This article doesn't support the argument upthread:
Illinois’ error rate, from either overspending on food stamps or not spending enough, is 1.74 percent, according to Januari Smith, a spokeswoman for the state’s Department of Human Services.
So (a) it's a tiny fraction, (b) it's an error metric, meaning some of it is money we didn't spend, and (c) nowhere is any of it categorized as "fraud".
http://watchdog.org/96500/illinois-rewarded-for-misspending-...