What Is Social Security Fraud and How Do You Report It?

The Social Security Administration (SSA) oversees vital programs that provide a foundation of financial protection for millions of Americans, including retirement, disability, and survivor benefits. Their successful operation depends on the accuracy and honesty of the information provided by applicants and beneficiaries. When individuals intentionally deceive the SSA to receive payments, it is a federal offense with significant consequences.

Common Types of Social Security Fraud

Social Security fraud is broadly defined as intentionally providing false or misleading information to obtain benefits one is not entitled to receive. This can be perpetrated by beneficiaries, third parties, or through organized criminal schemes. The methods are varied, but all involve a deliberate act of deception to manipulate the system for financial gain.

A frequent type of fraud is committed by beneficiaries who knowingly conceal information that would affect their eligibility. For individuals receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), this often involves hiding work activity. A beneficiary might return to work and fail to report their earnings, which would affect their benefit payments. Similarly, SSI recipients are required to report changes in their living situation or marital status, as these factors are used to determine their monthly payment amount.

Another common scenario involves the misuse of a deceased person’s benefits. When a beneficiary dies, the SSA must be notified promptly so payments can be stopped. Continuing to cash a deceased individual’s checks or use their direct deposit funds constitutes fraud. A person may also fraudulently claim to be the representative payee for a child or incapacitated adult, receiving their benefits but using the funds for personal gain rather than the beneficiary’s needs.

Fraud is also committed by individuals who are not beneficiaries themselves. This includes using a stolen Social Security number (SSN) to gain employment, which can corrupt the victim’s earnings record, or to file for benefits under another person’s name. Criminals may also engage in scams where they impersonate SSA employees to trick a person into revealing personal information like their bank account details or SSN.

Information Needed to Report Fraud

To file a report, gather as much specific information as possible. While you can submit a report with incomplete details, a more thorough submission increases the likelihood of a successful investigation.

Start by collecting identifying information about the person you suspect is committing fraud. This includes their full name, date of birth, and their Social Security number if you know it. You should also provide their current address and any known telephone numbers. These details help the Office of the Inspector General (OIG) identify the individual and initiate a case.

Next, document the specifics of the fraudulent act itself. Provide a detailed description of what you believe is fraudulent, such as the name and address of an employer if the person is working while claiming disability. It is also useful to provide a timeline for the activity. If you know of any other individuals who have knowledge of the fraud, providing their names and contact information can help the investigation.

How to Report Suspected Fraud

Once you have gathered the relevant information, there are several ways to submit a report to the Social Security Administration’s Office of the Inspector General (OIG). The OIG provides multiple secure channels for reporting. You can choose the most convenient method and may remain anonymous.

The most direct method for reporting is through the OIG’s secure online portal on its official website, oig.ssa.gov. This method allows you to submit your report at any time. If you prefer to speak with someone directly, you can call the OIG’s fraud hotline at 1-800-269-0271, available from 10:00 a.m. to 4:00 p.m. Eastern Standard Time. For individuals who are deaf or hard of hearing, a dedicated TTY number is available at 1-866-501-2101.

You can also submit a report through traditional mail or by fax. A written statement detailing the suspected fraud can be mailed to the Social Security Fraud Hotline at P.O. Box 17785, Baltimore, Maryland 21235. Alternatively, you can fax your report to (410) 597-0118.

The Investigation and Prosecution Process

After a fraud allegation is submitted, it is reviewed by the SSA’s Office of the Inspector General (OIG). The OIG is an independent entity within the SSA tasked with preventing and detecting fraud, waste, and abuse. Analysts assess the credibility and completeness of the information to determine if it warrants a full investigation.

If the OIG determines the allegation is credible and has sufficient detail, it will be assigned to a team of special agents for investigation. These federal law enforcement officers may gather evidence through subpoenas for financial records, conduct surveillance, and interview witnesses, employers, and the subject of the allegation.

Once the investigation is complete and if sufficient evidence of a crime has been collected, the OIG refers the case to the appropriate prosecuting authority. For federal crimes, this is typically the U.S. Attorney’s Office in the judicial district where the fraud occurred. The prosecutor then reviews the evidence and decides whether to file criminal charges or pursue civil penalties.

Due to federal privacy and law enforcement regulations, the OIG cannot provide the person who made the report with updates on the status or outcome of an investigation. Unless an investigator contacts you directly for more information, you will not receive any communication after submitting your report. This confidentiality protects the investigation’s integrity and the privacy of all involved.

Penalties for Committing Fraud

Individuals found guilty of Social Security fraud face a range of penalties that depend on the nature and severity of the fraudulent act. These consequences are outlined in the Social Security Act and can be categorized as criminal, civil, and administrative penalties.

Criminal prosecution can lead to significant fines and imprisonment. Under federal law, making false statements to obtain benefits is a felony, which can be punishable by up to five years in prison. Fines for individuals can reach as high as $250,000, and the sentence often correlates with the monetary value of the fraud.

In addition to criminal charges, the SSA can pursue civil and administrative actions. A primary consequence is the requirement to pay back all benefits that were improperly received, a process known as restitution. The SSA can also impose civil monetary penalties for each false statement. Furthermore, the SSA has the authority to impose administrative sanctions, which can include being barred from receiving any future Social Security benefits.