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How do fraud rings obtain Social Security numbers to apply for benefits for undocumented immigrants?
Executive summary
Fraud rings obtain Social Security numbers (SSNs) through identity theft, stolen or fabricated documents, and by exploiting mismatches and gaps in SSA records, then use those SSNs to get work, benefits or services; law enforcement investigations have found cases of dozens using stolen SSNs and audits show missing death records that complicate detection [1] [2]. The Social Security Administration (SSA) and outside analysts say most noncitizens only get SSNs if authorized to work, and official estimates indicate overall SSA fraud is small (Inspector General / fraud rate <1%), while advocacy and research note undocumented workers often pay taxes under false or borrowed SSNs yet cannot legally collect benefits tied to another identity [3] [4] [5].
1. How fraud rings acquire SSNs: identity theft and stolen records
Investigations show a common method is stealing real Americans’ identities—fraudsters use names and SSNs taken from victims to create payroll, health or benefit records; a multiagency ICE operation uncovered about 70 illegal workers using stolen SSNs and identities, leaving more than 100 victims [1]. Congressional reporting and watchdog audits have long pointed to identity-theft-driven growth in SSA’s Earnings Suspense File—wages reported under mismatched names/SSNs—suggesting stolen numbers are a major vector [6].
2. Creating or fabricating SSNs, and using borrowed numbers
Some people use fabricated numbers or “borrow” another person’s SSN to work or file taxes. Legal and industry commentary notes that for many undocumented people the only way to work or pay taxes has been via false, borrowed or fabricated SSNs, which can be supplied or trafficked by third parties or rings that trade documents and numbers [7] [5]. Those wages are credited to the SSN owner, not the person using the number, creating mismatches that show up in SSA systems [5].
3. System gaps that enable fraud: missing death records and mismatches
The SSA Inspector General audited missing death information in SSA files, which complicates detecting improper payments and identity misuse; the White House memo cites that missing death data obstructs fraud detection across agencies [2]. Separate reporting highlights the Earnings Suspense File ballooning as wages tied to names/SSNs that don’t match official records increased, which investigators have historically linked in part to undocumented-work reporting [6].
4. What fraudsters do with obtained SSNs: employment, benefits and services
Stolen or fake SSNs are used to obtain jobs, pay taxes, enroll in employer-sponsored health care, or try to claim benefits; ICE described cases where stolen SSNs were used to unlawfully obtain wages, healthcare and employment authorization [1]. Analysts note two common fraud types: stealing/creating SSNs to work, and using a fraudulent name/SSN to claim benefits—though the latter faces legal and administrative hurdles [8].
5. Does this mean undocumented immigrants are collecting Social Security benefits? Competing evidence
Government and investigative reporting show disagreement. Some officials and advocates allege increases in SSNs given to migrants and worry about improper access [3] [9]. But other reporting emphasizes there is no evidence undocumented immigrants are broadly collecting Social Security benefits; the SSA Inspector General’s work and reporting cited an overall fraud rate under 1% and notes undocumented workers often pay into the system without being eligible to draw benefits under someone else’s SSN [4] [5]. Fact-checking pieces also dispute broad claims that “millions” are committing SSN fraud to get benefits [10].
6. Law enforcement findings vs. political claims: context and agendas
Enforcement actions such as ICE’s worksite operation document concrete identity-theft networks and real victims [1]. At the same time, policy memos and political fact sheets frame SSN misuse as part of broader immigration-policy arguments; the White House fact sheet and other partisan sources cite estimates (e.g., from advocacy groups) about stolen IDs and SSNs that feed policy proposals [9] [2]. Watchdogs caution that some political claims overstate scope relative to SSA’s measured fraud rates [4] [10].
7. What detection and prevention focus on now
Agencies and proposals concentrate on improving data quality (for example, adding death records), expanding fraud prosecutors and tightening SSA processes to detect mismatches and identity theft [2]. Experts and auditors emphasize that fixing data gaps in SSA databases and cross-agency cooperation are central to reducing opportunities exploited by rings [2] [6].
Limitations: available sources document methods (identity theft, stolen/fabricated numbers, borrowed SSNs) and give examples and system vulnerabilities, but they do not provide a comprehensive, quantified breakdown of how all fraud rings operate or exact prevalence beyond cited investigations and audits; some estimates cited come from advocacy groups or political documents [9] [6].