Social Security Administration Cracks Down on Identity Fraud

The Social Security Administration (SSA) will begin requiring in-person identity checks for new and existing recipients starting March 31st, a move aimed at curbing fraudulent claims. The agency plans to limit phone interactions to verify identities, forcing millions of people to visit field offices.

The change affects new applicants and current recipients who want to update their direct deposit information. Retiree advocates warn that this move will disproportionately affect older Americans in rural areas with limited access to SSA offices and internet connectivity.

The agency also announced plans to expedite processing for recipients’ direct deposit changes, reducing the wait time from 30 days to one business day. Acting Commissioner Leland Dudek cited concerns about $100 million lost annually due to direct deposit fraud as justification for the new measures.

However, some lawmakers, including Connecticut Rep. John Larson, have criticized the move, accusing President Trump and Elon Musk of trying to create chaos and inefficiencies at SSA, which could lead to privatization of the system. The administration has been facing concerns about SSA office closures and massive layoffs, with many fearing that these moves will make it harder for people to access benefits.

As part of its efforts to reduce government spending, Musk has promoted debunked theories about Social Security and labeled it a “Ponzi scheme.” Labor unions have also sued the agency, seeking an emergency order to stop access to sensitive SSA data.

Source: https://apnews.com/article/social-security-fraud-waste-doge-elon-musk-212e3089951f731fd3f83443e104b315