Treasury Uncovers $31 Million In Improper Social Security Payments

The federal government has recovered more than $31 million in Social Security payments that were incorrectly sent to deceased individuals. This discovery came during a five-month pilot program aimed at reducing fraud and protecting taxpayer funds.

This effort was made possible after Congress temporarily granted the Department of Treasury access to the Social Security Administration’s Full Death Master File as part of the 2021 spending package. This database contains over 142 million records of deceased individuals, some dating back to 1899, providing a valuable tool to catch fraudulent payments.

Fiscal Assistant Secretary David Lebryk described this recovery as “just the tip of the iceberg.” Treasury officials estimate that over $215 million could be reclaimed by the end of the program in 2026, revealing the scale of the problem.

The exposure of these payments has led to renewed criticism of the federal government’s failure to prevent wasteful spending. Many believe that stronger oversight measures should have been in place to catch these errors earlier.

Some lawmakers are advocating for permanent access to the SSA’s records to prevent further misuse of taxpayer dollars. This program’s early success demonstrates the importance of inter-agency cooperation in combating fraud.

As the Treasury continues its investigation, more funds are expected to be recovered. This effort could pave the way for reforms that ensure taxpayer money is better managed and government programs operate more efficiently.