Part 2/11:
Musk highlights a fundamental flaw: numerous government systems do not communicate with each other. This disconnect creates loopholes exploited by fraudsters. For example, thousands of fraudulent small business loans have been issued—some to infants as young as nine months old, and others to individuals over 120 years old. Many of these recipients are clearly fake, indicating systemic vulnerabilities in verifying identities.
More concerning are cases where social security numbers of deceased individuals are manipulated to claim benefits such as disability or unemployment. Because databases don’t cross-reference effectively, fraudsters succeed in stealing billions, leaving legitimate beneficiaries without support and taxpayers footing the bill for massive fraud schemes.