Trump and Musk Overstate Social Security Fraud Claims

18 Feb at 10:00 pm

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Trump and Musk Overstate Social Security Fraud Claims \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump and Elon Musk claim millions of centenarians are fraudulently receiving Social Security benefits, but official data contradicts their statements. While improper payments exist, Social Security reports show less than 1% of payments are in error, and most go to living recipients. Experts warn that misinformation may mislead Americans into thinking Social Security’s financial issues have an easy fix.

False Claims: Trump and Musk falsely allege that millions of people over 100 years old receive improper Social Security benefits.
Reality Check: A Social Security Inspector General report confirms only $71.8 billion in improper payments from 2015-2022—less than 1% of total benefits paid.
COBOL System Quirks: Outdated Social Security software sometimes defaults missing birthdates to the 1800s, creating errors in records, not payments.
Medicaid vs. Social Security Fraud: Experts say Social Security errors are minimal compared to high improper payment rates in Medicaid.
Misinformation Concerns: Economists warn that Trump and Musk’s claims may mislead Americans into believing Social Security’s funding issues can be fixed without tax hikes or benefit cuts.
White House Response: The administration stands by its fraud investigation efforts, pointing to past improper payments but avoiding specifics on the exaggerated numbers.

Deep Look

Trump and Musk Claim Millions of Dead People Receive Benefits

The Trump administration is making misleading claims about Social Security fraud, falsely stating that millions of centenarians and even people over 300 years old are receiving benefits.

President Donald Trump and his top adviser, billionaire Elon Musk, have repeatedly suggested that a massive fraud scheme is draining Social Security funds. Musk described it as a “HUGE problem”, while Trump claimed that removing these improper payments would restore Social Security’s financial strength.

Trump at a Florida press briefing:
“We have millions and millions of people over 100 years old receiving Social Security benefits. They’re obviously fraudulent or incompetent.”

Musk on X:
“Maybe Twilight is real and there are a lot of vampires collecting Social Security.”

However, Social Security Administration (SSA) data and government watchdog reports contradict their claims.

How Big Is Social Security Fraud Really?

While improper payments do occur, they represent less than 1% of all Social Security benefits paid.

Key Facts from SSA Reports:

From 2015 to 2022, SSA paid out $8.6 trillion in total benefits.
During this time, $71.8 billion in improper payments were identified—less than 1% of total benefits.
The majority of these were overpayments to living recipients, not dead people receiving benefits.
In early 2024, the U.S. Treasury recovered $31 million in improper payments made to deceased individuals—a fraction of what Trump and Musk suggest.
SSA automatically halts benefits to anyone over 115 years old, preventing fraudulent claims from extreme-age individuals.

Why Do Some Social Security Records Show 200-Year-Old Recipients?

A quirk in SSA’s outdated COBOL-based software contributes to the confusion.

SSA’s system defaults missing birthdates to reference points over 150 years ago.
This results in millions of Social Security numbers listed as “active” despite their holders being deceased.
However, these records do not indicate payments—they are database anomalies, not fraud cases.

A 2023 SSA Inspector General report found that 18.9 million Social Security numbers belonged to people born in 1920 or earlier but were not marked as deceased. This does not mean they were receiving payments—only that SSA never updated their records.

Updating the database would require over $9 million in modernization costs, which SSA has not prioritized.

Experts Warn of Misinformation About Social Security

Economists and public policy experts warn that Trump and Musk’s misleading statements could mislead Americans about the real financial challenges facing Social Security.

Chuck Blahous, Mercatus Center, George Mason University:
“Two cheers for Elon Musk if he can root out and put a stop to improper payments. But Social Security would be near the bottom of the list of programs with fraud issues.”

Sita Nataraj Slavov, Schar School of Policy and Government:
“This claim may mislead people into thinking there’s an easy fix to Social Security’s financial problems. That’s simply not true.”

Experts note that Medicaid improper payment rates are significantly higher than those in Social Security, making Musk’s focus on SSA questionable.

White House Defends Fraud Investigation, Avoids Addressing Exaggerated Claims

The White House has doubled down on its Social Security fraud investigation, though it has not directly supported Trump and Musk’s exaggerated numbers.

Karoline Leavitt, White House spokesperson:
“A previous investigation revealed the SSA paid at least $71.8 billion in improper payments. The administration is working to find even more waste, fraud, and abuse.”

While the administration acknowledges some improper payments, it has not provided evidence supporting the claim that millions of centenarians are receiving benefits.

What’s Next? Social Security Under Political Spotlight

With Trump’s re-election campaign underway, Social Security will remain a key political issue. However, experts emphasize that:

Stopping improper payments won’t fix Social Security’s financial challenges.
The program faces a long-term funding gap that likely requires higher taxes or benefit reductions.
Focusing on exaggerated fraud claims could distract from real policy solutions.

Musk’s Department of Government Efficiency (DOGE) is expected to continue investigating SSA and other federal programs, but critics say its lack of transparency and exaggerated claims undermine its credibility.

As the 2024 election nears, expect more debate over Social Security reform, but Americans should be wary of misleading claims about fraud and quick fixes.