Washington, D.C. – A new anti-fraud initiative by the Department of Government Efficiency (DOGE) at the Social Security Administration (SSA) has triggered widespread confusion, service delays, and criticism—after revealing that only two out of more than 110,000 phone benefit claims were flagged as having a high likelihood of fraud.
Introduced in early April 2025, the policy was designed to prevent fraudulent claims made via phone. Instead, it has exposed a stark mismatch between perceived threats and actual risk—raising questions about government priorities, data accuracy, and the cost of poor policymaking.
A Fix for Fraud That Barely Exists
According to internal SSA documents reviewed by Nextgov/FCW, the fraud detection system slowed retirement claim processing by up to 25%. Yet out of more than 110,000 calls reviewed under the new policy, fewer than 1% were even flagged as potentially suspicious, and just two cases were labeled as having a “high probability” of fraud.
“No significant fraud has been detected from the flagged cases,” stated the internal report.
In other words, the vast majority of claims were legitimate—and the system designed to catch fraudsters may have caused more harm than good.
Three-Day Delays and Public Backlash
The core issue? SSA’s anti-fraud checks implemented a mandatory three-day hold on all retirement and survivor phone claims. While intended to allow time for fraud screening via tools from TransUnion and PinDrop, the delay caused a massive backlog in benefits processing.
An internal memo described the result as a “degradation of public service,” adding that the policy delayed critical benefits to seniors and other recipients who rely heavily on timely payments.
DOGE’s Claims vs. Reality: A Misinformation Problem
The original push for anti-fraud measures was driven by public comments from DOGE engineer Aram Moghaddassi, who claimed on national television that 40% of calls to change Social Security direct deposit details were from fraudsters.
However, SSA has since clarified the data. In reality, 40% of direct deposit fraud involves phone calls, not that 40% of phone calls are fraudulent. The difference is substantial—and the misinterpretation triggered major policy reversals, including a short-lived restriction that barred beneficiaries from filing claims or making changes over the phone altogether.
Musk and Trump Amplify the Error
Statements by Elon Musk, Vice President J.D. Vance, and former President Donald Trump echoed the false 40% statistic. Musk, who briefly led DOGE before stepping down, repeated the number in a speech, while Vance framed the fraud issue as proof that “DOGE has got a lot of work to do.”
The SSA has since restored phone services, but anti-fraud screening still runs in the background for certain claims.
Senator Warren Slams Policy as a “Backdoor Cut” to Benefits
In response to the growing frustration, Senator Elizabeth Warren (D-Mass.) condemned the new measures and launched a “Social Security War Room” to counter what she described as reckless administrative interference.
“There’s nothing efficient about making it harder for people to access the checks they’ve earned and are owed,” Warren said. “Every one of DOGE’s so-called ‘mistakes’ is a backdoor cut to benefits.”
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System Overload: Over 140,000 Claims Backlogged
SSA is now facing a historic volume of retirement claims, with over 140,000 cases pending beyond 60 days. Agency insiders say these backlogs are a direct result of the anti-fraud policy and the surge in retirements this year.
Many experts argue that the fraud solution was unnecessary from the start.
“It felt like a solution in search of a problem,” said Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities. “The numbers just don’t support the narrative.”
How Much Fraud Is There, Really?
According to SSA’s own oversight reports:
- Only 0.3% of Old-Age, Survivors, and Disability Insurance (OASDI) payments are flagged as “improper”
- Of that tiny fraction, actual fraud accounts for an even smaller sliver
- Direct deposit fraud via phone? Less than 0.0003% of total benefits
Despite the minuscule numbers, DOGE’s sweeping policy was enforced nationwide.
The Path Forward: Will SSA Roll Back the Policy?
SSA leadership is now reportedly considering eliminating or significantly revising the three-day fraud hold, and reevaluating its identity proofing standards across the board. For now, anyone wishing to change direct deposit information over the phone must first verify their identity through their SSA online account or appear in person—a requirement that many rural and elderly Americans find difficult.
In a statement following the publication of these findings, SSA Senior Advisor Leland Dudek claimed that the agency has stopped over 20,000 fraudulent attempts across all platforms, including both phone and online transactions.
However, the internal memo reviewed by Nextgov/FCW specifically refers to phone-based claims—where fraud detection appears virtually nonexistent.
The “Social Security DOGE fraud crackdown” has revealed more about the risks of bad data and hasty decision-making than it has about fraud itself. While the intention may have been to safeguard public benefits, the result has been confusion, delays, and disservice to the very people the system is meant to protect.
As misinformation continues to circulate, the SSA—and the American public—are now left to clean up the mess.