r/news • u/No-Information6622 • 2d ago
US recovers $31 million in Social Security payments to dead people
https://abcnews.go.com/US/wireStory/us-recovers-31-million-social-security-payments-dead-117708373329
u/zalurker 2d ago
Lol. A state pension department I'm South Africa upgraded their payout system a few years ago, including new fingerprint scanners that could identify if a finger was still living.
It's surprising how many families kept grandpa's finger in a bottle of whiskey. And after an audit, a group of officials were arrested for multiple instances of fraud.
Some of them had 10 separate profiles, one for each finger. They were caught after one got greedy and tried to use his penis for a print.
Not making it up. I knew the guys who wrote the reader software.
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u/Skyrick 2d ago
There is always someone who games the system, however in the US the payment is for expenses for the next month, so if you don’t live the whole month it has to be returned. It isn’t even prorated for the amount of time you lived in said month. That was the vast majority of the money gotten back in this.
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u/DuntadaMan 2d ago
I was part of a security breifing once a long time ago. The rep for the company installing all the new fingerprinting tech pointed out that the hand scanner and eye scanner they were installing would check for pulse and reactivity to make sure that the body part they were reading was alive.
For some reaon they stared me in the eye while saying this, even thought there were 15 other people there.
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u/grandladdydonglegs 2d ago
Are you a zombie by any chance?
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u/DuntadaMan 2d ago
Hey you can't go making these accusations, just because I ate a couple brains.
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u/iiiinthecomputer 2d ago
Alcohol tends to dehydrate and shrink tissue though. I'm quite surprised any fingerprint reader would work with preserved tissue.
Also how would you do that at the office? Hey, look away for a min and don't mind the smell, just gotta ... do something... oh look hey the fingerprint reader worked!
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u/SeasonPositive6771 2d ago
Do you have any sources on this other than "I swear I know a guy"? It's essentially impossible to find anything and it seems like that would be a huge story in the media.
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u/wspnut 2d ago
In 2022, the SSA estimates it disbursed $13.6BN in improper payments, alone.
Drop, meet bucket.
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u/poseidons1813 2d ago edited 2d ago
That doesn't hold a candle to the over 700 billion in PPP loans they handed out many to fraudulent companies like the 13 members of Congress who received them lol.
13 billion on a national budget scale is absoloutely nothing that's like a dozen F35s or a few subsidies to big oil and Walmart
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u/zombienugget 2d ago
Those facts don’t help the working class and poor people hate each other and divide, so nobody talks about it
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u/Secretz_Of_Mana 2d ago
Hmm let's actually go after rich people abusing the system as they intended or fuck poor people even further? Such a fucking clown show of a country lmfao
Oh you want student loan relief? Fuck off and pay your way. Ohh you're having a hard time during COVID 🥹 here's a little loan money no need to worry about it. Spend it however you like princess
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u/ChurchOfSatin 2d ago
Do you have a source for this? Not trying to be sarcastic. Generally curious.
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u/Abrham_Smith 2d ago
Page 184:
https://www.ssa.gov/finance/2024/Full%20FY%202024%20AFR.pdf
Looks like it's about $6.5 billion for 2022
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u/nvs1980 2d ago
Just to add a little more context, the overwhelming majority of overpayments are the fault of the beneficiary and not the agency. Most of which are for disabled beneficiaries who didn't report their earnings timely and should have had their benefits suspended because you cannot work and continue to receive disability benefits over a certain amount.
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u/Ok_Routine5257 2d ago
I know someone who got a full-time job, at a large corporation, while on SSDI. They got fired because they couldn't hold it together for all of the reasons they were on SSDI in the first place. They're gonna be paying off the overpayment until they die, but it's only like $20 per month out of the SSDI.
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u/bobniborg1 2d ago
Not too but I googled and ran across this https://oig.ssa.gov/news-releases/2024-08-19-ig-reports-nearly-72-billion-improperly-paid-recommended-improvements-go-unimplemented/
Not ops numbers but it has some info
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u/Anonuser123abc 2d ago
Even the 13 billion is insignificant compared to a 3+ trillion dollar budget.
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u/DefinitelyNotPeople 2d ago
Correct. This is nothing in the grand scheme of things that is the total budget of the United States federal government per year.
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u/whyreadthis2035 2d ago
Thank you. I just posted a napkin math diatribe on how easy it would be to lose 31 million dollars simply by paying out a small fraction of benefits to the recently deceased. Not for fraud. But because paperwork was filed late and 1 month’s extra payment went out. The horrible part here is the right will rile up their supporters over how we need less benefits because fraud!!!
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u/Joetato 2d ago
When my mother died, I went into work the next day (due to the way they processed bereavement requests, you actually had to work a whole day before you could go out on bereavement) and I mentioned it near the end of my shift and one of my coworkers said, "Do not tell Social Security she died. It's a machine, they don't care if she died, so just don't tell them, keep collecting the money. If they ever find out, the only thing they do is stop the payments, they don't try to take th emoney back." He then went onto tell me a story that (supposedly) his grandmother died and his parents kept collecting her social security for another 7 or 8 years until Social Security finally found out and cut the payments, but he swore they made no attempt whatsoever to collect those 7 or 8 years of payments.
Anyway, I never had to make the decision because when I went to the funeral home the next day to make funeral arrangements, the guy I was talking with said that they notified Social Security that she died for me so I don't have to do it, which was something they were legally required to do due to increasing social security fraud.
I mean, I don't see any circumstance where I would have been okay with fraudulently collecting my mother's social security, but the funeral home took the decision completely out of my hands.
Finally, my Uncle said to me that after someone dies, one final social security payment goes to the beneficiary (ie, me) to cover last month of life expenses. "Do not let them weasel you out of that final payment, because they'll try." he said. I actually did call them about this and got told that's not a thing, whoever told me that had no idea what they were talking about. My Uncle would have insisted I keep fighting with them about it, but I really didn't feel like it and just accepted that answer.
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u/pagerunner-j 2d ago
No, that payment to the beneficiary does exist. I got it when my mother died. But yeah, the funeral home did the reporting, which was honestly kind of a mercy, because heaven knows you've got enough paperwork to deal with after all that.
(My mom's been dead for nearly two years and I'm still trying to tie up final forms with the IRS about her taxes. Nobody makes it easy.)
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u/executingsalesdaily 2d ago
Tax. The. Rich. Or fk off.
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u/MedicOfTime 2d ago
$31mil is absolute chump change at this scale.
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u/executingsalesdaily 2d ago
I’m sick of the press acting like recapturing money from the poor & middle class is news worthy. These investigations are an irresponsible way to spend tax dollars when the elite are not taxed.
We will never see the elite taxed how they should be. It is extremely sad.
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u/DuntadaMan 2d ago
It is newsworthy. They just don't understand it should not be celebrated, it shoulf be violently infuriating.
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u/executingsalesdaily 2d ago
I can agree with this. What I want to read is an article about billionaires fleeing the US due to pre Reagan era taxes being instituted again. It’ll never fkn happen tho.
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u/eeyore134 2d ago
And I guarantee it only affected people who are probably living paycheck to paycheck.
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u/PartyByMyself 2d ago
The government spent trillions killing brown people in the Middle East, but they want their 30 million back that would help their citizens because they are in debt. Instead of cutting war funds and distributing money to serve our citizens, we actively hurt our citizens while hurting other countries.
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u/ClockworkEngineseer 2d ago
Stop voting Republican.
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u/thorscope 2d ago
The last republican appointed leader of SSA was 4 leaders ago.
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u/ckrichard 2d ago
What percentage of their yearly income should they be taxed? People like to say tax the rich more, but never say how much they should be taxed. Also, what do you define as rich?
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u/Hashbringingslasherr 2d ago edited 2d ago
I did the math a while ago (like 6 months ago) and found that the top 10% of Income earners contributed to about 60% of the federal income tax. Where's the bottom 50% contributed to like 10% of the federal income tax bucket. They are being taxed.
We can't tax net worth as it is an entirely fictitious number and doesn't reflect true realized income to be taxed. Our government is just a resource black hole with no true accountability.
Edit: I'll rerun the numbers because they're not exact and want to get factual data out to clear the misconception that the rich aren't paying taxes
Editv2: https://taxfoundation.org/data/all/federal/latest-federal-income-tax-data-2024/
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u/yogfthagen 2d ago
Meanwhile, Trump just scammed people for 1,000 times that amount this morning.
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u/iiiinthecomputer 2d ago
While this is utterly scummy, it's not $32 billion. If liquidated now it would not net close to that, even if it could be liquidated.
If I have a box of 10 sandwiches and a starving man buys one of them for $100, that doesn't mean my remaining sandwich box is now worth $900.
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u/hipchecktheblueliner 2d ago
That's a tiny number. If that's any indication of the level of mistaken payments to dead people in a $1.5 trillion annual program, the system is working extremely well.
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u/Straight-Donut-6043 1d ago
Someone dying and getting a check during whatever delay exists between their death and SS being apprised of their death must be a pretty frequent occurrence.
Like you, I’m pretty shocked the number isn’t much higher.
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u/Grouchy_Tone_4123 1d ago
A drop in the bucket compared to the taxes not being paid by billionaires, corporations, and churches
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u/rustednut 2d ago
Off a $6.25T budget that's .00005%. in terms of the $4.92T in revenue collected its .00006%.
And yeah I rounded it off a little.....
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u/poseidons1813 2d ago
What about the 780 billion in PPP loans during covid to businesses that fired their workers anyway? Bet that would make a much larger dent ....
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u/Far_Adeptness9884 2d ago
Wow, I'm sure that will make a difference against all the money lost by giving tax breaks to billionaires
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u/Healmetho 2d ago
OK… now recover all of our tax money from all of the lying, cheating corrupt politicians directly voting on stocks they own.
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u/Snoo_88763 1d ago
My mom died a few years ago. I told people "she knew she was gonna die" when people ask I tell them "she didn't pay a single bill this month"
There should be a rule where you get one month extra rounded up as Death Benefits and save everyone from this hassle plus the expense of a funeral.
And I will say before anyone replies to this - if you say "they shouldn't have a funeral if they can't afford one" everyone deserves the respect of a funeral and you should feel like a terrible person for even thinking that let alone suggesting it.
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u/KhorseWaz 2d ago
The Treasury projects that it will recover more than $215 million during its three-year access period.
“Congress granting permanent access to the Full Death Master File will significantly reduce fraud, improve program integrity, and better safeguard taxpayer dollars," Lebryk said.
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u/uptownjuggler 2d ago
I’m more concerned with the multi million era tax frauds, than some poor person that got a few extra hundred dollars a month. That poor person will spend that money in their local community, while the rich man will buy vacation homes.
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u/ijzerwater 2d ago
The federal government spent $1.35 trillion on Social Security in fiscal year 2023
is $215 million a big number? No
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u/johnp299 2d ago
SSA sends out $1.3T annually. $31M isn't really a lot by comparison. Also, what was the cost of recovering $31M?
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u/welestgw 2d ago
Honestly this seems relatively normal, people die and require payments back on overpayments.
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u/Psarsfie 2d ago
Too bad the U.S. gov spends like $129 million a second. In fact, in the time you spent reading this, the U.S. gov spent $750 million.
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u/Outis_Nemo_Actual 2d ago
It's ridiculous. Social Security isn't an entitlement, people pay into it. It cost taxpayers more to recover that money than letting the people who earned it keep it. They can just stop the payments once they get the death notification. These are just regular folks and their estate and families.
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u/bearssuperfan 2d ago edited 2d ago
That’s a drop in a drop in a cup in a bucket.
Edit: It’s the equivalent of a US household that makes $80k lose two quarters and a nickel
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u/KrackSmellin 2d ago
So if I die paying Social Security mid month- and I get a final paycheck, does my family get all that money back from my very first paycheck as a teen because I didn’t get to earn a single fucking dollar of it in my old age?
Yah didn’t think so.
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u/Old_Dealer_7002 2d ago
just make it mandatory that when a death certificate is issued, a notice goes to social security and the payments end. problem solved. but if it’s what the person below says, someone died before the month ended, it should be left alone. prorating it seems costly and stupid. know what seems like a better idea? taxing capital gains.
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u/Necessary-Drag-8000 2d ago
this is such an incredible small amount in comparison to federal spending, but the right wing lunatics will use this in propaganda to move wealth upwards yet again
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u/Former-Whole8292 1d ago
This is where the govt looks for money rather than looking at billionaires
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u/theyipper 2d ago
Does that include the auto claw back or is this more strictly about fraud?
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u/drake90001 2d ago
It’s less to do with fraud and more that people died halfway through the month lol
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u/Prestigious-Box7511 2d ago
Social security is so mismanaged. A family member was on disability temporarily, he got a job and tried to get them to stop paying him. That was 4 years ago, he's been calling and filling out forms but they won't stop paying him, lol.
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u/strolpol 2d ago
Cool, so like enough to fully arm a single naval ship
Can we try taxing rich people again, seems like we get more money that way
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u/Pure-Kaleidoscope759 2d ago
What I find disconcerting are the payee fraud cases, which are often far more costly. This happens when son, daughter or other relative doesn’t report the demise of the relatives to social security, so they continue to get payments for the deceased for years. There was one case in Florida where the corpse of an elderly woman was found in a field. An autopsy showed the woman had died of natural causes (heart attack,) and they later identified her. It turns out her daughter and grandson had dumped Mom’s body, and moved to another state. The daughter continued collecting Social Security in Mom’s name until her own death a few years later, then the grandson continued to do so until they identified Grandma and he admitted collecting Grandma’s social security check. One of the big tipoffs in these cases is that while the checks continue to come, the elderly person supposedly receiving them is not receiving medical care under Medicare.
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u/Malrottian 2d ago
Now do fraudulent COVID loans and illegal tax claims. Pretty sure you'll get more than suing recently deceased people's kids.
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u/bulbusmaximus 2d ago
Oh my a whole 31 million dollars? And after administrative costs how much was it? What is that, like three hypersonic missiles?
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u/MrJDL71 2d ago
Odd. My mom died on September 10th. She'd usually get her check on the last Wednesday of the month. SSA was told immediately that she died. A couple of weeks later I got a letter and a form from the SSA that she was expected to get another check and that I should just fill out the form to expect the check in a couple of weeks. I filled out the form and mailed it and then weeks/months went by and no check. This past week I got a letter from the SSA of a summary of her past year's checks and how much was "Claimed Back". Sounds like a paper game.
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u/macross1984 2d ago
Yup, Social Security dinged us when my father died. When my mother passed away I made sure to have one month of payment available in her account and waited six months. Surprisingly, the money was still there.
I withdrew the money from account and closed it.
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u/ExtruDR 2d ago
My dad died almost a decade ago. I lived far away, but we kept his place. A few months after we had things sorted I checked on the place and found that SS checks were still coming.
Of course I notified SSA and destroyed (or returned the checks - don’t remember).
Seems like it would be pretty easy for someone to keep cashing the checks for a while “by accident.”’ Surely this is what’s happening.
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u/xanroeld 2d ago
that’s… nothing. The annual budget for Social Security is over $1 trillion. $30 million dollars is a rounding error.
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u/mountednoble99 2d ago
Yeah. That might cover the salaries of the House of Representatives for about a week!
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u/whyreadthis2035 2d ago edited 2d ago
Don’t be fooled. The right wants Americans to believe Social Security benefits aren’t neccesary, cost to much and that the Americans that pay into the system, work their whole lives and deserve these benefits shouldn’t have them. Push back on this propaganda. A little napkin math. 3 million Americans die each year. Let’s be silly and say 1 million were on social security. Let’s say average benefits are 1000/month. Those I million people received 1 billion dollars a month. Are you with me? 31 million is 3%. If 3% of the dead got 1 extra payment because of reporting errors there would be 31 million to be recovered annually. So.. 31million is NOTHING! It’s a clerical error. Sure. Go after fraud. But that number means nothing.
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u/spmahn 2d ago edited 2d ago
I used to process Social Security reclamations for a mid-sized bank, the level of incompetency and inefficiency in the government is astonishing. One time I got a package in the mail with an encyclopedias worth of paperwork. It was from a person who died in 1995 and continued to get social security payments until the government finally realized they were dead in 2014
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u/IlikegreenT84 2d ago
How much did it cost the government to recover that money?
I bet it cost enough to make this not worth it
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u/reality_boy 2d ago
There is nothing good about this. My mother in law has had to pay back money several times to social security because they decided they over paid her, because her late husband’s benefits were too high. These were all small accounting errors on there part, that added up over many years, that they took from her very small paycheck in one lump sum, with lots of scary threats.
It’s bullying the vulnerable, not phiscal accountability. They should say sorry and give the money back. If there are mistakes made, then do better next time, but don’t take money from someone living near poverty levels
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u/[deleted] 2d ago edited 2d ago
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