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.

Additional Resources

Blog comments

Eric

In reply to by Molly (not verified)

Hi Molly,

Hi Molly,

Maybe, you could need additional information though. You can call the SSA directly and leave a report 1-800-772-1213.

-Eric

Thu, 06/29/2017 - 09:20 Permalink
Teresa (not verified)

I just have a question for

I just have a question for someone. I'm my exhusbands Power of Attorney so before I ask this just know there is zero drama. He is currently on disability for a back issue (he does not have) however he was given disability - anyway, he is taking his entire disability check and spending on meth. He is homeless and has nothing but the 3rd of the month he buys his drugs. He is on probation and parole (served a 9 month sentence) - my question is, is our system so broken this is ok? I know they don't drug test to get the disability but how can this happen? Is there nothing I or anyone can do about this?

Thu, 06/29/2017 - 19:10 Permalink
Deb (not verified)

I have a cousin who may be

I have a cousin who may be collecting benefits while earning money from a home business. She and her husband have started . They grow organic fruits and vegetables and seem to have quite a business going. She supposedly collects benefits because of Fibromialgia. She does all of the canning and baking for the business and works in the greenhouse as well. The business may be in her husbands name I'm not sure. But I think if she is able to work at all she should not be collecting any amount of disability. A few years ago she was asking all of us to pray that she would be approved for disability.

Thu, 06/29/2017 - 21:49 Permalink
Sherri (not verified)

What if the disabled person

What if the disabled person had terminal illness and is now deceased but a family member has the the deceased Soc Sec payment bank card, the PIN number and is spending the money issed by Soc Sec? More funds expected to be stolen on next and future deposit dates.

Fri, 06/30/2017 - 20:37 Permalink
Eric

In reply to by Sherri (not verified)

Hi Sherri,

Hi Sherri,

If you suspect fraud you can go the the SSA's website and fill out a report or call 1-800-772-1213.

-Eric

Wed, 07/05/2017 - 09:18 Permalink
Carol (not verified)

I know two people in their 50

I know two people in their 50', who have collected disability for many years, yet they are able to go to Jamaica, go boating, horseback riding in the ocean, swim with the dolphins, & post pics on social media. They mostly stay high smoking pot, taking pain pills, & drinking. Do not look disabled to me! Another friend who collects it, but is able to go deer hunting, work on classic cars, go to car shows, etc. Again, what is wrong with this picture. Then then I have a friend who is totally disabled by MS who had to fight tooth & nail to be approved. What is wrong with system.

Sat, 07/01/2017 - 09:18 Permalink
Eric

In reply to by Carol (not verified)

Hi Carol,

Hi Carol,

Sorry to hear that, but unfortunately fraud does sometimes occur. You can call the SSA and leave a report if you'd like: 1-800-772-1213/

-Eric

Wed, 07/05/2017 - 09:20 Permalink
brenda (not verified)

I know some one who drawed

I know some one who drawed ssi for the last three years and worked a full time job too. she is supposed to ilitaret. I know she has trouble spelling but she was making 2000 month from her job and 736 from ssi. and now she draws surviver benefits and ssi is suspended. she still gets her medicade. I just have trouble scraping to pay my bills 600 a month. i realy wish she would have been caught.

Sat, 07/01/2017 - 11:56 Permalink
Bryan

In reply to by brenda (not verified)

Hi Brenda,

Hi Brenda,
You may want to report any suspected fraud to the SSA here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Wed, 07/05/2017 - 09:21 Permalink
shelley (not verified)

I know of a mom who doesnt

I know of a mom who doesnt have custody of her children and has filed disability in Paris Texas for her children... they have her flagged and she has already has gotten paid over 5000 dollars. When does she get prosecuted.

Sun, 07/02/2017 - 15:43 Permalink
Bryan

In reply to by shelley (not verified)

Hi Shelley,

Hi Shelley,
Generally these sorts of cases are prosecuted by the SSA, you may want to contact your local office regarding this. You can also send a letter to the SSA regarding this here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Wed, 07/05/2017 - 09:23 Permalink
Anonymous (not verified)

If you don't have proof

If you don't have proof of the fraud in writing BC you know about it can you still report it

Mon, 07/03/2017 - 18:46 Permalink
Anonymous and … (not verified)

This is a second comment with

This is a second comment with spelling corrections.

I just recently lived with a person who has been receiving disabilty benefits for a supposed injury or medical condition since 2008. He claims he cannot work because of a back injury, his lupus, and supposed chromes decease. We have traveled to many places like Disney World and been on the rollercoasters. We have gone biking and hiking through the hills of Mackinaw Island and The Smokey Mountains. He is a mechanic/ engineer and has worked on multiple machinery, vehicles in which I have photos to prove it. During the three year period while I share a home with this person did he ever have a "lupus or chromes" flair up. I am a lost because he hoards all of his pain medication in great sums. Not knowing what the legal amount is to have narcotic medication in great sums I was forced to inform the authorities. But I am not sure what to do about this disability fraud. For someone to receive disability benefits for a condition he is claiming is complete obsurd. Any feedback or recommendations any of you have please reach out to me.

Mon, 07/03/2017 - 20:45 Permalink
Bryan

In reply to by Anonymous and … (not verified)

Hi there,

Hi there,
You may want to contact your local SSA office regarding this, you can also send a letter to them here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Wed, 07/05/2017 - 09:24 Permalink
Anonymous (not verified)

What kind of penalty for

What kind of penalty for disability fraud plus good stamp,Medicare if person has done for 21 years,and is company they worked for held liable knowing this information

Mon, 07/03/2017 - 22:00 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
They may likely owe the money they had received to the SSA, and the office in your state that handles food stamps. It's unlikely that the company that they worked for would be held liable unless they helped this person conceal any benefits fraud that had committed, rather than just knowing that a person is receiving benefits.

Wed, 07/05/2017 - 09:27 Permalink
Anonymous (not verified)

I know somebody letting her

I know somebody letting her friends used her SSN for 10 years now,and that person owns the SSN works off the book,and earn almost 200 a day.theyre living a life!

Tue, 07/04/2017 - 10:12 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
You may want to contact your local law enforcement office regarding this as this situation appears to be a case of stolen identity.

Wed, 07/05/2017 - 09:18 Permalink
Theresa (not verified)

I know of a guy that's

I know of a guy that's claiming 100% disability and yet he works 60 hours a week and the company he works for pays him under the table without holding out any taxes. He brings home about 695.00 a WEEK, receives food stamps and is on Medicaid (free meds, free doctor visits). He's living large off the expense of the government. SMH

Tue, 07/04/2017 - 10:51 Permalink
Bryan

In reply to by Theresa (not verified)

Hi Theresa,

Hi Theresa,
You may want to contact the SSA about this, you can do so by sending them a letter with any evidence that you have here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Wed, 07/05/2017 - 09:19 Permalink
Rachael (not verified)

I know someone who has two

I know someone who has two separate birth certificates and social security cards with two separate names. She is working under one name and collecting disability under the other. Do I call the same number to report this?

Tue, 07/04/2017 - 23:51 Permalink
Bill (not verified)

Someone has been sentenced

Someone has been sentenced for 3 years in jail, will they're benefits automatically stop

Wed, 07/05/2017 - 10:31 Permalink
Bryan

In reply to by Bill (not verified)

Hi Bill,

Hi Bill,
They would, generally benefits would continue for any eligible dependents in that situation, however.

Wed, 07/05/2017 - 11:54 Permalink
Troy (not verified)

My brother passed away about

My brother passed away about two years ago. The mother of his two kids is having a hard time and now in trouble with the law. My wife & I now have the two children. We only have POA on the children. We have had them for just over two months. Times and getting hard as we have 3 of our own.

My wife asks her to turn the SSI for the Children over to us. because the expense is getting to tap us out. One of the children and physically and mentally handicap as well.
The mother's response was I'm struggling and what does finance have anything to do with you having my kids. I'm not sure what to do next. andy advice would be great!

Wed, 07/05/2017 - 12:44 Permalink
Bryan

In reply to by Troy (not verified)

Hi Troy,

Hi Troy,
You may want to contact the SSA to have her payee status re-assigned to you, as those benefits are intended for the children's care and upkeep.

Thu, 07/06/2017 - 09:21 Permalink
Benjamin Sisko (not verified)

I would like to know how to

I would like to know how to report the United States government for fraud due to the fact that we, the American people are being robbed by our government every time we pay to taxes. When we work for a wage salary, that is money earned for one's self to provide for one's self or one's family. Instead, our great government commits robbery on it's own people in the form of taxes. If we refuse to pay these taxes, we the people get penalized with fines or jail time...so we either get robbed or get with the program. Soon, most people won't even be able to get SSI even if they're eligible for it because of how dishonest our government is. This country was built on the blood, sweat and tears of African slaves, this land was stolen from the native Americans who majority were killed off...and yet our government talks about who's committing fraud? Give me a break, I wonder if the government would lock up all Americans who refused to pay taxes. Our so-called founding fathers never said anything about taxing it's own people, that's why they escaped England because they didn't believe in paying taxes to a king who wasn't doing anything for them. They had enough and they did something about it, which was the result of the American revolutionary war. It's in your so-called history books, yet this government does what it wants, when it wants. Food for thought...you do the dishes!

Wed, 07/05/2017 - 16:12 Permalink
Eric

In reply to by Benjamin Sisko (not verified)

Hi Benjamin,

Hi Benjamin,

Getting taxes taken out of our hard earned checks can stink sometimes. But our taxes go fund things that we really need in society such as education, infrastructure, law enforcement, healthcare, etc. Thank you for sharing, I do see your point though.

-Eric

Wed, 07/05/2017 - 16:48 Permalink
Sonya (not verified)

I want to know more if I have

I want to know more if I have something on a person. She collects disability for a foot surgery she had and a minor diagnosis needing to wear a boot and prescribed narcotics. The problem is she walks EVERYWHERE not having a car and was under the table with proof babysitting kids which she had to be up on her feet. She also lives in low income housing which she also never reported her earnings but there is actual legal documentation with the state she was in fact babysitting under the table. This person also got retro money from her deceased husbands SSI adding up to 6 years and a little over $20,000 that she found a way to hide from housing so she didn't have to retro pay the % back but if looked into can EASILY be found. Because of her "disability" she was able to get a 3 bedroom house from low income with a ramp she doesn't need, has her 23 year healthy son living with her and her grandson who also shouldn't be. Thoughts?

Wed, 07/05/2017 - 23:30 Permalink
No name (not verified)

I know someone who is

I know someone who is supporting her father's cable t.v. bill, an ex. Boy friend phone bill, her dad and mothers phone bill by the ssi and child support. Your gray area states if not sure, usually means can't prove!!! What do you do??

Fri, 07/07/2017 - 21:20 Permalink
Eric

In reply to by No name (not verified)

Hello,

Hello,

I would see if you could get much proof as possible, such as photographs or documents. The more evidence you have the better.

-Eric

Mon, 07/10/2017 - 09:00 Permalink
Ms. Canhandle (not verified)

What if you know a couple

What if you know a couple that lied and said they were divorced and not living together so they both could get disablity benefits. And they are in fact still living together and gathering 800$ a piece a month..

Sun, 07/09/2017 - 21:05 Permalink
Canhandle (not verified)

My dad is in his early 50s

My dad is in his early 50s and receives disability benefits because his liver and kidneys are failing. But yet he is buying a 30pk of beer every wk and a half gallon of whiskey every two wks.. if he is not gonna stop drinking why should he be allowed to get benefits?

Sun, 07/09/2017 - 21:12 Permalink
Bryan

In reply to by Canhandle (not verified)

Hi there,

Hi there,
You may want to contact the SSA regarding this, you can send a letter with any evidence of fraud here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Mon, 07/10/2017 - 09:21 Permalink
Canhandle (not verified)

My mother get ssi benefits

My mother get ssi benefits for mental health problems but she is just playing the system. She says she has social anxiety but she is always going to tball games, movies, basketball games soccer games and seems just fine. She lies to doctors about falling and things just to get pain pills. She is medicated so bad she can talk or function most of the time. She doesn't shower or clean house. No personal hygiene at all. She is not disabled she is lazy...plz tell me why this is going un noticed

Sun, 07/09/2017 - 21:18 Permalink
Bryan

In reply to by Canhandle (not verified)

Hi there,

Hi there,
You may want to contact the SSA regarding this, you can call the Social Security Administration Fraud Hotline at (800) 269-0271.

Mon, 07/10/2017 - 09:23 Permalink
Ashley l (not verified)

I have a friend and her

I have a friend and her neighbor gets disability for her kids that have autism and she gets the money and sends it to her country which is el Salvador can she get in trouble for that she sends like 2000 a month over there we think it's the amount she gets for her kids

Tue, 07/11/2017 - 15:14 Permalink
Eric

In reply to by Ashley l (not verified)

Hi Ashley,

Hi Ashley,

That could be considered fraud. The more evidence you have the better. You can call the SSA and leave a report: 1-800-772-1213.

-Eric

Wed, 07/12/2017 - 09:22 Permalink
Amanda. (not verified)

Riddle me this, before I

Riddle me this, before I decide to make this call. I have contemplated this for over 4 months. I nearly got killed by my ex that was declared mentally unfit, due to him not taking a single lithium, selling his adderall then abusing the trazadone when he would come down off of his METH highs. YEAH, needless to say that was the most horrific 4 months of my life. I now take care of my Uncle whom is highly in need of SSI benefits. He is truly ill, so I am not sure if I should play God, but that is wrong . The man is getting away with not only being a severe street dealing thug with his SSI given prescriptions, but also spending that SSI on nothing but STREET DRUGS. Oh, and heres the punchline.......he technically resides in GEORGIA. Uses his grandmothers address right down the road in good ole Tennessee, Tennessee is where he receives the benefits. I am open to constructive opinions! Thanks a ton. My heart truly goes out to those in need and get denied, trust me when I say it was truly life altering when you get to witness it and they keep walking....scot free :(

Wed, 07/12/2017 - 06:59 Permalink
Eric

In reply to by Amanda. (not verified)

Hi Amanda,

Hi Amanda,

I am so sorry to hear that, but thank you for sharing your story. Unfortunately Social Security fraud can occur sometimes.

Best Wishes,
Eric

Wed, 07/12/2017 - 14:01 Permalink
carmen (not verified)

I have a friend whose

I have a friend whose boyfriend is on disability for a very serious TBI. He is 24 years old and currently lives with an aunt who takes his disability check and does not allow him access to the money. She tells him it goes toward his medical bills but he has no confirmation of this. In addition, she refuses to allow his girlfriend to visit him or pick him up to spend time together. This young man's therapist has recommended the two spend time together because she is good for him, she's been by his side since day one in the hospital, and she helps his memory and cognitive function. However, the aunts are doing whatever they can to keep them apart, fearing that she will make him realize they are taking advantage of him, and their extra source of income will disappear. His girlfriend just wants to spend time with him without the fear of getting arrested for kidnapping (which they have threatened her with). To my knowledge they have no court order granting them guardianship over him, and as he is an adult he should be free to do as he pleases. My question is, can anything be done to ensure his relatives are not fraudulently taking/using his disability checks? Any help or suggestions would be greatly appreciated.

Wed, 07/12/2017 - 11:34 Permalink
Eric

In reply to by carmen (not verified)

Hi Carmen,

Hi Carmen,

I would recommend gathering as much evidence as you (or he) can, in this case any receipts using his disability benefits. The more evidence there is the better your chances are of winning your case. Wishing you and your friend nothing but the best.

-Eric

Wed, 07/12/2017 - 13:59 Permalink
carmen (not verified)

In reply to by Eric

thanks so much for your kind

thanks so much for your kind and prompt response! I was kinda hoping you would suggest just opening a can of whoop@$$ on them, but I imagine that's not in the SSA glossary. thanks anyway tho ;-)

Wed, 07/12/2017 - 16:18 Permalink
Lisa (not verified)

I know someone who collects

I know someone who collects social security yet has a buy and sell car business making his income far above his allowance. Is that reportable?

Fri, 07/14/2017 - 21:16 Permalink
Eric

In reply to by Lisa (not verified)

Hi Lisa,

Hi Lisa,

I can't say for sure, but the more physical evidence you have, the better your chances are.

Best Wishes,
Eric

Mon, 07/17/2017 - 09:04 Permalink

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