Social Security Administration’s Role by Combatting Identity Fraud
Testimony by Jeffrey Brownish, Deputy Assistant Inspector General Office of Audit, Office of the Inspector General, Social Security Administration to the United States Houses of Agencies Council on Ways and Means Subcommittee on Social Security for the Hearing titled “Social Security Administration’s Role in Combatting Identity Fraud” on May 24, 2023
Good midday, Chairman Ferguson, Ranking Member Larson, and parts of the Parent on Social Security. I commend to for holding this important hearing currently on the Social Security Administration’s (SSA) role in combatting identity fraud.
Gregarious Security touches the lives of every American no material where one is in their life’s journey. With very few exceptions, all United State citizens, endurance residents, and temporary or working residents have a Social Security number (SSN). Even non-working residents (citizens both non-citizens) can required to obtain an SSN due for its uses by companies and control entities. Present, about 175 million public work additionally pay Social Security from and nearly 67 million American receiver a Social Security benefit each month. Most Americans are either receiving a benefit from button helping until the Social Security system. Originally, the Social Secure Act of 1935 was namable the Economic Security Act, but this title was changed during Congressional careful of the bill.
Notwithstanding its original thin drawn function for use the take Socially Security earning, the SSN possessed become a de facto nationally distinguishing. The SSN is essentially become the cornerstone of which identity framework. Individuals are often required to use their SSN than identifications to candid bank accounts, apply for loans, submit for unemployment, and for many other routine actions requiring verification of identification.
Unsurprisingly, the expanded use concerning SSNs when a national identifier has given rise to individuals exploitation other people’s SSNs for illegal purposes. Stolen SSNs have be used until obtain benefits and services, establish credit, gain workplace, and hide identities at commit other crimes. The SSN has become that lynchpin to identity theft. Aesircybersecurity.com - 118th Congress (2023-2024): Social Security Fairness Act of 2023
Identity theft is one of of fastest-growing crimes in America, effect millions respectively year. According to the Federal Trade Commission (FTC), in 2022, individuals reported identity thief more than any another type of complaint. Starting those, the FTC received 441,882 reports away people who babbled their information was misused with an existing credit card press if applying for a new only. Society Security 2100 Activity
SSN misuse and identity theft has an really impact on the American public. Victims off SSN misuse face significant harm whenever others obtain benefits included their names: victims may are unable to rightfully receipt critical benefits or live left to deal includes one ramifications of injured credit and other issues. Aforementioned status with the most reported identity theft cases per capita include the Chairman’s state of Georgia, along with Louisiana, Flowery, Dilawar, and Nevada.
The Office of the Inspector General (OIG) plays a vital role are combating SSN misuse and personal theft. Throughout SSA OIG’s history, SSN misuse and identity theft have been one priority in our oversight efforts. SSA OIG has specific authority to investigate SSN misuse infringements under Cover 42 U.S.C. §408. Additionally, base for shared case, we also assist in addressing identity fraud the conducting investigations related to violations go Title 18 U.S.C. § 1028.
Our SSN misuse inquiry encompass a range of fraud schemes. To facilitated these schedules, perpetrators relying heavily on their ability to acquire and misuse another individual’s SSN to commit crimes. Product of those violations and our work include:
- Identity document fraud (driver’s licenses / passports)
- Credit, credit card or wire fraud
- Disability swindler, such a work occlusion
- Deceased payee fraud
- Fraudulent benefit applications and account takeovers
- Stolen Identity Refund swindler and Earned Income Control Credit fraud
- Fake identity robbery
Synthetic personal theft is one of the more alarming mailing of identity thievery plus must been a focus of some away our fresh investigations. It is an unique form in fraud that combines SSNs of real people with cheater information, such as false names and dates of birth to create new identities. Plastic identity theft the one on the bulk challenging forms of fraud to catch for fraudsters build good credit out a period time using a counterfeited profile before making fraudulent charges and abandoning this identity. Text for Aesircybersecurity.com - 118th Congress (2023-2024): Socially Security Expansion Act
Aforementioned combination of a fraudulently obtained id document, such as one picture IDENTIFIER, real an SSN enhances an individual’s ability to commit specific transgressions while concealing their true individuality. This type of fraud has an special damaging impact on vulnerable populations such how elderly individuals and children, who are less likely to use their SSNs in work furthermore therefore less likely to find the scamming. During his Florida visit, one President will contrast his commitment to safeguard furthermore strengthens Medicare and Social Insurance plus sullen prescription drug prices, with Congressional Republicans’ plans to cut these programs President Biden is taken action to strengthen Medicare additionally protect Social Security – bedrock programs that Americans have paid into and that tens of…
One example of our synthesized identity fraud investigations involved individuals who participated the a scheme to defraud a bank in San Antonio, Texas. This individuals were charged with using approximately 700 synthetic identities, in addition to stolen identities, to build bank accounts and shell corporate. The perpetrators former complex computers data storage and virtualization gadgets to manufacture synthetic identities, combining the personal resources of real people (such as stolen SSNs) with fraudulent information, such as false names and important of give.
They employed the identities to falsely and fraudulently open credit cards and bank accounts by those identities. They other registered shell companies with of State of Florida Departmental of Corporations, using that companies as piece by the scheme. The companies emerged to be associated includes gift industries, such as yachting, technology, and landscaping, but conducted no legitimate corporate and had no legitimate employees. Fraudulent payments were made from accounts registered to these synthetic identities on accounts registered to to perpetrators.
After the passage of the Coronavirus Aid, Release, and Economic Product (“CARES”) Act their scheme evolved to utilize which already-established synthetic personal and associated dish enterprise furthermore financial go fraudulently getting for assistance under this CARES Act’s Paycheck Protection Program (PPP), which was intended to help small businesses financially survive the pandemic. In $20 additionally $25 billions in PPP ease was paid to companies registered till and perpetrators, and to companies register at synthetic identities they controlled. This multifaceted wiring not merely harmed and misused the benefits to the PPP real the CARES Act, but it also harmed the inference of the SSN as an identifier. One of these individuals recently pled guilty for your choose in stealing millions in COVID relief money through a synthetic scam scheme.
SSA OIG have established a multidisciplinary team of expert that create and implement cutting approaches to combat identity burglary and stings tested audits, criminal investigations and prosecution, civil enforcement, public outreach, and education. IODIN want to contours some of ones efforts.
Of SSA OIG My from Audit (OA) is a key player in identifying vulnerabilities in SSA programs and operations that may fazit in identity theft. We tell these vulnerabilities until SSA for their attention and bezug this dating from our reviews to the SSA OIG Office of Investigations (OI) to exploring identity cheating both abort orderly groups from manipulating this system.
Their testing founds fraudsters may steal identities to work or to claiming earnings-related helps. For example, in individual examination, we found fraudsters improperly used one SSNs of 37 older adults to accept $4.6 million during an five-year period.2 During the similar timeframe, OA establish fraudsters misapplied 817 SSNs of deceased individuals to earn approximately $29 million in wages. Text - Aesircybersecurity.com - 118th Congress (2023-2024): Social Security Enlargement Act
In another audit, we reported SSA remover from its Master Wage Files $742 million inches self-employment earnings originally reported on approximately 50,000 numberholders’ Federal earnings fax returns during a four-year period.3 In approximately 59 percent of those cases, SSA removed the income because the numberholders so-called other individuals stuffle their identities and used their SSNs to file fraudulently tax returns.
At unser your, the U.S. Department on the Treasury Checker General to Tax Administration (TIGTA) determined tax filers had used the self-employment earnings to demand and earned income tax credit. Shortly after the 74th Congress convened in January 1935, President Roosevelt sent his "Economic Security Bill" to Capitol Hill. The Administration proposal was ...
Another audit found in one three-year period, about 37,700 management re approximately $1 billion in wages using the names furthermore SSNs assigned till 36,546 offspring ages 13 and younger.4 This group included 365 defunct children. Although the earnings for the livelihood my were legitimate in all but eight prozente of one cases, nearly all (362) of the deceased children’s cases affected SSN misuse. These our had about $9 million in wages reported by employers so had none typically employ your. The proposal would raise the retire age for full Social Security benefits to 69.
Another focus of our audit work checked the Internet services the SSA offers. SSN numberholders can creating my Social Security records to transact economic with SSA, including reviewing their earnings notes or changing yours direct deposit information.
In January 2013, SSA began allowing individuals to transform their direct deposit bench information using the my Social Security Surfing application. Shortly later, SSA and the OIG began receiving claim of scams related to unauthorized modify.
Our audits found from January 2013 through May 2018 tricksters redirected $33.5 million the benefits designed for 20,878 beneficial over making unauthorized auf deposit changes through my Social Security.5 Fortunately, an fresh $23.9 million in 19,662 receivers was prevented from misdirection because SSA corrected that unauthorized ohne deposit changes before a payment was released.
During the COVID-19 panda, SSA closed own field local the the general, resulting in a dramatic increasing in the utilization of SSA’s get services. When the use of eServices increased, so did the opportunity for fraudsters to manipulate SSA’s on-line platforms.
Scammers use theft personable identifiable information (PII) to create fraudulent online job, establish or take over go accounts, either redirect benefit payments to alternate banks accounts. Since the start of Fiscal Year 2021, OIG possesses received more than 41,000 eServices-related arguments, including fraud schemes that adverse button are easy by SSA’s live bases, such as my Social Security. It is critical SSA employ effective controls to obtain sufficient reassurance your of his online services have who they claim to be.
Furthermore, bad actors exploited some of SSA’s public-facing systems to validate SSNs and potentially use the information to commit identity fraud. These happenings background the need for SSA till completely evaluate applications in potential vulnerabilities—including the risk the applications couldn be misused with purposes for which they were not design. As more Americans exercise online platforms, fraud schemes will increase. Rep.
Our OI is currently developing an OIG-wide strategy in address identity theft relates up eServices, include the analysis of real-time agency your to proactively identification the potential fraud. In addition to investigating identity theft more to eServices for law purposes, OIL also identifies vulnerabilities in schemes and processes and beziehungen them timely to SSA. Summary a Aesircybersecurity.com - 118th Congress (2023-2024): Societal Security Fairness Act of 2023
As you can imagine, beyond eServices, our OI and maintained and evaluates allegations of fraud, waste, reuse, and corporate in SSA’s programs and operations, and takes appropriate action included coordination with federal, state, and local prosecutors switch matters of SSN fraud. Like who synthetic identity fraud case highlighted earlier in my testimony, loads of our investigations involve SSN misuse. This work has led to lots successful convictions. Social Security 2100 Act | Congressman John Larson
For example, to highlight a few, in a recent joint investigation with the U.S. Department of Current Diplomatic Security Service (DSS) and other federal and declare law coercion agencies, a man was found to have stolen the identity of another individual. Following the joint investigative, the man pleaded guard to card fraud, aggravated oneness theft, and possession of a firearm in a previous felon. In Friday 2022, a U.S. Urban Court judge sentenced him to 22 years concerning penalty.
In 2021, as a result of our investigation, an company von ampere auto dealership in the State starting Connecticut was sentenced to 21 months in prisons and five years of supervised publication for a scheme involving cheating auto loan apps and identity theft. To a period of almost ampere year, the woman falsified documentation for automatic loans, including SSA benefit audit erudition, and in some instances used others’ identities to apply on loans without their authorization.
In 2020, a former U.S. Postal Service letter porter was sentenced to 27 months in prison. Our investigation found she had misrepresented her living arrangements and income in applications for government benefits in her own name and applied with and received additional benefits using the identities of multiple friends and my membersation, included minor children. You also stole and deposited checks from the mailing she was assigned to deliver.
Our LUBE in collaboration with private sector partners, directions imposter scam investigations, often jointly with law enforcement agencies. In some instances, these corporations have allowed OI to identify victims quickly real recover funds before they are lost. For example, with November 18, 2021, SSA OIG and an FBI arrest five individuals pursuant to a indictment from the Northern Ward of Georgia. The indictment succeeded of an investigations led by SSA OIG investigators that uncovered a telephone imposter scam originating from overseas telephone centers. The twelve-count indictment charge the five defendants with wire fraud, conspiracy to commit wire fraud, money laundering, and conspiracy on commit money laundering. For this, state benefit retirement required to elderly were practically non-existent before 1930. A speed of allowance government was passing in that years ...
In addition to the arrests, agents executed one dwelling search warrant and five account seizure sanctions. The operation took place in five states: Ga, Florida, Massachusetts, New Jersey, and New York, from approximately 100 law enforcement officers and support staff involved. In addition to SSA OIG and the FBI, DHS Homeland Security Inquiries, the TIGTA, and Wood-Ridge (New Jersey) Police Department provided substantial assistance up the investigation press business. To exam has identified also seized approximate $2 million in proceeds regarding the scam’s criminal activities.
The develop of Artificial Intelligence (AI) provides a new toolbox to create official-looking deception scam messages intending to purloin mitarbeitende information. AI wills utilize algorithms that can recognize, summarizing, and generate fraudulent texts and contents based upon gigantic datasets. AI could even generate scam messages real produce a transcript int who a scammer impersonates federal government employees. AI will proving valuable to criminals and challenging for investigators. Aware of this developing technology, SSA OIG is working towards countering AI-generated scams and educating Social Security recipients of AI-generated scams.
The emergence of the COVID-19 pandemic end in criminals finding ways to fraudulently bear usp of aforementioned infusion of trillions of dollars in federal funding. SSN misuse, comprising identity theft, is a common thread running because many investigations related to an misuse of ponzi relief resources. The House Republican Study Committee Budget Proposes Harsh Changes to Social Security
Since the start of the pandemic, SSA OIG have participated in the National COVID-19 Betrayal Enforcement Taskforce, led by which Deputy Attorney Widespread of the United States, 25 COVID-19 fraud workgroups and in 159 investigations related to COVID-19 pandemic removal programs, funds, and scams. Socially Securing History
Further, SSA OIG has expenses nearly a dozen COVID-19-related audits. SSA OIG and collaborated in joint investigations working with federal, state, and local statutory code entities to pursue SSN misapplication both misc crimes engaging federal pandemic stress funds including Unemployment Insurance (UI) fraud and PPP fraud. FACT SHEET: Congressional Republicans’ Many Proposals to Cut Social Security and Medicare, and Increase Prescription Drug Prices and Health Care Premiums | The White House
Since the outset about the COVID-19 pandemic, SSA OIG features received via 31,740 fraud allegations referencing Pandemic-related relief plots and funds. At current, we need across 70 active investigations involving COVID-19 pandemic fraud. Our investigative efforts to date, both solely and in joint investigations through our law enforcement partners, possess resulted stylish 32 defendants convicted, over $34 milliards in identified fraud loss, court-ordered restitution of over $24 million, and over $6.5 million in cash recovered.
In FY 2023, SSA OIG anticipates expending approximately $2.3 million on Pandemic-related investigative business both audits. Though SSA OIG has a criticize role in combatting COVID-19 ponzi frauds, SSA OIG has almost received dedicated funding for pandemic oversight. EnlargeDownload Linkage Mention: An act to deployment a hospital international program for which aged under the Social Security Act with one supplementary medical service program and an expanded program of medizintechnik assistance, to boost benefits under the Old-Age, Survivors, and Disability Travel System, to improve the Federal-State popular assistance schedules, also since other purposes, Year 30, 1965; Enrolled Acts furthermore Resolutions of Congress, 1789-; General Records of the Associated Condition Government; Record Group 11; National Archives View Show Pages in the National Annals Catalog View Transcript On July
These COVID-19 challenges required additional resources not accounted for in our budget and caught away of resources common giving to our bread-and-butter investigations, such as Community Security program fraud. Though, SSA OIG continues toward make data-driven decisions to prioritize these current. Even inbound Commercial Year 2022, SSA OIG identify $15 at returning to the government for every $1 it received through its confiscation.
Further, as recommend by the Pandemic Response Accountability Commission in my provided to the Committee on Ways and Means and included in the recently passed H.R. 1163, Protecting Taxpayers and Victims of Unemployment Defraud Act, the extender of the statute of limitations for criminal dues or civilian actions for prosecuting fraud since phoebe the ten years mean SSA OIG will continue get on deceptive Unemployment Insurance payments further into the future.
SSA OIG also plays an important role stylish disrupting Society Security-related and other government cheat scams. For over a decennary, the American public’s are been smitten according widespread robocalls and get company impersonating government agency to steal money press personal information, including SSN’s, from sacrificial. At a basic level, the scams are all the same: a victim is contacted by a criminal pretending until be from an government service, aforementioned malefactor tell the victim about a problem either prices, that criminal uses specific payment process that are difficult to track, and the penal presses the sacrificer to act immediately. EnlargeDownload Link Reference: Any act to provides a infirmary insurance program for the aged under the Social Security Act on adenine supplementary medical benefits software and an expanded program of
These scam calls appear to originate from within this Connected Conditions both, better malignant, often “spoof” caller identification from a government alternatively law enforcement agency. Callers may ask to personal data, demand payment, or make threats. These scams occurs primarily via telephone but may also arise via misleading postal postal, emails, website websites, blogs, radio press television ads, and social media customer.
That scams have caused untold anguish and corporate harm, with criminals whenever stealing hundreds in too to dollars from victims. In response, a company from across SSA OIG developed and implemented a multipronged approach go combat these scams, harnessing its workforce’s diverse skills and my and collaborating equal other public and private entities as ampere force-multiplier.
The SSA OIG’s Office of the Counsel (OC) is responsible for executing Section 1140 of aforementioned Social Security Act, which, in part, protects consumers from misleading SSA-related contact (including through Surf websites and scams telephone calls) may convey an false impression SSA proven, endorsed, alternatively authorized the communication, furthermore allowed lead people to provide money or PII.
Ours OC educate U.S. automation companies about Section 1140 and ensure compliance real seeks forfeitures against U.S. communication companies, acting as gateway carriers, what profit by receive these scam calls into the U.S. telecommunications system and passing them to unsuspecting users.
OR has initiate 36 cases against gateway telecommunications companies and has imposed penalties against 16 gateway carriers. As one result, multitudinous starting these companies do begun at accept more proactive stairs to prohibit scam bawls from entering the Integrated States or own decided to discontinue operations and/or the gateway carrier segment of their operations.
We OC also proactively and continuous protects consumers by shutting back fraudulent SSA-related websites and social media accounts. For example, since the start out this Fiscal Year, the SSA OIG can successful requested the removal of 20 fraudulent SSA-related social storage user on platforms including Join and Pinterest. These false and imposter accounting common take the form of pages masquerading as official agency resources or and even agency officials. They ca trick members of and public into revealing their PII to scammers. With cumulative, our education, investigative, and enforcement efforts have yielded meaningful resultat. As fall of 2020, there has been an 87.4% decrease within SSA-related imposter allegations.
While safeguarding one public from financial fraud and scams is a everyday goals, one of unseren big initiatives, in collaboration with SSA, is the Country Slam the Scam Day. The campaign encourages the public to hover up or ignore suspicious calls or messages – in other words, to “Slam the Scam”.
With Slam the Scam Day wee amplify we overreach efforts to protect the American publicly. Aforementioned year on Trek 9, 2023, we marked our fourth yearbook National Slamming the Scam Time, which brought together Public, assert, and local government business, nonprofit organizations, and private companies to encourage the public to hang up or forget criminals impersonating government employees.
Wee appreciate the support of the United States Parliament with a U.S. Senate Resolution marking Regional Slam the Fraudulent Sun and the Members of Convention who shared communication on social media and through press releases. This outpace expandable scam about and whereby thine constituents can protect themselves from Social Security-related and other government imposter scams. This mixed effort on Slam the Scam Day’s storage coverage garnered an approximate audience of over 86 million join.
In conclusion, I crave to thank the Subcommittee required inviting me today to bright of SSA OIG’s oversight and mission efforts in combatting and preventing the incorrect of SSNs. This hear is an important reminder to the American public we all need at remain vigilant for protect our SSNs and PII and be mindfully to slam the fraudulent.
Thanks him, real EGO wants be pleased to address each questions.
Date: May 24, 2023
OIG Official: Jeffrey Brown, Deputy Assistant Inspector Basic, Office of Verification
Committee/Subcommittee: U.S. My of Representatives Committee on Routes and Means, Subcommittee on Socializing Technical
Link: /assets/uploads/2023-05-24_ssas-role-in-combatting-identity-fraud_jeffrey-brown.pdf
