Social Security Disability Benefits Fraud

Submitted by Daniel on

Social Security Disability is a great benefit to those who truly need assistance due to a severe medical condition that prevents them from working for at least a year. However, sometimes people violate the law and fabricate a medical condition. Detecting a fraud in the Social Security system is a challenging process, but it is one that is necessary in order to maintain the integrity of the program. Determining whether someone is trying to take advantage of the system can be a difficult task, so before reporting an alleged fraud, consider the long journey ahead and all that goes into pinpointing fraudulent activity.

If you suspect someone is violating the law and is, in fact, fraudulently collecting disability benefits:

  • You need to know the reason why the person has been approved for benefits. If you are unable to determine this, research will need to be conducted to determine the truth before accusations are made.
  • You need to be aware that even though you see this person, you may not fully understand how the person’s impairment causes difficulties in daily living.
  • Some people receiving Social Security Disability suffer from mental or psychological disorders; these are not often easy to pinpoint as an outsider, and it may be difficult to judge how these conditions could interrupt the daily activities.

Typically you would have to know someone quite well in order to determine whether or not he or she is taking advantage of the system. Making strong accusations about someone receiving disability benefits is touchy ground, and something that you would not want to do lightly. When in doubt, do not be afraid to ask questions and look into the actions of the person. This can greatly help you determine where the truth lies. If you do still truly suspect someone of committing a fraudulent act, you should consider reporting that individual.

  • You should begin by contacting the toll-free Social Security Administration Fraud Hotline at (800) 269-0271.
  • Remember to provide as much information as you can. This includes the name, address, birth date, phone numbers, and Social Security number (if you know it) of the person suspected of committing fraud. The more information you provide, the sooner the investigation can begin. You should explain in detail to the SSA exactly in what type of fraudulent activity that you suspect this person to be involved.
  • Do not report anything that you do not know for sure. There are penalties for reporting false information, so stick with the facts.
  • Be certain that you understand the situation surrounding the person’s disability. Work may complicate the person’s condition more than you know. Some people are unable to work because they have to be medicated frequently throughout the day. There are also many individuals on disability who have to make trips to the hospital on a weekly or even daily basis. Other individuals may suffer from a psychological or mental condition that makes them appear quite normal, but they may, in reality, be struggling deeply on the inside. You must be fully aware of their circumstances to be able to judge if they are fraudulently collecting benefits.
  • If you feel uncomfortable telephoning regarding your concerns, you can complete an online fraud reporting form, or mail in your findings to the Fraud Hotline at:

Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

When working properly, the Social Security Disability program is a wonderful asset. To those individuals suffering and unable to work, or even waiting out the last stage of their lives, it is often a much-needed benefit. Unfortunately, some people take advantage of a good thing and use it improperly, as is the case with fraudulent behavior. While reporting this kind of activity is important, it is also a serious leap to take. Before you report your suspicions, you should realize that the most important thing is to know all the facts, and to move forward only if you are certain you have a definite case of fraudulent conduct.

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Blog comments

Christina (not verified)

I know some one that is

I know some one that is recieving ss benifits in texas for her disabled brother who lives in Ga and she does not pay for anything for the child. The child is in the care of the father and she has even stated that she only gets his money because i helps her pay for her illegally purchased prescription meds and alcohol; is this something i can report as fraud?

Fri, 04/22/2016 - 16:58 Permalink
Ashley (not verified)

Would this situation be

Would this situation be considered fraud?
My little sister is disabled and gets social security, her money is deposited directly into my dads account (she is underage, only 10 years old) but my dad has abandoned my sister with his ex girlfriend 7 months ago and he has not come back to get her, he still collects my sisters money and non of it goes to her or her care in anyway. CPS is even involved because he has left her and does not take care of her and his girlfriend does not have custody. Is he still allowed to collect her money and spend it even tho she is no longer with him or living with him?

Fri, 04/22/2016 - 19:10 Permalink
Bryan

In reply to by Ashley (not verified)

Hi Ashley,

Hi Ashley,
I'm sorry to hear about that! It seems like a difficult situation and I hope for the best. You an absolutely contact the SSA about this, those benefits are intended for your little sister and should go to someone who would use those benefits to help your sister. The first thing I would do is to get another representative payee for your sister. You can do this at your local SSA office and you can find a listing of them here:
http://www.disability-benefits-help.org/social-security-disability-loca…

Mon, 04/25/2016 - 14:25 Permalink
Anonymous (not verified)

In reply to by Bryan

Problem is he technically

Problem is he technically still has custody as of right now, and there is really no one else to collect that for her right now as the ex girlfriend that currently has them cannot keep them and I live in another town. He is also collects food stamps for her and my brother (neither of them are with him) and he doesn't use that on them either. Doesn't seem right that he should be able to continue doing this. How can I stop him from getting that money? He is a drug addict and we can only assume that's where these kids money goes.

Mon, 04/25/2016 - 15:06 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
You do not need to have custody to be a representative payee, all you need to be is a person that has an interest in the well being of the person receiving benefits. The payee does not have to live with them, but would be someone who can and will use that for the child's benefit. As far as the food stamps are concerned, since that is a state administered program, I would contact the agency or organization that administers food stamps in your state and inform them of that as well.

Mon, 04/25/2016 - 16:40 Permalink
Sterling (not verified)

What if someone is running an

What if someone is running an illegal construction doing pole buildings. Putting sheets on roofs and other very hard work, receiving lump somes of cash money for this who is supposed to be disabled, unable to work & all while collecting a monthly disability check every month??

Sun, 04/24/2016 - 13:22 Permalink
lynne (not verified)

I collect ssdi for mental

I collect ssdi for mental health reasons and I have a "friend" who I suspect is planning on trying to report me and claim that I am committing fraud. This friend recently asked me for a loan which I said no to and she is very vindictive and has told me stories of things she has done in the past to people that have made her angry. My question is, if someone reports someone for vindictive reasons (my disability is definitely justified) can actions be taken against them?

Sun, 04/24/2016 - 13:42 Permalink
Bryan

In reply to by lynne (not verified)

Hi Lynne,

Hi Lynne,
Any actions against them would depend on if they provided their information to the SSA on the report.

Mon, 04/25/2016 - 14:16 Permalink
Annette (not verified)

I know a guy that draws

I know a guy that draws disability for being legally blind. He works on vehicles as rides 4 wheelers all of the time. My gripe is that I work every day and my tax dollars are supporting him, allowing him to stay in bed all day, go hunting and fishing any time he chooses. Seems to me if he can work on vehicles he could get a real job doing so.

Sun, 04/24/2016 - 20:56 Permalink
Bryan

In reply to by Annette (not verified)

Hi Annette,

Hi Annette,
Unless he is making money from hunting, fishing, or working on his vehicles, he may not be committing fraud.

Mon, 04/25/2016 - 14:30 Permalink
Keegan (not verified)

I know of someone who is

I know of someone who is working under the table for his dad and also is a drug user. He outs spring his drug use and his girlfriend's. Can something be done about this?

Sun, 04/24/2016 - 21:31 Permalink
james brown (not verified)

I reported someone to social

I reported someone to social security fraud in Brooklyn new York 11206 about the person that never work a day in she life and gets $800 a month plus $200 in food stamp pays $222 a month for rent did bankruptcy once and now owns $10.000 in credit cards which are not being pay for and the social security office at 111 myrtle ave call her in and over look a extra $350 a month she gets put into her bank account summary every month so she's frauding the gov and there doing nothing about it or she sold them a crying story but someday they'll know who gives her that $350 a month then am going to see what they are going to do it don't pay to report anyone lets all scam the govment

Tue, 04/26/2016 - 09:27 Permalink
Cindy (not verified)

How about if someone is

How about if someone is receiving benefits for a physical disability, but is able to build and drive mud trucks a few times a month, ride 4 wheelers on long rides and has over 15 boats their working on to make money... Should they be getting benefits, sounds like they can work to me... Oh has 4 mud trucks also

Tue, 04/26/2016 - 13:23 Permalink
Deanna

In reply to by Cindy (not verified)

Hi Cindy,

Hi Cindy,
It would depend on the disability for which she was approved. If she was approved for depression or bipolar disorder for example, she would physically be perfectly able to ride on a four wheeler.

Tue, 04/26/2016 - 13:45 Permalink
Cindy (not verified)

In reply to by Deanna

No this person is getting

No this person is getting disability for A supposably physical impairment, driving a mud truck at a race takes a lot of ability, your driving a truck that is ran on nitrous, this person races many times a month, puts pics on FB

Wed, 04/27/2016 - 07:00 Permalink
Bryan

In reply to by Cindy (not verified)

Hi Cindy,

Hi Cindy,
It's possible that their disability, while physical, might not stop them from driving or racing. However, if you truly believe that they are committing fraud, you can report them here:
http://oig.ssa.gov/report

Wed, 04/27/2016 - 11:32 Permalink
Patricia jones (not verified)

The man who lives next door

The man who lives next door to us recives ssidiability, has a handicapped parking sticker hanging in the window of his truck,yet he is always moving large furniture and appliances in and out of the house,mowing the yard with a push mower,washing his truck,driving steaks up in the ground, he gets around just fine won't get a job,but able to roam around picking up things off the side of the road brings them home and either sells them or puts them in his house ,but always doing things that I would think a dis abled person can't do,yet he lives off the government, while we have to go to work everyday, his disability is not mental although he has a sewer for a mouth! this should be looked into

Tue, 04/26/2016 - 19:42 Permalink
Bryan

In reply to by Patricia jones (not verified)

Hi Patricia,

Hi Patricia,
We are not affiliated with the SSA.
Your neighbor may be disabled in a way that is not visible to the naked eye or isn't apparent when you talk to him because disability comes in many different forms. However, making an income without reporting it to the SSA is fraud.

Wed, 04/27/2016 - 11:35 Permalink
Sue (not verified)

Is it fraud if someone is

Is it fraud if someone is getting disability benefits for a back problem and is shown on a Facebook page rock climbing and driving a race car?

Thu, 04/28/2016 - 11:13 Permalink
Deb (not verified)

I know someone that is

I know someone that is receiving disability checks and does not work because he has severe asthma. He smokes all the time and I have pictures that prove it. Should I report him?

Thu, 04/28/2016 - 13:48 Permalink
Lester (not verified)

A co-worker of mine makes a

A co-worker of mine makes a point to let everyone know that he is on disability from the state of Massachusetts. He injured his shoulder working as a sanitation worker. The company I work for in the application asks if you are able to lift 40 to 50 lbs daily. Now his claim is he injured it again and injured his back also. Losers like him need to be investigated more often. My father had someone check on him periodically throughout the year. My father lost his entire knee due to an accident at work. The government needs to police the system better.

Thu, 04/28/2016 - 17:39 Permalink
Manny (not verified)

If someone is psychiatrically

If someone is psychiatrically disabled..receiving SSD..someone falsely reports they are well...is it right for Social Security to stop their check without making contact with that recipient?

Fri, 04/29/2016 - 15:28 Permalink
Gertrude obanner (not verified)

My babydaddy gets his ssi and

My babydaddy gets his ssi and buys illegal drugs with it to sale in the streets drugs such as cigarettes and marijuana and I have pictures and videos of him how can I report that

Sat, 04/30/2016 - 08:42 Permalink
Gertrude obanner (not verified)

My babydaddy gets his ssi and

My babydaddy gets his ssi and buys illegal drugs with it to sale in the streets drugs such as cigarettes and marijuana and I have pictures and videos of him how can I report that

Sat, 04/30/2016 - 08:44 Permalink
Lewis (not verified)

I know of someone who is

I know of someone who is currently collecting benefits and also received a huge settlement from workers comp for his back. he has owned a construction company, remodeled his house by himself and has done block work /yard work which most younger folks would not take on themselves. He also uses his prescription drugs to get high, not because he needs them. He is a VERY good actor. Is it reportable? worth reporting if he has the ability to convince SSA he really is unable to work?

Sat, 04/30/2016 - 16:32 Permalink
Bryan

In reply to by Lewis (not verified)

Hi Lewis,

Hi Lewis,
This person may not be committing fraud as it is possible to work while receiving benefits, and not every disability is visible to the naked eye.

Mon, 05/02/2016 - 09:59 Permalink
Anonymous (not verified)

I know someone trying to

I know someone trying to apply for disablity that been in and out of rehabilitation for drugs every time he work he goes back to a rehab

Sun, 05/01/2016 - 16:27 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
It may not be fraud for that person to apply for disability benefits if they are addicted to drugs or alcohol, they may possibly have an underlying mental condition that is disabling that drives them to drink/abuse drugs.

Mon, 05/02/2016 - 10:01 Permalink
Sarah (not verified)

I know someone collecting

I know someone collecting Social Security disability due a visual impaired. However she is able to perform activities such as sewing, crocheting, and even works under the table as a photographer. I often wonder how someone with a visual impairment is able to perform these intricate activities, but yet is unable to work? Would this be considered fraud?

Sun, 05/01/2016 - 22:18 Permalink
Bryan

In reply to by Sarah (not verified)

Hi Sarah,

Hi Sarah,
Visual impairment comes in many forms, some that may prevent a person from working but not from performing activities that would require some vision. It may not be fraud for that reason.

Mon, 05/02/2016 - 10:03 Permalink
Amanda (not verified)

Hi I know someone receiving

Hi I know someone receiving benefits for her disabled daughter in one state but was living in another state. She stayed at my house and when she got her check she spent the whole thing on her and her boyfriend. Didn't buy the little girl a thing. Doesn't get the little girl the medical attention she needs nothing. She beats the little girl and uses her as a paycheck. What should I do. Before I get negative comments dhs has been contacted about the abuse just don't feel this individual should be getting the check seeing as it's not going to the child

Mon, 05/02/2016 - 17:19 Permalink
Gabe jr (not verified)

What if they are on SSI and

What if they are on SSI and have 10 rentals and get there rent in cash and received over 35k for adopting some kids and does all repairs and maintenance on rentals

Mon, 05/02/2016 - 20:05 Permalink
Anne (not verified)

I know someone that gets ssi

I know someone that gets ssi for depression and anxiety but I know it's not true and as I'm writing this there in Las Vegas gambling and partying

Mon, 05/02/2016 - 21:47 Permalink
Constance. (not verified)

If you made a fraud claim

If you made a fraud claim annomously. Will the person know wat was said??

Tue, 05/03/2016 - 02:26 Permalink
Bryan

In reply to by Constance. (not verified)

Hi Constance,

Hi Constance,
If you make an anonymous fraud report, there would be no information on it that would link the report back to you.

Tue, 05/03/2016 - 09:15 Permalink
Becs blog (not verified)

So how does SSI investigate

So how does SSI investigate someone who is receiving alimony 1700 a month and is also receiving 700 a month from SSI disability if alimony is not filed under social security and this person is going to receive 17000.00 cash from sale of a home. I just don't understand how this happens and she also receives food stamps drives a 2015 Cherokee, reporting should be completely free of reprimand and anonymous.

Tue, 05/03/2016 - 14:25 Permalink
Bryan

In reply to by Becs blog (not verified)

Hi Becs,

Hi Becs,
That does sound like that person may be committing fraud.
you can make a report anonymously, and I think the SSA may be interested in the information you would have. Additionally, the SSA would not reprimand anyone for making a report in good faith. You can file a report here:

http://oig.ssa.gov/report

Tue, 05/03/2016 - 15:37 Permalink
*l%5569 (not verified)

If someone receiving

If someone receiving disability says they live with a friend but are not is that fraud? And if they are married but kept their maiden name and did not report,or that her husband has a conviction of child molestation?? And if someone is to be working as a provider gets payed by SS but not really doing hours just signing time card gets payed and gives the money to the person she is doing the providing for ? Is any of this considered fraud ?

Wed, 05/04/2016 - 10:54 Permalink
Bryan

In reply to by *l%5569 (not verified)

Hi there,

Hi there,
To answer your questions, in order:
1) It may not be fraud if they did not misrepresent their living situation to the SSA.
2) It may be fraud if they did not accurately report their marital status to the SSA. Also, prior convictions may not make someone ineligible for SSI or SSDI benefits.
3) That sounds quite a bit like fraud, and it may be.

Hope that helps!

Wed, 05/04/2016 - 11:15 Permalink

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