Report Shows $7.9 Billion In Fraudulent Social Security Payments

May 3, 2013

While Social Security assists millions of Americans with their income, new data is showing the system is plagued with fraudulent and improper payments. Experts believe that the Social Security Administration (SSA) made more than $7.9 billion in improper payments last year alone.

Records indicate that roughly $4.7 billion in wrongful payments were made last year through Supplemental Security Income, giving this area of the program an improper payment rate of 9.2 percent. Furthermore, another $3.2 billion in illegal payments came from the Old Age, Survivors’ and Disability Insurance (OASDI) program.

CNS News stated the major reason for these improper payments seems to be Social Security Disability fraud. The problem can take many different forms, including beneficiaries who fail to inform the government of changes to income, or living arrangements. Each of these factors can significantly affect the amount an individual recipient is awarded in benefits.

To solve the problem, the new SSA Commissioner, Patrick O’Carroll, Jr., has stated he intends to have the agency conduct more reviews of recipient’s cases to ensure beneficiaries are not working on the side. Also, a computer database will be implemented that allows the agency to cross-reference information on beneficiaries in order to cut back on improper payments.

The Social Security Lawyers with Fleschner, Stark, Tanoos & Newlin explain the problem of overpayments could make it more difficult for those who are applying for benefits to receive approval. The firm suggests discussing your case with an attorney if considering applying for benefits.

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