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  • Social Security, created in the United States in 1935, is a lifesaver for those who are severely injured, unemployed, or otherwise financially burdened. However, the availability of money makes the Social Security system a popular target of thieves.

    Definition

    Social Security fraud is a crime against the U.S. government and involves a person illegally receiving money from a Social Security program, such as disability benefits.

    Types of Fraud

    Fraud is committed when a false statement is made on a claims form or when changes in circumstance that would affect eligibility are concealed. Also, using another person's Social Security information to receive benefits is fraud, according to the Social Security Administration.

    Financial Impact

    Crimes of fraud in which a person illegally obtains Social Security benefits cause millions of dollars of losses for the Social Security Administration.

    Identification and Prosecution

    Because the Social Security system is complex and available to just about anyone, the administration relies on reports by concerned citizens and other agencies to identify and prosecute fraud cases.

    Fraud Penalty

    As a felony, Social Security fraud is punishable by up to five years in prison and a fine up to $250,000, according to the Department of Justice. Also, benefits paid because of fraud usually have to be repaid to the Social Security Administration.

    Source:

    Fraud Hotline and Reporting Information

    United States Department of Justice: Social Security Fraud Information

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