Social Security Administration officials ignored income alerts

An audit by the Inspector General has revealed that Social Security Administration employees ignored or failed to fully review approximately 80% of automated alerts regarding potential improper benefit payments. In September 2024, computer systems flagged over 400,000 individuals who may have been receiving checks they were no longer eligible for due to unreported income.

Recipients have received more than $1 billion in improper payments over the last two years. While the government may be able to recover $344 million, an estimated $664 million is likely unrecoverable because Social Security generally cannot claw back overpayments made more than two years ago unless fraud is proven.

In a sample of 100 alerts, auditors found that 37 were never reviewed, 26 were only partially reviewed, and 17 were dismissed without a full income review. Of those sampled, 42 recipients had hidden income that should have reduced their benefits. The agency reported $11.3 billion in improper payments for fiscal year 2025, marking one of its highest levels in recent history.