Thousands Affected Every Year by SSA Errors; Class Action Lawsuit Targets Devastating Mistakes as Layoffs Rock the Agency
Social Security: A shocking Social Security Administration (SSA) error turned West Philadelphia resident Renee Williams into a “living dead” statistic, cutting off her access to critical benefits and triggering a financial nightmare.
Now, her story is part of a growing national spotlight on the SSA’s mistaken death declarations—an error that affects nearly 10,000 Americans each year, according to official data.
What began as a simple clerical mistake in fall 2024 spiraled into months of agony for Williams. “It’s been nerve-wracking and never-ending,” she told CBS News Philadelphia. “I used to go to sleep wondering if I’d be cut off again.”
The Devastating Impact of a Mistaken Death
Williams’ Social Security checks abruptly stopped. Soon after, her bank accounts were frozen, her Medicare eligibility erased, and her IRS records voided. Even her mortgage company and credit cards shut down services. “It’s like you stop existing,” Williams said.
The SSA insists that its death records are “highly accurate,” with fewer than 0.33% of the 3 million annual death reports needing corrections. Still, that tiny percentage equates to nearly 10,000 people wrongly declared dead—each year.
A Class Action Lawsuit Takes Shape
This widespread issue has now sparked legal action. Consumer rights attorney Jim Francis has filed a proposed class action lawsuit against the SSA on behalf of a Baltimore family whose mother was mistakenly declared dead in 2023.
Her home was foreclosed before the mistake was corrected, and she tragically passed away without resolution.
“These are ordinary people living normal lives,” Francis said. “Then suddenly, their lives are dismantled—they lose pensions, insurance, benefits, even housing. It’s catastrophic.”
Ongoing Fallout Amid SSA Layoffs and Payment Errors
This legal escalation comes as the SSA undergoes major internal shakeups, with 7,000 employees laid off in recent months. Meanwhile, the Trump administration has also criticized the agency for overpayments to actual deceased individuals.
A new Inspector General audit found $300 million in improper payments between 2018 and 2022, due to benefits being sent to people who were truly dead.
The SSA has not yet responded publicly to the class action lawsuit or the Philadelphia case. However, many are now questioning how the federal agency plans to restore trust while also downsizing and correcting systemic flaws.
“I Want People to Know… This Can Happen to Anyone”
Although Renee Williams has recovered most of her life—her Social Security benefits have resumed and most financial accounts restored—she says the trauma lingers.
“I still have issues with credit cards, and I’ll never forget how quickly everything collapsed,” she said. “Social Security is supposed to protect people, not erase them.”
What This Means for Social Security Beneficiaries
If you’re a Social Security recipient, here’s what you need to do to protect yourself:
- Monitor your SSA records regularly through www.ssa.gov
- Keep your legal documents updated (marriage, death certificates, name changes)
- Report issues immediately to the SSA’s Identity Theft and Fraud hotline
- Contact a consumer protection attorney if you’re wrongly flagged or denied
SSA Errors by the Numbers
| Category | Data |
|---|---|
| Total Annual Death Reports | 3,000,000+ |
| Mistaken Deaths (0.33%) | ~10,000/year |
| Improper Payments (2018–2022) | $300 million |
| SSA Employee Layoffs (2025) | 7,000 |
| Legal Action | Class action in progress |