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DOGE makes fraud claims

The Trump administration has repeatedly said that cutting Social Security, Medicare, or Medicaid benefits is not on the agenda.

But it has previously claimed millions of dead people were collecting benefits, which was widely debunked. Musk also told Fox News people are using stolen Social Security numbers to claim benefits, but he has provided no evidence to support this claim.

Nevertheless, in an effort to clamp down on fraud and waste the SSA has enhanced identity procedures. These changes could make it more difficult for some Americans to claim their benefits.

For example, acting commissioner Lee Dudek said $100 million is lost each year to direct deposit fraud. This represents just 0.00625% of the $1.6 trillion the government distributes annually in Social Security benefits, but it’s the reason the agency cited for cutting its phone services.

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Service changes coming April 14

The SSA’s enhanced identity verification procedures are due to be implemented on April 14. They would require Americans unable to go online and use their personal my Social Security account to visit Social Security offices to change their direct deposit information for any benefit or apply for benefits. Only individuals applying for Social Security Disability Insurance (SSDI), Medicare, or Supplemental Security Income (SSI) can complete their claim entirely over the telephone.

“How many seniors no longer have a SS office near them now that dozens have been closed?” Cuban asked on X. “What are people without internet or the ability to travel, or don’t have an office near them supposed to do if they need to reconfirm their bank account?”

Laura Haltzel, a former associate commissioner at the Social Security Administration who resigned in late February, told Fortune that DOGE was using waste and fraud as a pretence to implement a “de facto” cut to Social Security payments for many seniors.

"We have always tried to make it easier for claimants … more efficient for claimants. And the justification that's being put forward for why they are pushing this is the idea that there's a great deal of fraud taking place," she said. "Well, the math there just doesn't add up."

If you or a loved one is concerned about your benefit payments, reach out to the SSA or a financial expert who can help you navigate some of the recent or upcoming changes.

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Vishesh Raisinghani Freelance Writer

Vishesh Raisinghani is a freelance contributor at MoneyWise. He has been writing about financial markets and economics since 2014 - having covered family offices, private equity, real estate, cryptocurrencies, and tech stocks over that period. His work has appeared in Seeking Alpha, Motley Fool Canada, Motley Fool UK, Mergers & Acquisitions, National Post, Financial Post, and Yahoo Canada.

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