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

Michelle (not verified)

I know someone who revives

I know someone who revives disability for two of her children and had a live in boyfriend who helps pay the bills and such. And she pays some but the money is not only used to pay bills it's spent on other things that are not ment for the children. And she never spends the extra money on the kids like clothing and food. What can I do

Thu, 08/04/2016 - 18:51 Permalink
Kim (not verified)

Is it illegal to spend all

Is it illegal to spend all your disability money at a casino every month???

Sun, 08/07/2016 - 17:06 Permalink
Bryan

In reply to by Kim (not verified)

Hi Kim,

Hi Kim,
I would say that there are better uses of that money, but it may not be fraud or illegal depending on the circumstances.

Mon, 08/08/2016 - 09:55 Permalink
timmy (not verified)

An old friend that I haven&

An old friend that I haven't seen in 15+ years told me about the ssdi benefits they receive. Problem is, in youth, the beneficiary was very smart about psychology. I always thought that a PHd was almost guaranteed. Now, still almost verbatim, can self diagnosis mental disorders of both self and others. I know the knowledge was capable years ago. We were involved then romantically, and for the past few months. I was kinda left with the impression that the monthly payout, was more important to certain family. And wanted desperately to separate from the deposit. It just felt at times, that it was roused. If investigated, and found not in favor, is my buddy liable for all past payments received?

Mon, 08/08/2016 - 15:33 Permalink
Bryan

In reply to by timmy (not verified)

Hi Timmy,

Hi Timmy,
Yes, you friend may be liable for any money that the SSA determines was paid while your friend was not eligible for benefits.

Mon, 08/08/2016 - 16:58 Permalink
Sin4short66 (not verified)

What if i know someone who is

What if i know someone who is working full time plis getting disibility for a neck injury but still doing strenuous activity at work

Tue, 08/09/2016 - 09:56 Permalink
Emma (not verified)

How can you report someone

How can you report someone that has had a large amount of money by selling a house they have been left as parents died and this person is claiming everything i thought it was means tested

Tue, 08/09/2016 - 12:25 Permalink
Bryan

In reply to by Emma (not verified)

Hi Emma,

Hi Emma,
SSDI is not a means tested program, it is disability benefits that are based on work record rather than means. There are earned income limits, but for things like inheritances and returns on stocks, there would be no restrictions on how much money you can earn through unearned income.

Tue, 08/09/2016 - 15:52 Permalink
Tim (not verified)

Neighbor hunts with crossbow,

Neighbor hunts with crossbow, walks around the dirt roads in the Northwood's with his bow and in full camo. He also rides Harley's and other motorcycles, as well as snowmobiles. He looks and acts fine, in fact, after a problem with my dog wondering in to his yard he walked over to my house and threatened to kick my a**, in front of four witnesses. Oddly enough he came back and did the same thing the next day, so I called the sheriff and had him arrested. When he came to court he was in a shoulder harness and wrist brace. The judge told him he needed an attorney. He asked him if he could afford an attorney, and he said no, that his only income was SSI disability. It is extremely funny to watch. The limp while walking, holding his arm and shoulder. The next day I saw him in town on his motorcycle, no brace no shoulder harness/sling! He's a real piece of work, and I would like to follow up on his fraud

Tue, 08/09/2016 - 20:49 Permalink
Bryan

In reply to by Tim (not verified)

Hi Tim,

Hi Tim,
You can report fraud here:
http://oig.ssa.gov/report

However, he may have legitimate problems with his wrist and shoulder. People with disabilities are not always unable to do things like ride motorcycles and hunt. In fact, many states allow crossbow hunting specifically for individuals who cannot use a bow.

Wed, 08/10/2016 - 10:27 Permalink
Mrs. T (not verified)

I know of someone that is

I know of someone that is committing fraud by collecting payments for a child that is incarcerated and another that has been involved in criminal activity. How is this still possible. How do I report it.

Thu, 08/11/2016 - 13:18 Permalink
Bryan

In reply to by Mrs. T (not verified)

Hi there,

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

Mon, 08/15/2016 - 11:27 Permalink
Martha kay benjamin (not verified)

aRE: 16139358 if theft

aRE: if theft associated with gang n this claim
While in Arl trying to leave.as before. All of complaints cont.
Arlington police department tx. We were dealing with stalk issues. Contact Det
He is the man that can verify I'm me while in ur office u needed someone in story to prove me.
I can't make it up. Too old too broken in mind body & now again finances.
Do ur jobs so i can stop & pick up pieces of w
Issue before & post. Incident.
Address u had had been forwarded them if hrs get with them.
At

Thu, 08/11/2016 - 16:55 Permalink
Bryan

In reply to by Martha kay benjamin (not verified)

Hi Martha,

Hi Martha,
I'm sorry to hear about all that! Please contact the authorities immediately if you are in danger, we are not affiliated with the SSA and unfortunately we would not be able to follow up on the information that you have given us.

Fri, 08/12/2016 - 15:11 Permalink
Rachel (not verified)

If you know someone filed for

If you know someone filed for and got divorced but still live tof ether just so the wife cab get SSI. Is that something that is frowned upon or is it ok?

Thu, 08/11/2016 - 21:15 Permalink
Anna (not verified)

I know someone who receives

I know someone who receives DISABILITY BENEFITS and works for a satellite retailer or a rep. And gets paid under the table. Is that legal? He said if he is asked about the job he will lie and say its volunteer work

Fri, 08/12/2016 - 15:09 Permalink
Larry jobe (not verified)

Someone I know should not be

Someone I know should not be receiving any kind of assistance from anyone let alone the social security disability insurance company. She is a fraud and has been costing this administration thousands of tax payers money

Sat, 08/13/2016 - 05:48 Permalink
Bryan

In reply to by Larry jobe (not verified)

Hi Larry,

Hi Larry,
You can report fraud by sending the information to the SSA here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Mon, 08/15/2016 - 10:03 Permalink
Lilo (not verified)

Is it a crime to receive ssi

Is it a crime to receive ssi and not live in the country? The ssi is received because my bother was killed. The widow moved rents her house out that she paid for cash from brother's insurance. They receive rent which she doesn't report to IRS and she lives in Mexico. You can find out because my niece doesn't attend school on the US so it would be easy to get records of that. But is it illegal?

Sun, 08/14/2016 - 05:22 Permalink
Bryan

In reply to by Lilo (not verified)

Hi Lilo,

Hi Lilo,
I'm very sorry to hear about your brother.
This may not be fraud as they are receiving Survivor's benefits rather than SSI. Because it is based off of your brother's work record, it may be payable to someone not residing in the country.

Mon, 08/15/2016 - 10:05 Permalink
Jane (not verified)

Is it considered fraudulent

Is it considered fraudulent conduct if someone disabled seeks legal custody of a relative only because they "need the money" (meaning that their disability check will go up)?

Tue, 08/16/2016 - 03:37 Permalink
Bryan

In reply to by Jane (not verified)

Hi Jane,

Hi Jane,
I don't think it would because they would need to legally adopt this person rather that just have custody of them for them to be eligible for benefits, and even in that case, they would need to use that person's benefits for the child they have in their custody or face losing their own eligibility. However, Misrepresenting yourself to be eligible for more money is considered fraud by the SSA.

Tue, 08/16/2016 - 09:47 Permalink
Jane (not verified)

In reply to by Bryan

Thank you so much for

Thank you so much for answering my question. Is there a process through the SSA for holding someone accountable to make sure they are using the money for the child?

Tue, 08/16/2016 - 18:00 Permalink
Bryan

In reply to by Jane (not verified)

Hi Jane,

Hi Jane,
Yes, the SSA does track how auxiliary benefits are used, the representative payee must track what the money was used for.

Wed, 08/17/2016 - 13:51 Permalink
peggy j schoerner (not verified)

my neighbor is on ssi she

my neighbor is on ssi she says because she has black out spells and can not work, she still drives and works on the side getting paid to wash clothes cash. If she blacks out, doesn't need to drive, if she drives maybe she does not have black out spells.

Tue, 08/16/2016 - 15:12 Permalink
Bryan

In reply to by peggy j schoerner (not verified)

Hi Peggy,

Hi Peggy,
You can send that information to the SSA here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Tue, 08/16/2016 - 15:19 Permalink
Todd (not verified)

Can you report someone who

Can you report someone who you know is trying to collect under false pretenses ? For example. Woman told a dr she tried to kill herself and poison her son and kill him. Then diagonsed with 5 mental disorders. She then looses her son says everyone lied about her (3 people whom never met her) 8 months later she gets a dr who says with the limited given information she's given me I don't see her being a harm to herself or any children. She has been trying to collect disability for 4 years beginning was she had a slipped disc now she saying she has mental disorders then has dr's say she's fine. Should a person send all the conflicting info in on her so she can't collect?

Tue, 08/16/2016 - 23:49 Permalink
Bryan

In reply to by Todd (not verified)

Hi Todd,

Hi Todd,
This person may have a slipped disk and mental problems. If you know for a fact that this person is committing fraud, then yes, it may be a good idea to report them.

Wed, 08/17/2016 - 13:54 Permalink
Anonymous (not verified)

My husband gets disability

My husband gets disability because he says he can't read or write...we send text everyday all day ...he drives read I g the road signs..then sits there and laughs about getting paid to be lazy. I am so upset my uncle's is mentally retarded and works part time...yet my husband is healty 28 years old and laughs that the people at social security are easy to full he said all he has to do is at stupid

Wed, 08/17/2016 - 06:41 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
To report fraud to the SSA, you can send a letter here:

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

Wed, 08/17/2016 - 13:55 Permalink
John (not verified)

Hi, Brian.

Hi, Brian.

Thanks for allowing us to ask questions and pose thoughts. I have an issue with someone I was with for 5 years, who knowingly committed fraud within the state level with ACCHS (filing of false documents, unreported income, etc.) and collected well over $100K a year in benefits (paid to medical facilities and practitioners). At the Federal level, she applied for, and on the first attempt, was awarded full disability based on her health condition, and having multiple letters from practitioners. This person is suffering from a disease, but she continues to work "under the table", collecting unreported funds - and the people she is working with are long term friends (they were friends of ours also and own their establishments), and knowingly are paying her under the table for the work she does. She does not report any of the income as it would put her over the level of acceptable income for all facets of her healthcare and SSDI benefits.

I was with this person for over 5 years, as stated earlier, living in the same house and witnessed all of these behaviors first hand. I have not been with her for over 2.5 years, but she continues to fraudulently work, accept funds, sell prescriptions for money, and falsify reports. She is healthy "when she wants to be" and with her disease she can be "sick" at a moments notice and medically it would be almost impossible to prove otherwise.

All assumptions aside - I have several key, and proven areas, and hard copy documents I can refer to, which show her fraudulent behavior. If I decide to move forward with filing a claim, and these documents, which are 5+ years old, cannot be found, or evidence substantiate what I know to be true - should I avoid filing a claim of fraudulent activity? Also, if substantiation of fact does not turn up evidence to prove fraud beyond reasonable doubt, what is the likelyhood I would be held accountable for filing this claim and what are the possible consequences I could face?

I know she is acting fraudulently, I can point to the exact documents, filings, workplaces (times, some amounts, gifts not reported, etc) associated with paying her under the table and not reporting wages, but like many people here, and reading this, I would never want to report this knowing I could face negative reprocussions for doing what I know is right... Fraud is wrong - but, consequences to those of us who are innocent by "in the know" could easily thwart the actions of reporting such fraud.

Thanks for letting me post this question and pose my thoughts.

Thu, 08/18/2016 - 00:26 Permalink
Bryan

In reply to by John (not verified)

Hi John,

Hi John,
If you make a report in good faith, then the SSA may not penalize you for doing so if they don't find evidence of wrongdoing.

Fri, 08/19/2016 - 09:22 Permalink
John Hurt (not verified)

In reply to by Bryan

I'm confident in the

I'm confident in the wrong doing; I want to ensure I'm doing what is right and there is a slight fear of "what if", but the proof is solid and it would provide the courts the preliminary information needed to determine if there is fraudulent behavior worthy of criminal intent. Thank you for answering my question and for serving as a resource for those of us who legitimately are concerned with fraud issues but aren't sure how or when to approach them.

Sat, 08/27/2016 - 03:29 Permalink
Robin Wright (not verified)

What if you new of a couple

What if you new of a couple that owns there on Construction Company builds houses remodels houses and does a lot of work themselves on the construction and they are both own disability in my opinion they don't need disability they if they get paid for building houses so is this wrong of disability taking advantage of disability that's my question thank you

Thu, 08/18/2016 - 11:37 Permalink
Deanna

In reply to by Robin Wright (not verified)

Hi Robin,

Hi Robin,
That definitely sounds like it could be fraud. If they're earning more than $1,260 per month, they are committing fraud and you could report them.

Thu, 08/18/2016 - 15:03 Permalink
Rhonda (not verified)

I know someone that gets

I know someone that gets benefits and they are receiving benefits for there children but they don't have/ and haven't had the child for a few years. They also have been in and out of jail spending at time months in jail and still receives benefits. Can I make a claim for them to be investigated?

Fri, 08/19/2016 - 19:53 Permalink
Bryan

In reply to by Rhonda (not verified)

Hi Rhonda,

Hi Rhonda,
You may want to contact the SSA, you can do so here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Mon, 08/22/2016 - 09:02 Permalink
Randy (not verified)

I know somebody collecting

I know somebody collecting sis that even she out United state like 4 months not declare & still receiving money from sis never work in united state ? Green holder only. This person always in the casino

Sat, 08/20/2016 - 03:38 Permalink
Bryan

In reply to by Randy (not verified)

Hi Randy,

Hi Randy,
It is possible to receive disability benefits while out of the country. I really wouldn't be able to say if this person is committing fraud because of that, and that I do not know the particular details of this person's case.

Mon, 08/22/2016 - 09:05 Permalink
neno (not verified)

I know one of my neighbors

I know one of my neighbors who pretends to be disabled and on wheelchair to get disability benefits. I normally see him walking around on both of his legs, normally. But, another day I saw him on a wheelchair going to the social services. And the next day, he us walking fine. It's obvious that it's all an act. What should I do? I know that I should report it but I don't want my neghibor to know that's it me.

Sat, 08/20/2016 - 22:52 Permalink
Bryan

In reply to by neno (not verified)

Hi Neno,

Hi Neno,
It's possible that this person has a condition that doesn't confine him to a wheelchair all the time that still affects their ability to work and function. As I don't know the particulars of this person's case, I really would not be able to say that this person is committing fraud. However, if you do report to the SSA, you can do so anonymously.

Mon, 08/22/2016 - 09:07 Permalink
Mark (not verified)

I know someone whom I think

I know someone whom I think is taking advantage if disability SSN. They just got twenty thousand dollars from their ex husband, it was sent to this persons bank in less than ten thousand increments, so it will not alert IRS. This person has a side business with business cards and an online address to selling healing, to people in pain, for thirty dollars a session. I have seen a check for Five hundred and something dollars for one month of sessions from one person alone. They also have a church that they work out of where the church gets a percentage of the take. This person said they have fibromyalgia that they themselves have healed, yet they still take money from the government for disability.

Sun, 08/21/2016 - 11:53 Permalink
Bryan

In reply to by Mark (not verified)

Hi Mark,

Hi Mark,
To report this to the SSA, you can send the details of this case here:
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Mon, 08/22/2016 - 09:09 Permalink
Steven Lent (not verified)

In February 2012 my SSI check

In February 2012 my SSI check was deposited into my Mother's
(rep. Payee) checking account. My Mother was very ill at the time and was unable to give me the funds prior to passing on the 11th of February. When I asked my Step-Father about the funds he told me that they had been frozen by the Bank and that he would let me know when they were available. I asked the same question every month since then and received the same answer. I finally did some research and found that if the bank had held the funds it would have returned them to Social Security. When I confronted my step-father with this information he admitted that he had removed the funds and that because it has been over three years since the incident that I could not do anything about it. Is this true
and if not who do I report this theft to?

Mon, 08/22/2016 - 09:29 Permalink
Bryan

In reply to by Steven Lent (not verified)

Hi Steven,

Hi Steven,
I'm sorry to hear about that! Yes, that may be considered fraud, and you can report it here:
http://oig.ssa.gov/report
you also may want to contact the SSA and have your representative payee changed to someone you can trust in handing your benefit money.

Mon, 08/22/2016 - 09:35 Permalink

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