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

CORA MASON (not verified)

MY COUSIN HAS BEEN IN THE

MY COUSIN HAS BEEN IN THE HOSPITAL UNABLE TO TAKE CARE OF HER BUSINESS AND HER FRIEND IS WRITING CHECKS ON HER CHECK AND CLIAMING TO BE HER DAUGHTER. SHE DIED MAY 19, 2016 AND THE LADY IS STILL THERE LIVEING ON HER SECTION 8 AND DISABILITY.

Thu, 06/02/2016 - 19:28 Permalink
Bryan

In reply to by CORA MASON (not verified)

Hi Cora,

Hi Cora,
That does not sound good! I would call the SSA and let them know that this person died so that they can discontinue benefits for the deceased. You can call them at 1-800-772-1213

Fri, 06/03/2016 - 09:36 Permalink
Jerry O. (not verified)

I know someone who claims he

I know someone who claims he has back problems, gets a disability check for 2years now ,. Still works construction jobs for cash & cuts grass in his ditch with a push lawn mower takes him about 30minutes. I know my back hurts time to time but I push through it . But if my back hurt like his hurts so say I wouldn't attempt to push a lawn mower in a ditch

Fri, 06/03/2016 - 13:48 Permalink
Bryan

In reply to by Jerry O. (not verified)

Hi Jerry,

Hi Jerry,
That person may not be committing fraud, as it is possible to work while getting disability benefits, though he may have to report his income to the SSA if he does. Additionally, he may not have anyone else in his life to help him mow his lawn, and as such has to do it himself, even with back pain.

Fri, 06/03/2016 - 16:07 Permalink
Jean (not verified)

I know someone that says he

I know someone that says he lives with his father and he doesn't I know for a fact he sells his pain meds

Mon, 06/06/2016 - 19:17 Permalink
Bryan

In reply to by Jean (not verified)

Hi Jean,

Hi Jean,
That may be fraud, you may want to contact the SSA about that. You can call them at 1-800-772-1213.

Tue, 06/07/2016 - 09:56 Permalink
June (not verified)

I know someone who tells ssi

I know someone who tells ssi that they pay rent at a address that they don't they have lied bout their living arrangements Is that fraud

Tue, 06/07/2016 - 09:24 Permalink
Anonymous (not verified)

My boss currently pays an

My boss currently pays an employee at work under the table, because he receives ssd due to back injuries. The guy lifts 200+lb boulders every day and is blatantly defrauding the system. I'm concerned that reporting him may jeopardize my employment as a fellow employee. What step should I take first?

Tue, 06/07/2016 - 12:39 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
The SSA does not release the information of the people reporting fraud to the SSA. You can also make a report totally anonymously by sending a letter to the SSA without return address here:

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

Tue, 06/07/2016 - 13:28 Permalink
Jessica (not verified)

my boyfriend gets 1800 a

my boyfriend gets 1800 a month on disability for a neurological problem essential tremors. while he shakes allover the place and is slower to do laborjobs like he used to. my issue is that within 2 days of his check he spends it all on meth and gamerooms for him and his friends. then for 28 days he will commit crimes by stealing and scrapping, mostly shoplifting. he never has the money for his prescriptions to maintain his tremors cause he spends it on dope, which is a drug that acts on the centralnervous system that makes the tremors that much worse. is that fraudulent?

Tue, 06/07/2016 - 21:15 Permalink
Deb (not verified)

We have a person at our lake

We have a person at our lake home who told us he injured his neck and arm and is getting disability. Yet our security cam shows him lifting big rocks multiple times to build a large retaining wall, maneuvering a pontoon boat around his dock, pushing and pulling his mower up and down a steep hill, helping his son pull a boat trailer up and down the steep hill, among many other tasks He is living at the lake now enjoying his happy life and moves better than I do. Yet I just had hand surgery with a long recuperation period, and continue to work to fund this type of crap! No wonder our SS system is broke! Very disheartening! He is not mentally disabled as he can plan and plot better than I can and slams down ALOT of beer during the day. If he was taking meds he would not be able to use the alcohol.

Wed, 06/08/2016 - 09:48 Permalink
Bryan

In reply to by Deb (not verified)

Hi Deb,

Hi Deb,
Just because this person can do strenuous activity, does not mean he possesses the ability to do so for five days a week. Disability comes in many forms, and some are not readily apparent to the naked eye.

Wed, 06/08/2016 - 15:37 Permalink
Natalia (not verified)

i know a minor who is not

i know a minor who is not going to school but is getting ssi. Ad in the paper work it sates that he must be in school to receive the benefits is this fraud? and how would i report his absences over the phone. the evidence that i have is in paper form.

Wed, 06/08/2016 - 10:59 Permalink
Bryan

In reply to by Natalia (not verified)

Hi Natalia,

Hi Natalia,
This may be bad behavior on the part of that child, but it also might not be fraud as the minor is enrolled in school, even though they are often truant. Still, you can call 1-800-772-1213 if you need to report this information to the SSA.

Wed, 06/08/2016 - 15:27 Permalink
Elijah (not verified)

What if a man on social

What if a man on social security disability who isn't suppose to work is still working and the llc company he runs he put in his wife's name? And they tell their kids to lie about who really runs the company? Is there anything that can be done about this. The people responsible are also emotionally and mentally unstable and their children are suffering because of it. Should I report this? And if so to who?

Wed, 06/08/2016 - 18:00 Permalink
Mate (not verified)

Mainland or verbally admitted

Mainland or verbally admitted that she receives benefits from Uncle Sam so she told me to pay her in cash not money orders I have been here 2 years and I feel that that is not right and I had to say something should I report this I'm paying $600 a month Faithfully

Wed, 06/08/2016 - 19:24 Permalink
Bryan

In reply to by Mate (not verified)

Hi Mate,

Hi Mate,
They may not be committing fraud, as it is possible to work and still receive disability benefits. However, if they are not reporting the money, they may be committing fraud.

Thu, 06/09/2016 - 10:23 Permalink
Mary (not verified)

If someone is collecting

If someone is collecting disability and has received $10,000.00 last year from a dying relative and then an inheritance this year in the amount of about $23,000.00 do they have to let SSI know of this extra money they have come into? There is documentation for all of the money. Is this considered fraud?

Thu, 06/09/2016 - 02:03 Permalink
Bryan

In reply to by Mary (not verified)

Hi Mary,

Hi Mary,
This would be fraud if the person is getting SSI disability benefits as those are income based. If they are getting SSDI benefits, then they may not be committing fraud.

Thu, 06/09/2016 - 09:07 Permalink
Anonymous (not verified)

What if the person is

What if the person is dranking everyday and doing coke and crack?

Thu, 06/09/2016 - 11:33 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
It may be bad, but drug and alcohol use does not disqualify someone from SSI or SSDI benefits, unless the disability that they have is aggravated by alcohol or drugs.

Thu, 06/09/2016 - 15:56 Permalink
lindsey (not verified)

my grandson lived with me for

my grandson lived with me for a year while his father collected his ss check. Social Security knew he was doing this and nothing happened to him. I paid for the childs needs for a year and the father never offered me a dime for his child care. Can I get reinburst for that money that was suppose to go to the child

Fri, 06/10/2016 - 14:23 Permalink
vmw

In reply to by lindsey (not verified)

Hi there,

Hi there,

You may be able to get reimbursed for the money that was suppose to go to the child. I would contact SSA directly at 1-800-772-1213 for more information.

Fri, 06/10/2016 - 14:54 Permalink
Jeff (not verified)

I can't understand why I

I can't understand why I see this guy guy every day working on cars, riding go-carts, drinking and getting drunk on a daily basis and still collecting disability benefits. I know this guy can work and the taxpayers have to flip the bill. It just is not right

Fri, 06/10/2016 - 20:01 Permalink
Bryan

In reply to by Jeff (not verified)

Hi Jeff,

Hi Jeff,
It's definitely frustrating! However, not every disability is physical in nature, and neither are they all visible to the naked eye. Additionally, just because he is able to work on cars, doesn't necessarily mean he can do that as a job.

Tue, 06/14/2016 - 10:05 Permalink
Edgard Soetoro (not verified)

I know some one

I know someone, who have ss and food stamps, is renting her basement for $600 month, you could made an investigation if you desire....

Mon, 06/13/2016 - 13:58 Permalink
Bryan

In reply to by Edgard Soetoro (not verified)

Hi Edgard,

Hi Edgard,
We are not affiliated with the SSA, and as such we cannot investigate this. However, that person that you know may not be doing anything wrong, it is possible to receive unearned income and still receive SSDI benefits. If she was on SSI, that may be fraud if she is not reporting the income.

Tue, 06/14/2016 - 09:59 Permalink
Clarendia silmon (not verified)

I know someone who checks are

I know someone who checks are not being used the right way just trying to help

Mon, 06/13/2016 - 19:06 Permalink
Bryan

In reply to by Clarendia silmon (not verified)

Hi Clarendia,

Hi Clarendia,
To report any misuse of benefits, you can call the SSA at 1-800-772-1213, or you can send a letter to :
Social Security Fraud Hotline
P.O. Box 17768
Baltimore, Maryland 21235

Tue, 06/14/2016 - 09:57 Permalink
Ray (not verified)

My question is this... Is it

My question is this... Is it illegal to work under the table (off the books) at a waitressing job and collect temporary disability? Is this known as SS Fraud? What if the person is section 8 or can't afford any medical health bills relating to cancer? What if they are working only 12 hours a week? Is this all illegal?

Tue, 06/14/2016 - 09:12 Permalink
Bryan

In reply to by Ray (not verified)

Hi Ray,

Hi Ray,
It is not fraud to work while collecting SSI or SSDI, however you do have to report the income to the SSA, and you do have limits on the income that you would be able to earn.

Tue, 06/14/2016 - 09:48 Permalink
Ray (not verified)

In reply to by Bryan

What if they do not report

What if they do not report the income to SSA continue to work and also continue to collect temporary disability?

Tue, 06/14/2016 - 15:27 Permalink
Bryan

In reply to by Ray (not verified)

Hi there,

Hi there,
That may be fraud if they are also collecting SSI or SSDI benefits, as the SSA does not offer temporary disability benefits.

Wed, 06/15/2016 - 09:25 Permalink
Anonymous (not verified)

In reply to by Bryan

also what if the income is

also what if the income is not being reported to the SSA and they keep working under the table and reporting as if they have no job at all while continuing to collect? that's still not illegal?

Tue, 06/14/2016 - 15:35 Permalink
roromi39 (not verified)

My neighbor has been

My neighbor has been collecting SSDI for years. But she also has been common law married to a man for many years who worked full time and is now retired collecting pension, etc. Is that allowed?

Tue, 06/14/2016 - 09:31 Permalink
Bryan

In reply to by roromi39 (not verified)

Hi there,

Hi there,
It is! SSDI is based off of your work record, it's not a needs based program so their marital status, and the income of any spouses, common law married or not, does not factor in to their eligibility for benefits.

Tue, 06/14/2016 - 09:46 Permalink
Anonymous (not verified)

I know someone on disability

I know someone on disability who is working full time and the shipyard is owned by his brother-in-law who makes the check out to the wife

Tue, 06/14/2016 - 14:24 Permalink
Roger (not verified)

I know someone who's

I know someone who's been collecting disability for years and also works full time under the table for cash. I came here to report them, thinking that I could just provide the info, but it sounds like if I get one tiny detail wrong then I could be the one getting in trouble. I guess he gets to keep working and having tons of extra cash. Lucky him.

Tue, 06/14/2016 - 18:59 Permalink
Sarah (not verified)

I know someone who has heart

I know someone who has heart problems and is waiting to get approved for disability but she is a heavy cigarette smoker and heavy drinker. My nieces also found a bag of Marijuana and a pot pipe under her pillow. Isn't that a little ridiculous?

Thu, 06/16/2016 - 12:24 Permalink
Deanna

In reply to by Sarah (not verified)

Hi Sarah,

Hi Sarah,
Because drinking and smoking is legal, the SSA cannot make disability recipients stop drinking or smoking. I cannot speak for the pot. If she is spending her SSA benefits on illegal drugs, that may be fraud.

Fri, 06/17/2016 - 14:58 Permalink
Anonymous (not verified)

I know someone who is using

I know someone who is using disability. Works a waitressing job and works for a company called Pampered Chef. Waitressing jobs are very demanding both mentally and physically. Before those two she worked for a lawyer office company and quit as soon as she got a letter after 5 months of being there claiming her disability would be shut off. Waitressing jobs do not require cash tips to be reported. She draws $750 a month plus works these two jobs, one being demanding while she drives a brand new car. I'm not sure how to report her because she draws disability over nerves in her hand yet waitresses! I also am unsure how to report her because when I tried online, it asked for her case number which I am unsure of. They needs to be investigated.

Thu, 06/16/2016 - 12:27 Permalink
Deanna

In reply to by Anonymous (not verified)

Hi there,

Hi there,
I believe the Pampered Chef is a company that sells cooking products? If she is not reporting her earned income, that is definitely disability fraud. If she is reporting her income, it may not be fraud at all.

Fri, 06/17/2016 - 14:59 Permalink
Paula (not verified)

What if somebody is supposed

What if somebody is supposed to be in a wheel chair can't work but has driven himself for an 18 hr trip and has been observed walking around without a problem and loading a truck with items?

Thu, 06/16/2016 - 13:24 Permalink
Deanna

In reply to by Paula (not verified)

Hi Paula,

Hi Paula,
Many people in wheelchairs are still able to drive, but walking seems pretty suspicious. I would consider reporting that if this person is walking around and does not typically require a wheelchair.

Fri, 06/17/2016 - 15:00 Permalink
Maria (not verified)

I know a person that gets

I know a person that gets disability and uses it to smoke crack and drink beer how do i report this matter it's not right for this person to misuse benefits and also sales her food stamps

Sat, 06/18/2016 - 02:42 Permalink

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