The U.S. Department of the Treasury has taken a major step in cracking down on fraudulent federal payments. In just five months, a pilot program aimed at identifying improper Social Security payments has successfully recovered more than $31 million. The payments, which were mistakenly sent to deceased individuals, highlight a long-standing issue with federal disbursement systems.
This success comes thanks to the Treasury’s recent access to the Social Security Administration’s (SSA) Full Death Master File—a massive database containing information on over 142 million deceased individuals. The pilot program began in December 2023, after Congress granted the Treasury temporary access for three years to help combat fraud and protect taxpayer money.
How the Program Worked
By cross-checking government payment records with death certificates from the SSA, the Treasury’s Bureau of Fiscal Service quickly identified payments sent to people who had already passed away. This proactive approach allowed them to reclaim the funds before they could be misused further.
According to Fiscal Assistant Secretary David Lebryk, this is just the beginning. The Treasury anticipates recovering over $215 million in fraudulent or improper payments by the time the program ends in 2026.
Why This Matters
Improper payments have been a long-standing issue, costing the government billions of dollars each year. Fraudulent payments to deceased individuals are particularly difficult to track without access to reliable death records. Now, with this temporary access, the Treasury is proving that effective monitoring can save millions—and possibly much more.
Calls for Permanent Access
With early success already being seen, Treasury officials are pushing for permanent access to the SSA’s death database. Lebryk argues that this would “significantly reduce fraud, improve program integrity, and better safeguard taxpayer dollars.”
The data suggests that without ongoing access to these records, future fraudulent payments could go unnoticed or take longer to recover. Permanent access would make it easier for the Treasury to prevent fraud before payments are sent out, rather than trying to claw back funds after the fact.
A Broader Fight Against Government Waste
This pilot program fits within a larger effort by the government to reduce waste and improve efficiency. Former President Donald Trump recently appointed Elon Musk and Vivek Ramaswamy to lead a special task force called the Department of Government Efficiency (DOGE). Their mission? To review federal spending, cut down on unnecessary expenses, and close loopholes like those exposed by the Treasury’s pilot.
While Musk and Ramaswamy’s task force focuses on broad reforms, programs like the Treasury’s pilot show how targeted efforts can yield major results in a short period of time. With $31 million already back in government hands, the question now is: how much more can be saved if the right resources are made permanent?
As discussions continue on Capitol Hill, one thing is clear—fraud prevention is no longer an afterthought. It’s becoming a key focus in protecting taxpayer dollars and ensuring federal programs operate smoothly. If lawmakers approve the Treasury’s request for permanent access, it could mark a turning point in the battle against improper payments and fraud.
