Federal counterterrorism sources warn that millions of dollars stolen in welfare-fraud schemes in Minnesota may have been routed to the Somali terror group al-Shabaab. The fraud predominantly targeted programs such as pandemic-era child-nutrition services, housing stabilization benefits and autism support—one scheme alone reportedly stole around $300 million in federal aid.
Investigators say the stolen funds were transferred via informal hawala networks, with funds ultimately ending up in Somalia, where al-Shabaab is believed to receive a portion. The U.S. Attorney’s Office in Minnesota has charged dozens of individuals across multiple fraud rings and estimates the total losses could amount to billions of dollars.
Law-enforcement experts say the money flows add a national-security dimension to what began as purely financial crimes, raising fears that illicit welfare transfers may be funding extremist activity abroad.