An internal memo from the Social Security Administration (SSA), sent on March 13, 2025, has raised alarms concerning proposed changes to the benefits claims process. The memo, authored by Acting Deputy SSA Commissioner Doris Diaz, is intended to mitigate "fraud risks" but has sparked concerns about its potential effects on millions of Americans who rely on these benefits.
Elon Musk, speaking on Fox Business, inaccurately claimed 10% of federal expenditures are tied to Social Security fraud. Contrary to his assertions, Social Security fraud accounts for about $9 billion annually—less than 1% of total benefits and only 0.1% of the federal budget. Most improper payments result from beneficiaries failing to update their records, rather than from criminal fraud.
The Diaz memo proposes significant changes to the identity verification process for claims made over the phone. Under the new regulations, customers unable to utilize internet identity proofing will be required to visit local SSA offices to present documentation. Currently, 40% of all claims are processed via telephone, allowing applicants to verify their identity without needing to go to the office. The memo anticipates it could require between 75,000 to 85,000 additional visitors to SSA offices each week, creating logistical issues for the agency.
Acting SSA Commissioner Leland Dudek announced plans to lay off approximately 7,000 workers—around 12% of the agency's total workforce. This move coincides with the closure of numerous field offices, which already makes it difficult for staff to accommodate existing demand. Current figures indicate around 119,128 visits per day on average to SSA offices, and an additional 85,000 weekly visits could represent about a 14% increase.
Notably, the Diaz memo concedes the proposed changes could lead to "service disruption," "operational strain," and "budget shortfalls," with specific regard to vulnerable populations who may not have the means to travel or access the internet. A source from the SSA who spoke with Popular Information remarked, "there are no significant concerns about fraud at intake" since no benefits are being disbursed currently. Instead, the new requirements appear to introduce barriers aimed at overwhelming the system.
On the day before the Diaz memo was issued, the Washington Post reported on the SSA's consideration to end its phone service for claims processing. While the agency released statements denying these reports, the memo outlines steps to implement changes without formally terminating telephone services. Customers can still submit claims via phone, but those claims will be rendered "unverified" until they complete identity verification either through the internet or during an office visit.
Former SSA officials have echoed similar sentiments, noting such changes could "cripple field office operations already strained by delays." Proponents of the changes advocate them as necessary to combat fraud, yet critics assert the costs and operational issues arising from the implementation would far outweigh any benefits. Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, pointedly stated, "Forcing all those folks to come to the office would, in essence, break the agency."
There is widespread concern from various quarters, including former SSA Commissioner Martin O'Malley, who noted, "We are already seeing service timelines skyrocket, but then you're going to see intermittent interruptions of the processing and claim system." The potential consequences could culminate in difficulty for millions of Americans depending on timely benefits.
The political angle to this story is equally important. Last week, Senator Alex Padilla (D-Calif.) drew attention to how Trump’s staff cuts at the SSA jeopardize beneficiaries' access to services. Despite reassurances from the White House emphasizing there would not be cuts to benefits, pressure mounts as the SSA’s efficacy decreases due to staff reductions and closures.
Analysts have remarked on the precarious position, emphasizing the visible risks created by employing policies championed by figures like Musk, who recently called Social Security "the biggest Ponzi scheme of all time." Democratic representatives, including Padilla, have pointed out the devastating ramifications of potentially having benefits delayed due to staffing shortages. Padilla cautioned, "Short of an act of Congress, there is not an easy way to cut Social Security benefits," but cutting staff could lead to chronic delays.
According to reports from the agency’s inspector general, improper payments over the past years amounted to approximately $71.8 billion, or just 0.84% of exchanged benefits, which underlines the existing safeguards against fraudulent claims.
This tumultuous backdrop finds itself complicated by the appointment of Frank Bisignano as the new SSA commissioner, nominated by Trump. His upcoming confirmation hearing is set to signal how the current administration will approach Social Security's challenges. Previously, former SSA Commissioner Michael Astrue expressed optimism for Bisignano if only based on the current state of affairs, estimating he couldn't possibly be worse.
Bipartisan concerns echo as lawmakers from both sides of the political spectrum brace for the impending changes facing the SSA. The National Academy of Social Insurance, which recently released statements from former high-ranking officials, has noted the potential upheaval posed to millions of Americans who will feel the brunt of these policy changes.
Against this backdrop, the future of accessible Social Security benefits hangs uncertain, and many Americans fear the upcoming fiscal and operational changes could turn the safety net they rely on increasingly frayed. The ramifications of these decisions will inevitably ripple through the lives of retirees, the disabled, and those with the fewest resources. Without careful scrutiny, the system could disadvantage countless hard-working Americans.
