Social Security Disability Benefits Fraud

Submitted by Daniel on

Social Security Disability is a great benefit to those who truly need assistance due to a severe medical condition that prevents them from working for at least a year. However, sometimes people violate the law and fabricate a medical condition. Detecting a fraud in the Social Security system is a challenging process, but it is one that is necessary in order to maintain the integrity of the program. Determining whether someone is trying to take advantage of the system can be a difficult task, so before reporting an alleged fraud, consider the long journey ahead and all that goes into pinpointing fraudulent activity.

If you suspect someone is violating the law and is, in fact, fraudulently collecting disability benefits:

  • You need to know the reason why the person has been approved for benefits. If you are unable to determine this, research will need to be conducted to determine the truth before accusations are made.
  • You need to be aware that even though you see this person, you may not fully understand how the person’s impairment causes difficulties in daily living.
  • Some people receiving Social Security Disability suffer from mental or psychological disorders; these are not often easy to pinpoint as an outsider, and it may be difficult to judge how these conditions could interrupt the daily activities.

Typically you would have to know someone quite well in order to determine whether or not he or she is taking advantage of the system. Making strong accusations about someone receiving disability benefits is touchy ground, and something that you would not want to do lightly. When in doubt, do not be afraid to ask questions and look into the actions of the person. This can greatly help you determine where the truth lies. If you do still truly suspect someone of committing a fraudulent act, you should consider reporting that individual.

  • You should begin by contacting the toll-free Social Security Administration Fraud Hotline at (800) 269-0271.
  • Remember to provide as much information as you can. This includes the name, address, birth date, phone numbers, and Social Security number (if you know it) of the person suspected of committing fraud. The more information you provide, the sooner the investigation can begin. You should explain in detail to the SSA exactly in what type of fraudulent activity that you suspect this person to be involved.
  • Do not report anything that you do not know for sure. There are penalties for reporting false information, so stick with the facts.
  • Be certain that you understand the situation surrounding the person’s disability. Work may complicate the person’s condition more than you know. Some people are unable to work because they have to be medicated frequently throughout the day. There are also many individuals on disability who have to make trips to the hospital on a weekly or even daily basis. Other individuals may suffer from a psychological or mental condition that makes them appear quite normal, but they may, in reality, be struggling deeply on the inside. You must be fully aware of their circumstances to be able to judge if they are fraudulently collecting benefits.
  • If you feel uncomfortable telephoning regarding your concerns, you can complete an online fraud reporting form, or mail in your findings to the Fraud Hotline at:

Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

When working properly, the Social Security Disability program is a wonderful asset. To those individuals suffering and unable to work, or even waiting out the last stage of their lives, it is often a much-needed benefit. Unfortunately, some people take advantage of a good thing and use it improperly, as is the case with fraudulent behavior. While reporting this kind of activity is important, it is also a serious leap to take. Before you report your suspicions, you should realize that the most important thing is to know all the facts, and to move forward only if you are certain you have a definite case of fraudulent conduct.

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Blog comments

John (not verified)

There's this guy,

There's this guy, Neighbor who moved in... Came over and talk to me said he's disabled... And was lol that he collects and does what ever he wants... Next day watching him lift generators... Doing yard work... Then there was this car parked off and on by my house... So went up too it... PI is watching him... Said guy has a bad back and can't do anything ... Well this guy does more then a person with a good back... Un real what we watch this guy do... It pisses me off because he laughts about it ....what should I do.... Im mixed up about what I should do... And found out his wife works for our school system where my kids goes... So please help...

Wed, 03/30/2016 - 10:02 Permalink
Ann (not verified)

A family member moved out of

A family member moved out of his mothers house, and now lives with his grandparents. The mother is beneficiary over his SS money and his food stamps and refuses to give them any money. The son is 26yrs old. She says she needs the money to pay HER bills, yet really, it's HIS money and doesn't even live there anymore, he hasn't in a year!

Wed, 03/30/2016 - 10:38 Permalink
George (not verified)

I know someone collecting

I know someone collecting disability and working as a Auto mechanic I just don't understand how people get away with this, it drives me crazy. Someone please explain!

Wed, 03/30/2016 - 11:22 Permalink
Bryan

In reply to by George (not verified)

Hi George,

Hi George,
Collecting disability does not necessarily mean that you cannot work, and disabilities may not be visible.

Thu, 03/31/2016 - 14:36 Permalink
Deb (not verified)

I know a person that is

I know a person that is receiving SSDI for mental health and physical reasons that she can't work. She also works construction for cash under the table. Is this considered fraud?

Wed, 03/30/2016 - 15:52 Permalink
Bryan

In reply to by Deb (not verified)

Hi Deb,

Hi Deb,
It is possible to work while getting disability benefits, and also while working for cash.Your friend may not be committing fraud.

Thu, 03/31/2016 - 14:42 Permalink
ana nimous (not verified)

This is pretty serious stuff

This is pretty serious stuff here, please respond with tangible info as how to proceed. A man in his 40's, has been collecting 100% disability for many years now for a "broken back", as he stated to me 4 years ago, yet he mows lawns, loads unloads mower from his car, does other hard labor jobs etc... We all live in a large HOA, he has been elected a trustee, which is a political postion, that oversee's our money, some $250,000 a month, no joke. In our community we have a golf course, he golfs at least 3 days a week, and slams the driver of the tee, I mean crushes the ball. He put down on his application for trustee he is "retired", and parades around like he owns the place. It makes me sick, I have video recorded him mowing lawns, and loading mower, as well as playing an aggressive golf game. How do I proceed?

Wed, 03/30/2016 - 17:54 Permalink
T (not verified)

If someone is receiving

If someone is receiving disability benefits while receiving large sums of cash and gifts, for example cars and riding lawn mowers, through "donations" that aren't reported, would that be considered fraud? If you can live well above the means of the average worker, off the average workers back, do you really still need government assistance?

Wed, 03/30/2016 - 23:38 Permalink
Bryan

In reply to by T (not verified)

Hi T,

Hi T,
It would depend on what type of benefits that person is getting. If they are SSDI, those cash and gifts have no restrictions on them. If the person is getting SSI, then they may be committing fraud.

Thu, 03/31/2016 - 14:46 Permalink
Anonymous (not verified)

My sister in law is receiving

My sister in law is receiving SSD for herself and for her 4 kids. But two of the kid's aren't living there in the house they are living with other relatives and have been for a year. And she's isn't helping support them with the money she has coming in for them.
Two others people are struggling to clothes and feed her children and she's sitting back spending the money on herself and her Husband
I think the money should go where ever the kid's are living.

Why is that allowed

Thu, 03/31/2016 - 11:13 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi,

Hi,
If your sister's children are supposed to be getting SSDI benefits based off her record, or SSI benefits based off their own disabilities, those benefits are supposed to go to her children and not her. I would contact a local SSA office and have them change the payee for those benefits. You can find a list of them here:
http://www.disability-benefits-help.org/social-security-disability-loca…

Thu, 03/31/2016 - 14:51 Permalink
Renee (not verified)

So if I report someone who

So if I report someone who claims to be completely disabled and there are pictures of them on social media being completely normal will this be looked into? It's not a mental or psychological issue it's physical and they play it off very well to the Dr's and lawyer. Plus once I give my information will it ever be released to the person in question?

Thu, 03/31/2016 - 12:15 Permalink
Bryan

In reply to by Renee (not verified)

Hi Renee,

Hi Renee,
Even physical disabilities may not be visible to the naked eye, and it may be that this person's social media doesn't make it apparent that they are disabled because they might not want other people to know. However, you can choose to make yourself anonymous when you file a fraud report with the SSA.

Thu, 03/31/2016 - 14:54 Permalink
NTH (not verified)

Someone I used to work with

Someone I used to work with told me that her boyfriend was/is on disability for hurting his back at work (construction). She no longer works with me, but has now told me that her boyfriend owns the construction company and contracts the work out to other people. She is not working. They make enough money that they were able to take a 3 week vacation in the Bahamas. Is it considered fraud to collect benefits and contract construction work out like this? Or can he legally own the company and still get benefits as well? (Doesn't disability pay for people that can't work? If he's able to work and own that company, should he be getting benefits as well?) Is there a way to check if he still gets disability payments?

Thu, 03/31/2016 - 15:34 Permalink
Bryan

In reply to by NTH (not verified)

Hi NTH,

Hi NTH,
If he's getting SSDI benefits, then yes, he would be able to own the company and receive income from it, as long as it is "unearned income", that is income that he did not work to get. Profits from a business ( that you do not actively work at, but own) count as unearned income. Also, there is no way to check if he gets disability payments unless you get his written consent, as that information is kept confidential by the SSA.

Thu, 03/31/2016 - 15:45 Permalink
Jill (not verified)

I know someone who collects

I know someone who collects social security claiming they have anxiety. But they are always out and about going out to eat, going to the bar, constantly out with th public. Also they sell drugs. I feel this is horrible and this person is fully capable of working. There are so many other people out there that absolutely need social security and then there are those people who abuse it! What should I do but I want to remain anonymous?

Thu, 03/31/2016 - 20:47 Permalink
Michael (not verified)

My wife and I are currently

My wife and I are currently living with a man ( he is my mother boyfriend) who is collecting disability benefits for "depression" because his 26 yr daughter died 5 years ago from cancer. He refused to help my mom pay for anything, only on his self for lavish vacations, we have pictures of him going to wineries in Napa, sailing on a boat, judging bbq cook offs, vacations in Canada, Oregon and Hawaii. He even have a Handicap placard! Doesn't go see a psychologist for his "depression" because my mom is a nurse and helps him to fill out the forms and tells him what to write so he can continue receiving benefits. I asked him he needs to work and help around the house, he laughed at my face and said "why work when the stupid government is dumb enough to give me free money for saying I'm depressed". My wife and I lost 2 babies through miscarriage and my wife watched her mother die from cancer. WE both see a therapist for our depression,but never wanted to collect disability benefits because we both know can work. This man is verbally abusive towards us and my mother. He needs to be investigated now!

Thu, 03/31/2016 - 23:04 Permalink
April (not verified)

I want to know why SSI gives

I want to know why SSI gives people a check because the used meth. Being a meth head should not be a reason for getting SSI.
And if someone gets disability, do they have the same rules as someone on SSI? People who get SSI have to pay half the rent,groceries, utilities, garbage pick up. But I know a guy on disability and lives in a house that his sister owns and he pays no rent his sister lied and said he pays rent and he doesn't pay any rent. If you are on disability can you have other people live with you and they pay you and pay utilities?

Thu, 03/31/2016 - 23:35 Permalink
Bryan

In reply to by April (not verified)

Hi April,

Hi April,
Yes, SSDI and SSI have separate rules. In either case, you can live with someone and not pay rent. If they had SSI it would affect their benefits, however.

Fri, 04/01/2016 - 09:56 Permalink
Rosalie sanchez (not verified)

I know someone who is getting

I know someone who is getting Ssi.and collects money from a tenant.but doesn't report it.and just received a check from a assurance agent.for someone hitting her car.and she nevered reported it.what do I do?

Fri, 04/01/2016 - 07:51 Permalink
SLAk (not verified)

I am aware of someone who is

I am aware of someone who is collecting disability because they are physically unable to work, yet they get paid cash for mowing lawns...isn't this considered disability fraud? I am physically unable to work myself, have been treated by multiple doctors, had multiple surgeries and have attempted over and over to actually work a legitimate job, paying into the 'system' for over 30 years and yet, I have been turned down for benefits while someone who is obviously capable of manual labor is collecting for a 'physical' disability.

Sat, 04/02/2016 - 12:10 Permalink
Deanna

In reply to by SLAk (not verified)

Hi there,

Hi there,
If he or she does not report the cash to the SSA, then this could definitely be fraud. It would depend on the disability, however. If he was approved for a mental illness like bipolar disorder or anxiety, then mowing lawns may be an acceptable act. It would all depend on his case.

Mon, 04/04/2016 - 16:46 Permalink
Anonymous (not verified)

If someone is selling

If someone is selling Narcotic drugs and other controlled substances while receiving benefits and is making over 1200 a month is that considered fraud?

Sat, 04/02/2016 - 16:21 Permalink
Deanna

In reply to by Anonymous (not verified)

Hi there,

Hi there,
If anyone is making more than $1,200, they will not qualify for disability benefits. I would recommend reporting this person for fraud.

Mon, 04/04/2016 - 16:46 Permalink
Melinda cipriano (not verified)

I know a lady that draws SSI

I know a lady that draws SSI and works I know for a fact she was working two jobs at the same time , I don't however know what her disabilities are . But she has told me she is 100% disabled . I asked her about it and she says the social security office says she can work . She was making 300.00 a week from one job another she was making around 450.00 every two weeks . and another where she worked at a gas station making pizza and every thing else there was to do . and still draws full benefits , Does this seem right or should she be reported . Just wondering , Because she was doing the same job I do and I make a good living and able to care for my self just fine .

Sun, 04/03/2016 - 19:05 Permalink
Deanna

In reply to by Melinda cipriano (not verified)

Hi Melinda,

Hi Melinda,
With those payments, she could potentially still qualify for disability benefits, but it seems unlikely. It will also depend on her disability. If she has a mental illness, physical labor may be doable.

Mon, 04/04/2016 - 16:49 Permalink
Lizette (not verified)

How about if you're the

How about if you're the ex-girlfriend of someone receiving disabilitY, I don't care if he knows it was me that reporting him but I have proof that there is nothing wrong with him, is it better to go to the office or call it in.

Mon, 04/04/2016 - 16:47 Permalink
Deanna

In reply to by Lizette (not verified)

Hi Lizette,

Hi Lizette,
I am actually not sure of the best way to do this! I would recommend trying to call it in first because it can be pretty hard to schedule an appointment with the SSA. You typically can't just show up and try to report someone.

Mon, 04/04/2016 - 16:51 Permalink
Anne (not verified)

My sister-in-law who is 39

My sister-in-law who is 39 receives SSI disability. She receives around $900 a month. She is living with her parents without paying any rent or contributing to any of the utilities. Unfortunately, she is a drug addict and is now spending most of her money on street drugs as well as buying Percocet off the street. I was under the impression that the money she receives is to help her to support herself in terms of rent, utilities, food, etc. Since she's only using it for a little amount of food and illegal drugs, would this be considered fraud?

Mon, 04/04/2016 - 20:23 Permalink
Anonymous (not verified)

I know a family member who

I know a family member who got disability and says he can't work do too back....that's why he climbs latter's.cuts grass rides a bike re does houses over.and came out of his own mouth....man I need my fines paid off off by 2017. Or I'll stay on probation...he took him 5months to apply and 5months to receive money..wow is all I can say call his cell have investergators call and ask him to paint there house watch how fast his ass climbs a latter and rolls paint...smh

Tue, 04/05/2016 - 09:15 Permalink
Kay (not verified)

So my childrens father is

So my childrens father is currently taking me to child support court because he says he has PTSD from losing his father to a two yr battle with cancer and is in the process of getting disability..however in custody court he has failed 3 of his last drug tests with cocaine,alcohol,and marijuana..is he still going to be able to get disability,especially if there are posts in facebook showing him drinking beer in Daytona at bike week?

Tue, 04/05/2016 - 13:40 Permalink
Bryan

In reply to by Kay (not verified)

Hi Kay,

Hi Kay,
I would not be able to say if your children's father would be disqualified from getting disability benefits based off of his drug use, but the SSA does take drug use into account when considering a person's case.

Wed, 04/06/2016 - 09:42 Permalink
Lisa (not verified)

What if you know someone

What if you know someone applied for a child knowingly giving the incorrect birth fathers information

Tue, 04/05/2016 - 14:03 Permalink
Andrea (not verified)

Can someone own there own

Can someone own there own buisness that is functioning and they are working also and collect disability due to medical reasons

Wed, 04/06/2016 - 12:28 Permalink
Bryan

In reply to by Andrea (not verified)

Hi Andrea,

Hi Andrea,
Yes, a person may be able to own their own business while receiving disability benefits, but eligibility for benefits would depend on how much they earn, what type of benefits that they are getting, and whether the money from the business is counted as unearned income.

Wed, 04/06/2016 - 12:33 Permalink
Anonymous (not verified)

How can someone collect

How can someone collect benefits for disability claiming PTSD-that they are so afraid of another person and they cannot function through day to day life because of this persons actions against them-but in fact, nothing was ever done to them(can be proven), it was the person who is now collecting benefits who has been and continues to be the aggressor.(can be proven) This person is NOT afraid , and is a very smart high functioning individual who will threaten, manipulate, and/or abuse any power or advantage they can so they get what they want. Which in this case, money. (can be proven with multiple witness statements including direct family members)

Wed, 04/06/2016 - 14:15 Permalink
jlynnz (not verified)

I really need to talk to

I really need to talk to someone about this person I've known since 07 and he IS frauding more than disability, hes alot smarter than he acts and uses the mental disability as his excuse, he makes almost $100-150 a day scrapping metal, lots of people know him and how smart he is, i really need help cuz I want to report him. Your name will NOT be involved. Just need some questions answered.

Wed, 04/06/2016 - 14:53 Permalink
Deanna

In reply to by jlynnz (not verified)

Hi there,

Hi there,
You can always call the SSA at 1-800-772-1213 to discuss this matter. They can also point you in the right direction to help report him!

Wed, 04/06/2016 - 15:57 Permalink
Christy (not verified)

I know some one that is

I know some one that is collecting disability for back injury but he still works on the side lifting heavy things cutting yards and weeding to make extra money because they are addicted to drugs and pills. He goes to the Doctors and hospitals a lot and lies for refills on the pain medication. But also have a son that receives disability for what reason unknown to me but they use his check for drug purposes as well because they don't have a stable home for themselves or their children they even stay in their vehicle at times. Ain't the purpose for disability checks also a reason to have a home for the disabled persons.. This is just plain negligence and fraud ain't it.

Thu, 04/07/2016 - 14:18 Permalink
Christy (not verified)

In reply to by Bryan

How can I do a report on

How can I do a report on someone that doesn't have an address if they are homeless? I may have some information on the adult male but not on the son. Can't the SSA find out info on the son if they are supposed to be in the same household?

Thu, 04/07/2016 - 17:02 Permalink
Deanna

In reply to by Christy (not verified)

Hi Christy,

Hi Christy,
That might be hard to do. You could always report the fraud if you know the homeless man's Social Security number though.

Fri, 04/08/2016 - 09:12 Permalink

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