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.

Additional Resources

Blog comments

TDuncan (not verified)

My sister in law is on ss

My sister in law is on ss disability for a back surgery she had through workers comp. she draws a check and i have video of her lifting heavy poles, taking down a barn, moving a fridge and stove by herself. can she do this and still draw a check?

Thu, 04/07/2016 - 15:03 Permalink
Tom c (not verified)

What if a person on ssdi

What if a person on ssdi benefits , and gets food stamp bennies too ,works under the table for cash only pay, always in the bar drinks like a fish, he brags about making $25-$30 per hour doing concrete work which everybody knows is very physical hard work, if this guy is healthy enough to do this type work I think this is fraud , he is ripping off SS, how do I report this guy?

Thu, 04/07/2016 - 20:22 Permalink
Anthony (not verified)

I know 2 women who have been

I know 2 women who have been running a business under the table. They use there home (mothers home) and make the product in the garage. Than sell it at trade shows ect. They also charge sales tax but do not pay taxes. They do not have a real business because they do not want to report income and lose any of their SS disability.

Fri, 04/08/2016 - 21:19 Permalink
Bryan

In reply to by Anthony (not verified)

Hi Anthony,

Hi Anthony,
If they are both receiving disability benefits and they are reporting the income to the SSA, then it is possible that they may not be defrauding the SSA. It is possible to work and receive disability benefits at the same time.

Mon, 04/11/2016 - 15:14 Permalink
Bonita (not verified)

Can I report someone that is

Can I report someone that is applying for disability? I know exactly what they are applying for I know what they say his restrictions are supposed to be. He gets medication and doesn't take it he gets rid of it when he goes to his pain management doctor. He is only supposed to lift 50 pounds. He says he cant drive for long periods of time, he cant walk for long periods of time or sit for long periods of time. There isn't anything wrong with him anymore his injury has healed. You cant get disability for pure laziness. Please let me know as soon as possible I want to turn this in on Monday if I get a reply.

Sat, 04/09/2016 - 03:51 Permalink
Bryan

In reply to by Bonita (not verified)

Hi Bonita,

Hi Bonita,
If this person is able to work the SSA would deny his claim. Also, it's very possible that he still has a disability, and he forgoes the pain medication because he does not want to use it for various reasons. If you are sure that he is attempting to defraud the SSA, I would contact the SSA and pass the information on to them. However, I cannot say whether this person's claim is legitimate or not because I do not know any of the particulars.

Mon, 04/11/2016 - 10:01 Permalink
keren (not verified)

what if I know husband and

what if I know husband and wife, husband got injured couple years ago...now he's having Disability benefits. he showed that he doesn't not make any money because of the injury and put his wife on welfare benefits. he is still working full time at the restaurant and get paid in cash. New jersey
what kind of info they will ask me? is it fraud report?

Sun, 04/10/2016 - 20:27 Permalink
Bryan

In reply to by keren (not verified)

Hi Keren,

Hi Keren,
You would have to give some information to the SSA like name, contact information, ect, and you can choose to report anonymously as well. If you believe this person is defrauding the SSA, it would be a fraud report. However, I'd like to mention that it is possible to work while receiving disability benefits, so this person may not be doing anything wrong.

Mon, 04/11/2016 - 10:05 Permalink
Steve (not verified)

How can someone get

How can someone get disability because of back problems and be a voluntary firefighter in the state of Kentucky

Mon, 04/11/2016 - 10:03 Permalink
Bryan

In reply to by Steve (not verified)

Hi Steve,

Hi Steve,
You can volunteer while getting disability benefits, but if you are performing activities that the SSA determined that you are unable to do for work while volunteering, the SSA may determine that you are no longer disabled.

Mon, 04/11/2016 - 15:17 Permalink
Sos (not verified)

They need to look in on these

They need to look in on these ppl that gets ssi and working and not reporting that there working I wish someone can get me a number to the rome,ga. Office

Mon, 04/11/2016 - 18:26 Permalink
Williams. (not verified)

I know someone who is on

I know someone who is on disability, is a sex offender that sits at home all day smoking weed. As soon as his money gets in he spends it on alcohol, weed, etc, and hides out in his garage for the weeks that the money lasts. He hasn't worked in years due to his epilepsy but hasn't had a active seizure in over 5years and will proudly admit that he hasn't and loves not working. He plays the system for other things as well. Is that considered fraud ? He's getting money handed to him for drugs and alcohol . he brags about how he literally does nothing all day and still makes more money then his son who's going to school and working his butt off.

Mon, 04/11/2016 - 22:24 Permalink
Bryan

In reply to by Williams. (not verified)

Hi Williams,

Hi Williams,
This may or may not be fraud, it would depend on if this person is still considered disabled by the SSA's definition.

Tue, 04/12/2016 - 10:34 Permalink
rb (not verified)

what if I know someone who is

what if I know someone who is drawing disability and is working and using another persons social security # and that person is at another place working at the same time this lady is using her social security # would this be considered fraud?

Tue, 04/12/2016 - 14:17 Permalink
eddie (not verified)

I know somebody that has a

I know somebody that has a full time job and had had it for a few years and just recently recieved back pay. This person is a thug and does meth and coke. I know because ive seen him do it.

Tue, 04/12/2016 - 14:41 Permalink
Bill M (not verified)

Hello, I have some questions

Hello, I have some questions regarding ss benefits fraud.
There is a popular youtube channel and he has stated on his channel and his personal facebook that he has been collecting benefits since 2011. His claim was for suffering from menieres disease. During this time he has still been earning income from writing science fiction from home and youtube revenue while still collecting benefts. He goes as far as show workout videos of him lifting in excess of 500 lbs on his channel every week. Is'nt this fraud?

Tue, 04/12/2016 - 15:34 Permalink
Bryan

In reply to by Bill M (not verified)

Hi Bill,

Hi Bill,
This may not necessarily be fraud because it is possible to work while receiving SSI or SSDI benefits, and I do not know the particulars of his case.

Tue, 04/12/2016 - 16:20 Permalink
Shawn (not verified)

In reply to by Bill M (not verified)

As a YouTuber, I will tell

As a YouTuber, I will tell you this much the money we make is not that much and every cent we recieve is reported to the irs and SS.

Sun, 09/04/2016 - 13:14 Permalink
Bryan

In reply to by Shawn (not verified)

Hi Shawn,

Hi Shawn,
Thank you for sharing you experience! It's true, you can be considered disabled by the SSA and also work at the same time.

Tue, 09/06/2016 - 10:52 Permalink
Dorothy (not verified)

Does Social Security check

Does Social Security check social media like face book before making a decision on a claim to see if there are photos of an applicant doing anything they claim they can't due to a physical disability?

Tue, 04/12/2016 - 15:57 Permalink
Bryan

In reply to by Dorothy (not verified)

Hi Dorothy,

Hi Dorothy,
As we are not affiliated with the SSA, I would not be able to say if they check social media before making a decision. Also, those photos could have been taken prior to becoming disabled.

Tue, 04/12/2016 - 16:22 Permalink
Lynsey (not verified)

what if someone is recieving

what if someone is recieving disability for a injury on the foot but is able to ride dirt bikes and supposedly work caterings to where you have to stand and is paid under the table and doesnt claim that her husband also makes money and he may be making it under the table.

Tue, 04/12/2016 - 18:35 Permalink
Bryan

In reply to by Lynsey (not verified)

Hi Lynsey,

Hi Lynsey,
You may want to contact the SSA, you can reach out to them at 1-800-772-1213 to let them know about this.

Wed, 04/13/2016 - 09:22 Permalink
Bryan

In reply to by Lynsey (not verified)

Hi Lynsey,

Hi Lynsey,
That person may be reporting that cash income to the SSA, and depending on what type of benefits they are getting, they may not have to report their husband's income. I would not be able to say if that person is committing fraud.

Wed, 04/13/2016 - 09:39 Permalink
T.L.E. (not verified)

What if someone is married to

What if someone is married to someone in one state, received SSI from the state to take care of the disabled husband but has moved to another state and has shacked up with an older man. None of the money helps to take care of her husband and she has weaseled her way into getting half-a-million dollars when the older man passes away. The one that she is not married to. I really need some advice here. I am concerned daughter and I do not think any of this is right.

Wed, 04/13/2016 - 06:39 Permalink
Anonymous (not verified)

how long before someone

how long before someone actually answers the phone?

Wed, 04/13/2016 - 12:30 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi there,

Hi there,
It generally depends on the call volume and their level of staffing.

Wed, 04/13/2016 - 12:33 Permalink
Jen (not verified)

I think my kids dad is trying

I think my kids dad is trying to claim our two kids to get money for them on his disability, but he don't live with them or has even support them since they were born I take care of them . I don't know he can do this you would think he would have to show proof that they live with him at leased it'd be pretty messed up for him to get money for kids he has nothing to do with.

Wed, 04/13/2016 - 14:24 Permalink
Bryan

In reply to by Jen (not verified)

Hi Jen,

Hi Jen,
Any benefits that your children's father applies for that are intended for the children are supposed to go towards those children. So, if he is approved for those benefits, it might be a good idea to contact the SSA and have their representative payee changed to someone who would be more willing to use those benefits for the children. The SSA's number is 1-800-772-1213.

Wed, 04/13/2016 - 14:36 Permalink
amanda (not verified)

I know someone who receives

I know someone who receives ssd and told ss that her and her husband r divorced and he dosent live there but he does. can she get in trouble for it

Wed, 04/13/2016 - 16:42 Permalink
Bryan

In reply to by amanda (not verified)

Hi Amanda,

Hi Amanda,
If she's getting SSDI benefits,then her marital status would not be relevant because those benefits are based off of work records. If she is getting SSI benefits, then yes, that may be fraud because SSI is based of income and resources.

Thu, 04/14/2016 - 09:47 Permalink
YankeeDoodle (not verified)

My neighbor is on ssdi, she

My neighbor is on ssdi, she owns her house but is putting it up for rent in the next couple of weeks to move in with her elderly mother. Is the rent she receives considered income and would it need to be reported?

Wed, 04/13/2016 - 19:07 Permalink
Bryan

In reply to by YankeeDoodle (not verified)

Hi YankeeDoodle,

Hi YankeeDoodle,
IF they are on SSDI, then no. There is no limit for unearned income for SSDI recipients.

Thu, 04/14/2016 - 09:38 Permalink
Patricia (not verified)

I know someone collecting

I know someone collecting disability for a hip disease but is working and advertising his construction company and a 24 hour towing and lockout service.. And I have pictures of the advertisements yet he has a handicap placard.. Isn't this fraud??

Wed, 04/13/2016 - 21:53 Permalink
Bryan

In reply to by Patricia (not verified)

Hi Patricia,

Hi Patricia,
It is possible to work (within the SSA's limits) and own a business and still get SSI or SSDI payments. Additionally, being in an advertisement does not mean that a person is able to work, or that they are not disabled.

Thu, 04/14/2016 - 09:31 Permalink
Patricia (not verified)

In reply to by Bryan

I saw him working and he

I saw him working and he claims through disability that he cannot work due to his pain.. Yet he does everything like he's perfectly fine..

Fri, 04/15/2016 - 00:31 Permalink
Bryan

In reply to by Patricia (not verified)

Hi Patricia,

Hi Patricia,
It's possible that this person's pain is not readily apparent because they are managing it, and it is possible to work while receiving disability benefits, within the SSA's limits.

Fri, 04/15/2016 - 10:37 Permalink
Dee (not verified)

I just found out my ex is

I just found out my ex is applying for Social Security Disability because he says he has mental issues and is a drug addict. He has 4 kids with 4 different mothers and doesn't pay child support. He has gone to jail many times but I believe he is using this as an excuse to get out of paying child support. My daughter was the first child born over 25 years ago and he owes me over 70, 000 in back child support. I can't believe he is going to get away with not paying support yet again, because his disability can't be taken for support.. this system is so wrong!

Thu, 04/14/2016 - 09:05 Permalink
Anonymous (not verified)

I know some one who gets a

I know some one who gets a disability check in Arkansas. He also gets up everyday and goes to work. Cash money or pulls permits under someone else's name so he don't show any other income. What can be done about this?

Thu, 04/14/2016 - 11:11 Permalink
Bryan

In reply to by Anonymous (not verified)

Hi,

Hi,
I would not be able to say that this person is committing fraud because I do not know all the details, but it is possible that this person may not be committing fraud as you can work while receiving disability benefits. Regardless, if you feel this person may be committing fraud, I would contact the SSA at 1-800-772-1213 or you can also file a report at this website:
https://oig.ssa.gov/report-fraud-waste-or-abuse/fraud-waste-and-abuse

Thu, 04/14/2016 - 11:28 Permalink
Dennis (not verified)

I know someone who was hurt

I know someone who was hurt in a swimming accident about 30 years ago. He is in a wheelchair, and does not have a lot of use with his hands. However, he has been driving his own vehicle (van) for about 20 years and works in his business about 70 or more hours a week, 7 days a week. He deals with the public, speaks clearly, and uses a computer. He put the business in his ex-wife's name and does not get a paycheck, but gets the money from "his" business, under the table. He has been getting social security disability since the accident over 30 years ago and has been working for the last 20 years. Is this legal?

Thu, 04/14/2016 - 13:13 Permalink
Whitney (not verified)

I know someone that receives

I know someone that receives SSI benefits and is working and getting paid under the table. He earns $130 a day where he works. I want to report the person but I don't want to get myself in trouble if it can't be proven. What should I do?

Thu, 04/14/2016 - 19:16 Permalink

Add new comment

Find Out If I Qualify for Benefits!