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What are the most common types of social security fraud?
Executive summary
Most reporting and official data show that the most common Social Security–related frauds fall into two broad groups: scams that impersonate the SSA to steal personal data and benefits-administration frauds like misuse of payees, false statements to obtain benefits, and SSN misuse (false personation and SSN misuse together made up about half of OIG allegations in FY2024) [1]. Consumer-security guides add that phone/email/text “impersonation” scams and identity-theft uses of SSNs are the most frequent ways criminals convert or redirect benefits [2] [3].
1. Impersonation and “technique” scams: the front line of theft
Scammers most often pretend to be SSA or government officials by phone, text, email, or mail to frighten or trick people into giving personal information, paying or transferring money, or clicking malicious links; government and consumer guides identify phone/email/text imposters as the single most common delivery method for Social Security scams [2] [4]. Nonprofit and commercial consumer-education pieces report large dollar losses from these approaches and warn that threating language, requests for immediate payment, or demands for secrecy are red flags [5] [6].
2. SSN misuse and identity theft: the underlying currency
The Social Security number itself is a primary target because stolen SSNs enable a wide array of frauds — false tax returns, new accounts, or fraudulent benefit claims — and SSA/OIG reporting singles out SSN misuse as a top allegation category (23.9% of OIG allegations in FY2024) [1]. Industry guides explain that criminals use SSNs to open accounts and to apply for benefits they aren’t entitled to, disrupting victims’ future claims and credit [7] [8].
3. False personation and false statements on claims: fraud in applications
The Congressional Research Service and SSA OIG data show “false personation” (claiming another identity or impersonating someone) accounted for roughly 26.7% of allegations — making it one of the single largest types of reported wrongdoing — while statutes and DOJ guidance emphasize that making false statements to obtain benefits is criminal under federal law [1] [9]. Investopedia and other explainers list lying on benefit applications (about marital, parental status, employment, or disability) as a core form of program fraud [8].
4. Representative payee misuse and deceased-payee collection: abuse inside the system
SSA assigns representative payees for beneficiaries who cannot manage money; OIG investigations commonly find misuse of those payments (representative payee misuse, deceased payee fraud) where money meant for the beneficiary is redirected or spent improperly, a recurring enforcement category in OIG materials [10]. Consumer guides and SSA fraud pages stress that paying or managing benefits for another person can become fraud when funds are converted for other uses [11] [7].
5. Improper payments vs. deliberate fraud: measurement and ambiguity
Analysts caution that estimating “fraud” is complicated because SSA reports a larger umbrella category called “improper payments” that mixes honest error, administrative mistakes, and intentional fraud; Investopedia and CRS note monetary estimates are therefore hard to pin down and not all improper payments are fraudulent [8] [12]. That difference matters for policy: prevention tactics for innocent errors differ from criminal investigations and prosecutions [12].
6. Enforcement, law, and penalties: tools on paper and in practice
Federal law criminalizes false statements, benefit conversion, and SSN misuse, and the DOJ encourages prosecution of SSN violations when appropriate; SSA OIG may also seek civil monetary penalties or refer cases to prosecutors [9] [10]. CRS documents detail the large volume of OIG allegations (332,927 in FY2024) and the pathways from allegation to prosecution or civil action — but also note that not every allegation leads to criminal charges [12] [1].
7. Who is most affected and where: age and geography notes
Consumer reports and identity-protection firms say older adults (especially retirees and those 70–84) report substantial average losses and are frequent targets of SSA impersonation scams; certain states show higher reported incidences of benefits fraud, though national OIG data organize allegations by fraud type rather than providing a definitive per-state ranking in the sources provided [3] [13]. Available sources do not mention a comprehensive, up-to-date per-state ranking beyond consumer-source claims (not found in current reporting).
8. What citizens should know and do: reporting and prevention
SSA and OIG guidance instruct people to never give SSNs or banking information to unsolicited contacts, to be skeptical of threats or payment demands, and to report suspected fraud to the OIG or SSA immediately; the OIG’s reporting portal and SSA scam pages provide resources and steps for victims and witnesses [4] [14]. Consumer educators add credit freezes, fraud alerts, and monitoring as practical defensive steps after suspected identity compromise [5] [6].
Limitations and competing viewpoints: official OIG/SSA materials focus on categories and legal remedies [10] [14], while consumer firms and finance outlets emphasize the day-to-day scam tactics and loss figures — both perspectives are accurate but measure different things (allegations vs. consumer losses), so reconcile counts carefully when citing totals [3] [12].