SSA Reverses Fraud Crackdown After Probe Finds 2 Cases

A federal anti-fraud initiative led by the Department of Government Efficiency (DOGE) at the Social Security Administration (SSA) found only two likely fraudulent claims out of over 110,000 phone applications, revealing a fraud rate of just 0.0018%. The widely circulated claim that 40% of phone calls were fraudulent was based on a misreading of internal data and repeated by public figures such as Elon Musk and Vice President J.D. Vance. The anti-fraud measures, which included three-day holds and backend checks, caused a 25% slowdown in processing retirement claims and led to a backlog exceeding 140,000 cases. Internal SSA documents indicate the policy may soon be removed due to its negligible effectiveness and negative impact on public service. Critics, including lawmakers, have argued that the crackdown was based on misinformation and harmed beneficiaries. In response to public backlash, the SSA has already reversed related policy changes, such as restrictions on phone-based account changes.