Treasury Investigates DOGE's Payment System Access As Concerns Mount

The Treasury Department's Office of Inspector General launched an audit of security controls for federal payment systems on Friday, following concerns about access granted to the Department of Government Efficiency (DOGE), an initiative tied to Elon Musk.

The review comes after Democratic lawmakers raised alarms over potential improper access and the implications for government financial security, the Associated Press reports.

What Happened: The audit will assess federal payment system security over the past two years, specifically investigating allegations of fraudulent access and potential misuse tied to DOGE's involvement. According to Deputy Inspector General Loren J. Sciurba, the investigation aims to assess whether adequate safeguards were in place to prevent unauthorized access.

The Treasury initially stated DOGE's access was read-only but later admitted that an employee had briefly obtained editing privileges before the mistake was corrected, the AP reports.

The controversy deepened when a 25-year-old Treasury employee, Marko Elez, who was involved in granting DOGE access, resigned after his past racist social media posts surfaced. His departure ignited further scrutiny, especially after Musk, alongside President Donald Trump and Vice President JD Vance, advocated for his reinstatement.

Meanwhile, former Treasury secretaries and advocacy groups have expressed concerns that DOGE's access to payment systems could jeopardize the integrity of congressional funding allocations.

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Why It Matters: The probe adds to mounting tension between the administration and federal oversight officials, as the Trump White House has recently dismissed multiple inspectors general. The situation has prompted a legal battle seeking to reinstate those removed, raising broader concerns about government accountability.

Musk's increasing commitment to DOGE initiatives has also sparked market speculation. Tesla Inc. has seen a 20% decline since Trump's inauguration, with investors weighing whether Musk's focus on cost-cutting efforts within DOGE is diverting attention from his other ventures.

Wedbush analyst Dan Ives remains optimistic, maintaining a $550 price target for Tesla, arguing that fears over brand damage are overblown. However, other analysts warn that prolonged distractions could impact Tesla's product pipeline and future innovations.

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