I think you are cheapening the meaning of "fraud" if you think there is hundreds of billions worth of it going on in the government.
It is estimated that six percent of all procurement dollars are lost to fraud nation-wide annually. If you apply that amount to USAspending.gov’s figure of $700 billion dollars that the Federal Government spent on average each of the past nine years, that would total $42 billion dollars per year or $378 billion dollars lost to procurement fraud during the past nine years.
1. http://www.dodig.mil/iginformation/archives/finalwebsnips.pd...