $190 billion in total and $1,180 per taxpayer so far, though this exact figure is disputed by some economists.

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However, even before the exit of Elon Musk from the White House and corresponding friction with President Trump, many have had concerns that DOGE has overstepped by removing too many federal jobs, cutting essential programs in public health, education, DEI and more, while causing confusion across the country. DOGE remains controversial at best, especially now when many systems and assistance programs seem to be slipping through the cracks

Whistleblower Calls for Concern

From the beginning, there has been cause for worry, according to Daniel Berulis, a whistleblower who spoke to NPR. He went on record stating Musk and his team are demanding access to the National Labor Relations Board (NLBR) internal data — an independent federal agency that handles complaints about unfair labor practices.

While it’s nothing new that DOGE is trying to access sensitive information, Berulis revealed DOGE engineers were granted access and noticed a “spike” in information leaving the agency. The sensitive data could have included details on corporate secrets, ongoing legal battles and unions that don’t pertain to government efficiency and should almost never leave the NLRB, four labor law experts told NPR. It’s also worth noting that DOGE members were diligent in requesting their online activities not be logged and deleted records of their online presence manually.

At this time, it’s unknown what the information will be used for, but the labor law experts NPR spoke to fear the data could be abused by private companies that have ongoing cases with the agency, which could expose damaging testimony, legal strategies and sensitive details on competitors.

Tim Bearese, the NLRB’s acting press secretary, denied that DOGE had access to the system and said the agency investigated after Berulis’ concerns and “determined that no breach of agency systems occurred.” However, Berulis’ account is backed up by documentation that was reviewed by 11 technical experts.

“I can’t attest to what their end goal was or what they’re doing with the data,” Berulis told NPR, “but I can tell you that… this is a very bad picture we’re looking at.”

So, is DOGE making it easier to commit fraud, or is the organization really about eliminating waste and saving taxpayers money?

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No Transparency

While DOGE has a list of “receipts” on the website, there’s still a lot of uncertainty.

“As a business owner with years in finance and leadership, I’ve seen how innovation can either plug holes or blow them wide open,” said Danny Ray, founder of PinnacleQuote. “Elon Musk’s DOGE may have started with good intentions, but when transparency disappears, so does trust. Based on what we’ve learned, I don’t believe DOGE is preventing financial fraud. In fact, it may be making it easier.”

Ray said the deleting of access records and avoidance of monitoring tools is a red flag, “no matter who’s in charge.” He added, “Above all, accountability must be the foundation of any efficiency initiative. Trying to improve government operations shouldn’t come at the cost of security or oversight.”

Too Much Avoidance

An alarming issue to be wary of is the reported behavior of DOGE team members avoiding audits and possibly moving sensitive information, according to Ray.

“That smells less like efficiency and more like evasion,” he said. “For example, if private legal files or union data were accessed and removed without documentation, that’s not streamlining — it’s undermining.”

There Will Be Growing Pains

Things have certainly not been perfect with DOGE, but Peter Diamond, a federally licensed tax, accounting, real estate and structure and certified bankability expert takes a different viewpoint and believes it’s just growing pains.

“DOGE, at its core, is disrupting inefficiency — and change/disruption by nature will always makes people uncomfortable,” he explained. “But the truth is, it’s exposing fraud and waste that’s been swept under the rug for far too long.”

He said the end result will be positive, despite current temporary pain and delays. “Anytime you pull back the curtain on corruption, there’s going to be pushback.”

He added, “But that doesn’t mean you stop. You stay the course. I believe DOGE is a much-needed shake-up that, if executed right, will lead to cleaner, leaner systems with far less room for bad actors to hide. In the end, we should see savings for all of us as taxpayers.”

There Needs To Be More Balance

While many Americans are protesting the actions of DOGE, Diamond said the organization needs more time to do its job — but also needs balance.

Look — no system should be above scrutiny, especially not one built to scrutinize others,” he said. “DOGE is out here checking for fraud and inefficiency in other institutions, which is great — but who’s watching DOGE?”

He explained, “That’s the part that should give anyone pause. I’m not questioning the mission or the motive — but any unchecked authority, even with the best intentions, can become the very thing it set out to fix. We need balance, oversight and transparency at every level. That’s how you build trust that lasts and how we got here in the first place.”

The Whistleblower’s Account Is Concerning

The account of the whistleblower is eye-opening, and Diamond said if it’s proven accurate, “it’s a bit concerning.” However, he’s willing to overlook errors if DOGE is truthful about mistakes.

“But let’s not forget, every fast-growing organization is going to stumble at first,” he said. “Growth exposes cracks, and no one is perfect. It doesn’t mean the foundation is bad — it just means you’ve got to reinforce it as you go.”

He continued, “The question becomes: Are the people in charge willing to address those cracks or cover them up in terms of moving fast? If they’re willing to own it, fix it and keep moving forward, then this becomes part of the evolution — not the downfall. That’s what I’m watching for.”

DOGE Has Shown Efficiency

According to Diamond, there are positive aspects to DOGE, and it has been effective in certain areas

The most efficient part of DOGE is that it’s applying private-sector precision to a public-sector mess,” he explained. “You’ve got business-minded best of best operators identifying fraud and implementing real-time solutions.”

He said running the government like a private business is “long overdue” — removing red tape and focusing on clear objectives can be powerful. “The speed, the focus and the accountability are unlike anything we’ve seen in this space before.”

DOGE Had Potential

The idea of the government cutting spending and reducing fraud is one many can get behind, so DOGE started off with potential, Ray said. However, some of its actions are questionable.

“Streamlining outdated systems and trimming wasteful spending is something every taxpayer should support,” Ray explained. “Furthermore, if applied ethically, automation and optimization could bring real savings. But without the checks and balances, it becomes a shortcut to chaos.”

Cuts to the National Weather Service

Recently, there was a devastating flood affecting many communities in Central Texas, namely in the Big Country, Concho Valley area. It has claimed the lives of an estimated 100 people and has become a hot-button issue for the DOGE cuts that were made to the National Weather Service (NWS). The National Oceanic and Atmospheric Administration (NOAA), which houses the NWS, is among the agencies that have experienced mass layoffs under President Trump’s Administration. 

When asked about the tragedy in a press conference, whether the federal government should hire back meteorologists who were fired due to DOGE cuts, Trump said, “I wouldn’t know that. I really wouldn’t, I would think not. This was a thing that happened in seconds, nobody expected it, nobody saw it. Very talented people are there, and they didn’t see it.”

However, other experts claim that without the proper staffing for the NWS, there won’t be enough coverage to effectively warn people about pending national disasters. As far as fraud is concerned, without accountability for this public service, there seems to be a focus on passing the blame rather than helping taxpaying citizens who are struggling with disaster. There are also questions as to how local and federal funds will be allocated now.

Caitlyn Moorhead contributed to the reporting for this article.

Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.

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This article originally appeared on GOBankingRates.com: Is DOGE Preventing Financial Fraud or Making It Easier?

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