Some of these people are fugitive felons and prisoners, people illegally collecting benefits of a deceased person, and many others who have found ways to cheat Social Security.

On the other hand, Social Security has "offset" laws preventing those of us who have worked for and earned benefits under both Social Security and a government retirement system from receiving our full benefits.  This is unjust.  What is being done to reduce fraud? - A.L.

From the editor:

Fraud, waste, and abuse continue to plague Social Security. Recently, the state of New York announced that 36 people were charged for faking mental retardation, schizophrenia and other disabilities.  One of those charged had received $101,660 in Social Security payments since 1974.

In another case, a Georgia man who applied for disability benefits while in a wheel chair, when subsequently stopped for a traffic offense, led the police on a foot chase for three hours.

According to testimony given at congressional hearings earlier this year, for the government fiscal year 1999, the Social Security Administration (SSA) improperly paid approximately $4 billion in benefits.  The problem results from incomplete or inaccurate data used to make payment decisions.  Social Security programs rely upon an honor system whereby individuals must report any changes that may negatively affect their benefits.

The problem is compounded because few states maintain centralized records, and formatting of data is often incompatible among various federal and state computer systems.  Efforts to match Social Security numbers with persons incarcerated in state prisons, and state workers' compensation databases have moved slowly despite legislative initiatives.

Currently nearly $1 in every $4 of the SSA's administration budget is used for program safeguard activities.  The SSA is continuing to negotiate computer-matching agreements in numerous states and has a number of initiatives underway to reduce the rate of improper payments.

You can help.  To report suspicious activity, call the Social Security fraud hotline at (800) 269-0271 or click here to reach the Office of the Inspector General at the Social Security Administration: http://www.ssa.gov/oig/index.html.

To read another story on Social Security Fraud, entitled "Social Security pays Fugitives $30 Million Annually" click here:
http://www.tscl.org/newcontent/100872.asp

October 2001