my imagination of it has been through almost nameless voycherization of 'benifits' to 'recipients' and that if 'cashed' by the 'providing agency' for a 'credit' which can probably be auctioned off in some foriegn auction and then they take a payout and walk off with money in a foreign account.
something like that.
oh, and the people don't have to be real, but they can vote and get welfare and have a mailbox.
this kind of scheme as a fiction has existed for a long time. Never had any hard evidence of it. but it just seems like it wouldn't be hard to pull it off for the criminal minded. they would need courts and post office to go along with it for the addresses of all the clients, and where all the mail goes.