The Trump Administration’s Claims of Fraud in Social Security Payments to Deceased Americans

Introduction to the Controversy

The Trump administration has long claimed that the Social Security Administration (SSA) is erroneously making payments to deceased Americans, raising concerns about widespread fraud within the system. These claims gained traction after a November 2021 audit revealed that the SSA had paid approximately $298 million to 24,000 deceased individuals. While this figure is significant, it falls far short of the "tens of millions" of fraudulent payments alleged by the administration. The audit traced these overpayments to errors in policy and technician mistakes, highlighting that the issue, while real, is not as widespread as initially suggested.

The Administration’s Pursuit of Fraud

White House Press Secretary Karoline Leavitt emphasized President Donald Trump’s directive to Elon Musk and the Department of Government Efficiency to investigate fraud within the SSA. Leavitt claimed that the administration suspects "tens of millions of deceased people" are receiving fraudulent Social Security payments. However, recent audits by the Office of the Inspector General (OIG) at the SSA paint a different picture. Since 2021, these audits have identified only a few thousand cases of overpayments to deceased individuals. Business Insider analyzed three OIG audits, which collectively found that improper payments, including overpayments to beneficiaries and payments to deceased individuals, amount to billions of dollars annually. However, these improper payments represent less than 1% of the SSA’s total benefit payouts.

The Scale of Improper Payments

A July 2024 OIG report revealed that between fiscal years 2015 and 2022, only about 0.84% of the SSA’s payments were improper. Over this period, the SSA distributed nearly $8.6 trillion in benefits, meaning improper payments totaled approximately $71.8 billion. While this figure is staggering, it is important to note that much of this money is clawed back after identification. By the end of fiscal year 2023, the SSA had recovered $4.9 billion in overpayments, though an uncollected balance of $23 billion remained. Improper payments often occur due to outdated records or beneficiaries’ failure to report changes in their status.

Recommendations for Improvement

The OIG has proposed several measures to address improper payments, including creating reports to identify deceased beneficiaries and implementing automation and data analytics to detect overpayments. For instance, a July 2023 audit identified 18.9 million individuals born in 1920 or earlier who held Social Security numbers but had no death records on file. However, only 44,000 of these individuals were receiving payments at the time of the review. This discrepancy has raised questions about the accuracy of SSA records. Elon Musk has also weighed in on the issue, noting that some records appear to show beneficiaries aged 150 years or older. PolitiFact has since clarified that such anomalies often result from outdated coding systems, where missing birthdates are default-coded to 1875.

Leadership Changes at the SSA

The scrutiny of the SSA has led to significant changes in leadership. Michelle King, the acting commissioner of the SSA, stepped down in July 2024 after the Department of Government Efficiency inquired about accessing sensitive SSA information containing Americans’ personal details. King, who had worked at the agency for over 30 years, was replaced by Leland Dudek, who now heads the SSA’s anti-fraud office. Meanwhile, President Trump has nominated Frank Bisignano, a highly qualified candidate, to lead the SSA, with confirmation expected in the coming weeks.

Conclusion: Balancing Fraud Concerns with Reality

While the Trump administration has made significant claims about fraud within the SSA, the reality is more nuanced. Audits have shown that improper payments, while significant in absolute terms, are relatively rare compared to the vast scale of SSA operations. The administration’s focus on fraud has led to increased scrutiny of the agency and calls for reform, but it is important to balance these concerns with the understanding that the SSA remains a critical source of support for millions of Americans. As the SSA works to implement better oversight and recovery mechanisms, the public should remain informed about both the challenges and successes of this vital institution.