The federal government has long struggled with technology and is far behind private industry in using data to prevent fraud and payment errors. The Computer Matching Act of 1988 is one of the biggest barriers to government using data and technology to safeguard taxpayer dollars from fraud and abuse.

Passed when personal computing was brand new, the Computer Matching Act reflected a fear that combining datasets would risk government overreach. This is important, but the Computer Matching Act’s overly broad approach also prevents monitoring federal payments the way your bank or credit card monitors your payments.

This law is a huge impediment to technology that could prevent fraudsters from exploiting programs meant to help Americans coping with situations ranging from disasters to retirement to economic shifts. It is also an obstacle to protecting Americans from identity theft.

In 2024, the absence of effective technology to safeguard payments resulted in an estimated $135 billion in overpayments, meaning the government paid out too much either accidentally or in response to a malicious actor. In

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