IRS Commissioner Frank Bisignano revealed that a recent review of the Social Security number database identified a 10% error rate, indicating that a substantial portion of recipients were listed incorrectly. This finding has prompted referrals to the Department of Justice for investigations into potential fraud and abuse.
Speaking on Steve Bannon's "War Room" program, Bisignano stated that the scale of the erroneous payments could amount to as much as $30 million, though not all funds were ultimately disbursed. He elaborated that these incorrectly listed individuals possessed active Social Security numbers that could be exploited for fraudulent purposes, even if they were not directly collecting Social Security benefits. These numbers could be used for other government-related activities.
A senior official familiar with SSA and IRS operations noted that under Bisignano's leadership, the Social Security Administration (SSA) is undertaking a comprehensive reconciliation of its records. The goal is to ensure the Social Security Number Database, known as Numident, is as accurate and up-to-date as possible. This process integrates data from various sources, including birth records, the Death Master File, and Department of Homeland Security information on non-citizens, to enhance payment accuracy and prevent fraud and improper disbursements. These controls have reportedly stopped approximately $150 million in fraudulent losses over the past year.
The reconciliation efforts are credited with enabling the Treasury Department to halt nearly $100 million in payments to deceased recipients since March 2025. According to Bisignano, such a comprehensive reconciliation of the database has not been conducted since 1935. He indicated that the federal government has a history of making erroneous payments for an extended period. Individuals identified in these erroneous payments will now be subject to scrutiny by the Treasury or face potential criminal charges investigated by the Department of Justice. Bisignano confirmed that active investigations are currently underway.
The approximately $99 million in Social Security benefits intended for deceased recipients has been recovered. Treasury Secretary Scott Bessent stated that this initiative fulfills a key promise of President Trump's directive to prevent improper payments and fraud before funds leave the Treasury and to bolster the integrity of the federal payment system. Bessent added that this new safeguard, in conjunction with Vice President Vance's Task Force to Eliminate Fraud, addresses a long-standing vulnerability and ensures that federal dollars are allocated to their intended recipients. The Treasury plans to continue modernizing the federal payment system and strengthening defenses against fraud and improper payments to safeguard taxpayer funds.
These recoveries were facilitated by the Treasury's "Do Not Pay" program, which verifies recipients' identities, eligibility, and banking information prior to disbursing federal funds. The Treasury's access to the SSA's "Full Death Master File," made permanent by a law signed by Trump in February 2025 and initially granted through federal legislation in 2021, was instrumental in identifying deceased or improperly paid recipients. Treasury officials project that these combined tools will ultimately reclaim an estimated $330 million in net benefits that were improperly paid to deceased individuals.