Social Security is an essential program that serves millions of Americans, but it’s also been subject to questions about fraud, waste, and abuse. As these issues are frequently raised, I believe it’s important to provide some clarity on the matter, addressing common misconceptions and providing factual information about the state of Social Security.
Fraud: What’s Really Happening?
Social Security fraud is a topic that often generates wild and disturbing claims. Some reports suggest everything from millions of deceased individuals still collecting benefits to fraudulent overpayments and stolen identities. Understandably, this leaves many Americans asking: What’s true? How significant is the fraud?
One of the most widely circulated claims is that tens of millions of dead people are still receiving benefits. However, this claim is largely unfounded. According to Lee Dudek, the Acting Commissioner of Social Security, the reported numbers actually represent individuals in the system who have a Social Security number but no date of death associated with their record. Importantly, these individuals are not necessarily still receiving benefits.
While any fraud is unacceptable, it’s important to put it into perspective. Improper payments, including those related to fraud, account for a small fraction of the total benefits paid out. According to a report from the Social Security Administration’s Office of the Inspector General (OIG), between fiscal years 2015 and 2022, the agency paid out almost $8.6 trillion in benefits, with $71.8 billion in improper payments. This amounts to less than 1% of the total payments made. Of these improper payments, fraud was responsible for only 3%.
If you suspect Social Security fraud, you can report it to the OIG either online at oig.ssa.gov or by calling the fraud hotline at 1-800-269-0271.
Waste: Understanding Inefficiency in the System
While fraud involves criminal activity, waste refers to the inefficient or careless use of resources. Waste in Social Security means spending more than necessary without benefiting the program or its recipients. This can take various forms, including overutilization of services, the ordering of unnecessary tests or procedures, or administrative inefficiencies that result in increased costs without improving outcomes.
Unfortunately, a precise estimate of waste within the system is difficult to come by. However, it’s clear that it represents a significant cost burden even though it is not a result of intentional wrongdoing.
Unlike fraud, which involves criminal deception, waste is typically about mismanagement or inefficiency. For example, waste could occur if the system mistakenly issues payments to deceased individuals or overpays beneficiaries due to clerical errors, without fraudulent intent.
The Social Security Administration’s Inspector General (OIG) plays a crucial role in identifying and addressing both waste and fraud within the system.
Abuse: What It Means and How to Report It
Abuse within the context of Social Security refers to the misuse of the system that results in harm or deprivation of necessary goods or services. This often involves a representative payee—someone who is designated to manage another person’s Social Security benefits. Abuse occurs when the payee misuses these funds for their own benefit, or fails to ensure that the funds are used to meet the beneficiary’s essential needs.
According to the Social Security Act, abuse is defined as the “knowing infliction of physical or psychological harm or the knowing deprivation of goods or services necessary to meet essential needs or avoid harm.”
In addition to abuse by representative payees, other forms of abuse include:
- Misuse of a Social Security number or benefits for personal gain
- Providing false or misleading information to begin or continue receiving benefits
- Hiding eligibility factors such as work history, earnings, disability status, or living arrangements
- Buying or selling Social Security cards
- Working under someone else’s Social Security number
- Filing fraudulent claims under another person’s Social Security number
If you suspect Social Security abuse, it’s vital to report it. You can do so through the Social Security Administration’s Office of the Inspector General (OIG). Their website provides detailed guidance and resources for reporting abuse and preventing further misuse.
Final Thoughts
Social Security fraud, waste, and abuse are significant concerns, but it’s important to keep things in perspective. Fraud, while troubling, accounts for a small portion of Social Security payments. Waste, although harder to measure, represents inefficiency rather than intentional harm. And abuse, particularly by representative payees, involves the misuse of funds meant to support vulnerable individuals.
By staying informed and vigilant, we can help ensure that Social Security remains a program that serves those who need it most, without being undermined by fraud, waste, or abuse.
