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Trump Administration's Social Security Fraud Crackdown Finds Almost No Fraud, Sparks Backlash

Internal documents reveal that anti-fraud measures flagged only two suspicious calls out of 110,000, causing significant processing delays and igniting criticism of the policy's impact on beneficiaries.

Elon Musk, here seen on Capitol Hill on Dec. 5, 2024, has called Social Security “the biggest Ponzi scheme of all time.”
A protester holds signs that read 'This billionaire stole your social security number' during a protest at a Manhattan Tesla dealership to demonstrate against Tesla CEO Elon Musk, on March 13, 2025, in New York City.
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Overview

  • An internal Trump administration document shows the anti-fraud tool detected only two potentially fraudulent calls out of over 110,000, a fraud rate of just 0.0018%.
  • The anti-fraud checks, implemented by Elon Musk's Department of Government Efficiency, slowed retirement claim processing by 25%, delaying payments to beneficiaries.
  • The policy applies only to phone-based claims and involves a three-day hold for fraud screening, despite an extremely low risk of fraud.
  • Lawmakers, including Sen. Elizabeth Warren, have criticized the measures as a pretext for undermining Social Security, calling the revelations a 'huge scandal.'
  • The crackdown follows exaggerated claims by Trump and Musk that 40% of Social Security calls were fraudulent, a figure now debunked by internal data.