What Is Social Security Fraud?
Social Security is a social welfare program that dispenses benefits to aging, blind and disabled citizens. Social Security benefits provide eligible beneficiaries with a source of weekly income to help reduce the need for other social services like welfare or food stamps. Unfortunately, some claimants may attempt to defraud the Social Security Administration to illegally increase the amount in benefits they receive, or to qualify as eligible when they truly are not. Social Security fraud comes in many forms, and offenders are subject to permanent and future loss of Social Security benefits, repayment, fines and even jail time.
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Misrepresentation
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A claimant has committed Social Security fraud when he misrepresents his status to the Social Security Administration and receives benefits he would not have otherwise received because of it. Misrepresentation includes lying about one's marital status, source(s) of income and other information that might affect his benefits. If the claimant's misrepresentation results in false eligibility or higher benefits, he has committed fraud.
Concealing Information
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Like misrepresentation, concealing information is also a form of Social Security fraud. Concealing information such as income, investments or other assets could be fraud if the information affects the claimant's eligibility. If a claimant fails to report income or other information, and subsequently receives more benefits than to which she is entitled, she likely committed Social Security fraud.
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Conversion
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When a Social Security claimant is incapable of handling his own affairs, the Social Security Administration may appoint a guardian, called a representative payee, to oversee the claimant's benefits. A representative payee who takes advantage of her position and pockets some or all of the benefits for her own use is guilty of conversion. Conversion is both a form of theft and a form of Social Security fraud. Likewise, if a beneficiary collects benefits and knowingly converts the money to another friend or relative, the beneficiary is guilty of Social Security fraud.
Failure to Notify
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When a Social Security beneficiary passes away, her claim to benefits expires immediately. The Social Security Administration requires relatives to report the deaths of beneficiaries immediately to terminate future payments. Failing to report the death of a beneficiary and continuing to collect the benefits in the deceased beneficiary's name is a form of Social Security fraud.
Forged Documents
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Forging or altering Social Security cards is illegal in the United States. When a forged or altered Social Security card is then used to collect Social Security benefits, it becomes Social Security fraud. Citizens and immigrants who used forged documents to collect benefits are subject to penalties and other punishments for committing Social Security fraud, in addition to steep fines and prison time for forging Social Security documents.
Employee Impersonation
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Individuals have reportedly posed as employees or representatives of the Social Security Administration and have contacted individuals to solicit personal information in exchange for promises to enroll the individuals in the Social Security program. These individuals request information such as your Social Security number, date of birth and/or your bank account and other financial information. If you receive a telephone call or email from someone posing as an employee of the SSA, it is a scam and a form of Social Security fraud. You should report the scam attempt to the SSA immediately and withhold your personal information.
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References
- Social Security Online: False Statements on Claims
- Social Security Online: Concealing Material Facts or Events that Affect Eligibility for Benefits
- Social Security Online: Misuse of Benefits by a Representative Payee
- Social Security Online: Buying or Selling
- Social Security Online: Scams Involving the Impersonation of an SSA Employee
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