The Social Security Administration (SSA) has pulled back a major part of its anti-fraud policy that caused counterreaction from the elderly and vulnerable populations. As per an internal memo by the agency, which was reviewed by CNN, it will no longer take three days to conduct fraud reviews in order to process retirement benefit applications.
The agency is facing a growing crisis, where more than half a million retirement claims are still currently pending and a reduced workforce is under pressure to increase processing times.
Fraud Checks Caused Delays, Stirred Public Outcry
The Department of Government Efficiency, which is led by Elon Musk, pushed forward this anti-fraud policy to make government systems more efficient. The DOGE initially changed the identity verification method from telephonic verification to either verifying beneficiaries’ identity online or at an SSA office.
Preventing people from updating their details over the phone caused a wave of concern amongst retirees and vulnerable populations. Many of these citizens are concerned that their payments may be disrupted if they do not verify their identity in person or online. This led to confusion and stress amongst the elderly population.
Rule Revised, Then Mostly Dropped
As a result of the public outcry and backlash, the SSA scaled back the policy by limiting fraud screenings to claims made by telephone and only conducting fraud reviews if the system detected any irregularities.
Now, even those safeguards have been lifted. The agency has scrapped the three-day holding period altogether and it will minimise its fraud detection process to focus only on claims with the highest likelihood of fraud.
Too Little Fraud, Too Much Delay
According to an internal May document obtained by Nextgov/FCW, out of more than 110,000 retirement-related phone claims reviewed under the new rule, only two were flagged as highly suspect which is barely 1%.
“No significant fraud has been detected from the flagged cases,” the internal document said
Staff Slashing Fuels Backlog & Operational Strain
Citizens required to verify their identity in-person would potentially increase the number of patrons visiting the SSA field offices. This would lead to an approximate increase of 75,000 to 85,000 people per week. According to a memo which was obtained by CNN, this will result in longer wait times as well as potential delays in processing applications.
This shift comes amid a major downsizing at SSA. The agency is cutting approximately 7,000 jobs while closing or consolidating multiple social security field offices. With fewer staff and outdated systems, field offices already struggle to handle routine services. Applicants can wait more than a month for an appointment and endure long wait times.
Push for Faster Processing Hits Nerve with Staff
In an attempt to ease the backlog, SSA leadership urged staff to step up. Deputy Commissioner Stephen Evangelista requested that SSA employees increase their daily output by 10% throughout May. However, as a result of the staff cuts, many were not happy. Union leader Joel Smith, who represents SSA workers across the South and Southwest, said “employees find it to be another sign of disrespect from an out-of-touch agency leadership.”
What can beneficiaries do?
- Ensure that your banking details are updated via your online Social Security account (https://www.ssa.gov/myaccount)
- If you are visiting field offices, prepare for long wait times
- Utilise the SSA website for verified information
Takeaway
In response to public outcry and internal data, SSA has reversed course on its “three-day hold” policy, acknowledging that the very low rates of fraud doesn’t justify the mounting delays and stress. However, as a result of the staff shortages and outdated systems, the SSA must consider a smarter more sustainable approach.