Social Security fraud comes in many forms and can be difficult to spot. Whether it’s an untruthful statement on a federal form or a scam over 27 years that netted an estimated $400 million in disability funds, fraud is fraud. Read on for what to look for and what to report if you suspect a crime.
Making false statements: When submitting Social Security benefits paperwork, the applicant acknowledges all forms are correct and true. Reporting something the applicant knows not to be true is against the law. This includes:
- Incorrectly reporting marital status
- Untruthfully claiming to be blind while holding a valid driver’s license and driving
- Reporting no income while making money from an outside source, including rental income or insurance benefits
Concealing information: Making a false statement, concealing facts or misrepresenting events may be considered fraud. Any change in circumstance — including leaving a job, returning to work or being put in jail — must be reported. It is also a crime to continue receiving Social Security checks on behalf of a deceased person.
Impersonating a Social Security Administration employee: Pretending to be a SSA employee over the phone, in person, through email or in any other way is illegal. How to spot it: A call from someone pretending to be a Social Security Administration employee is likely an attempt to attain confidential information and steal your identity. The caller may ask for your Social Security number, date of birth, mother’s maiden name or financial information. He or she may say the Social Security Administration computers are not working or mention the Medicare prescription drug program. If you’re unsure whether a call is legitimate, call 1-800-772-1213 to verify the reason for the call and the caller’s name. How to report it: If you have reason to believe someone impersonating a Social Security Administration employee has called you, report it. Give as much detail as possible, including the caller’s name and telephone number, the time and date of the call, the information he or she requested and any other details you remember.
Misusing benefits: For people who receive Social Security Benefits but are not able to handle their own financial affairs, the Social Security Administration may appoint a Representative Payee. This representative — a relative, friend, other individual or even an organization — may be committing a crime by misusing the funds. Representative Payees are responsible for evaluating the beneficiary’s needs and using the benefits in his or her best interest, maintaining awareness of his or her needs and conditions, applying the payments only for the beneficiary’s use, and notifying the SSA of any changes in circumstance that will affect Payee responsibilities or the amount of money the beneficiary receives. Payments can only be applied to the beneficiary’s immediate and essential needs, including food, shelter and utilities, clothing, medical and dental care, insurance, hygiene, education and rehabilitation. Any remaining funds must be saved or invest in a trust on the beneficiary’s behalf. The money can’t go toward to the Representative’s own expenses or to another person’s account. How to report it: Provide the names, dates of birth and Social Security numbers of the Payee and the beneficiary and any details on the alleged fraud, including the nature of the abuse and when and where it took place.
Buying or selling counterfeit or real Social Security cards: It is a crime to buy or sell real or counterfeit Social Security cards. How to report it: Provide as much information as possible, including the name and any other personal information of the person buying or selling the cards, the location of the sale, contact information and cost and payment methods used.
Over-collection: In general, Social Security disability benefits are reduced for people also receiving workers’ compensation. Not informing the SSA of this could be fraud. Report any of these crimes online by phone at 1-800-447-8477 or by mail: US Department of Health and Human Services Office of Inspector General ATTN: OIG HOTLINE OPERATIONS PO Box 23489 Washington, DC 20026
