It appears that the Social Security Administration (SSA) has been spread quite thin after the Department of Government Efficiency (DOGE), headed by Elon Musk, opted to downsize the agency’s workforce by 7,000 employees.
Now, it appears that a key factor of an anti-fraud measure that had been put in place by the agency — and had sparked major controversy with concerned senior citizens — has been dropped.
Anti-fraud measure dropped at Social Security Administration
The Social Security Administration (SSA) has rolled back a key component of a controversial anti-fraud policy just weeks after it was introduced. According to a report from CNN, based on internal documents and emails, the agency will no longer delay retirement benefit applications by three days to screen for potential fraud.
The reversal comes amid a growing crisis inside the SSA. The agency is now facing a backlog of nearly 575,000 retirement claims, with around 140,000 pending for more than 60 days. Staffing shortages caused by recent downsizing efforts have only made matters worse.
The anti-fraud measure was initially pushed by the Department of Government Efficiency, led by Elon Musk, and had been revised several times before going into effect. The plan originally sought to ban beneficiaries from applying by phone, citing challenges in verifying identities remotely. Instead, applicants would have been required to use their my Social Security accounts online or visit an SSA office in person.
Advocates for seniors and people with disabilities raised alarms, warning the policy would unfairly burden individuals without access to reliable internet or those who live far from SSA offices.
The new rules created widespread confusion, and soon after implementation, the SSA’s phone lines and field offices were overwhelmed with concerned beneficiaries. Less than two weeks later, the agency modified the policy: it would now apply only to phone applications for retirement, survivor, or family benefits, and its rollout would be delayed to April 14. Phone claims would still be reviewed for fraud, but not automatically delayed.
SSA officials stated they are continuing to refine their fraud detection algorithm to flag only the claims most likely to be fraudulent, aiming to strike a balance between protecting the system and speeding up legitimate claims.
However, an internal document obtained by Nextgov/FCW and cited in the CNN report revealed that fewer than 1% of claims were flagged, and only two out of more than 110,000 showed a high probability of fraud. At the same time, the checks were causing claim processing times to rise by 25%, damaging customer service.
“It created a problem in customer service where one didn’t exist, and it didn’t do anything to prevent fraud,” said Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities. Romig previously worked at the SSA during the Biden administration.
Record Claims and Workforce Frustration
SSA leadership has also been under fire internally. In an email obtained by CNN, Stephen Evangelista, Deputy Commissioner for Operations, described a record number of claims driven by a surge in Baby Boomer retirements and new legislation that increased benefits for millions of public-sector workers.
To tackle the crisis, Evangelista called for a “sprint”—a focused effort to increase claim processing by 10% through the end of May. But the message didn’t sit well with staff.
“Employees find it to be another sign of disrespect from an out-of-touch agency leadership,” said Joel Smith, president of the American Federation of Government Employees Local 3184, which represents SSA workers in nearly 100 offices. “Workers weren’t looking for another demotivational email from leadership that cut their telework, encouraged them to quit, and created an unnecessary backlog.”
The agency is currently downsizing its workforce by about 7,000 employees, or 12%, through buyouts and early retirement offers. While around 1,000 staff are being reassigned from headquarters to field offices, the time required to train them means current staff remain under heavy pressure.