Feds paid $1 billion in Social Security benefits to individuals without a SSN.

The Social Security Administration paid $1 billion in benefits to individuals who did not have a Social Security Number (SSN), according to a new audit.

The agency’s inspector general found errors in the government’s documentation for representative payees, otherwise known as individuals who receive retirement or disability payments on behalf of another person who is incapable of managing the benefits themselves.

The audit released Friday found thousands of cases where there was no SSN on file.

Over the last decade, the agency paid $1 billion to 22,426 representative payees who "did not have an SSN, and SSA had not followed its policy to retain the paper application."

“Furthermore, unless it takes corrective action, we estimate SSA will pay about $182.5 million in benefits, annually, to representative payees who do not have an SSN or paper application supporting their selection,” the inspector general said.

The inspector general also found the agency paid $853.1 million in benefits since 2004 to individuals who had been terminated as representative payees by the agency.

Waiting for the rest of the details, but this doesn't surprise me too much. Social Security has to do a lot of spending, and keeping the paperwork straight with over 300 million people PLUS a number of tasks to perform other than straight SS payments, mistakes and apparent mistakes are inevitable.

The main further info needed, is what exactly this means. I know that some people are going to jump to conclude that all of it is going to undocumented aliens and other scammers, but I know that the SSA has to pay tons of employers and others, as well as us lowly civilians. When someone misses a payment, there may be quick and incompletely documented replacement checks written, or other problems. I make no assumptions either way, myself.

Any hint on where exactly they think the money went? Or just the tantalizing and uninformative flat statement?

To minimize the risk of fraud, the SSA needs those SSNs on record.

They also pay billions to people with SSN's that don't even need social security income.

"Feds" not really known for efficient spending.

Other than that, IMO that's probably a bigger crime than paying to people without SSN's.

The biggest problem with SS benefits going to people without SSN's is the possibility it's repatriated to other countries.
Otherwise, it's being spent locally for people to live. They're putting the money into the economy.
People getting benefits and then western unioning it out of the country, then it's not circulating, churning, but slowing velocity.

People sitting on millions in a living trust or savings account or transferred to family so it's not in their name, while pulling in a fed paycheck, is a big chunk of capital not really circulating through the economy realistically.

The way the current monetary system works it's mostly reliant upon people continuing to spend, to keep it churning through the economy, never really sitting anywhere, always at work, never really "wealth," just the false sense of it.
e.g. the $100 bill parable, going through the economy. Hotel, to farmer, etc.

So, the biggest "crimes" is if money isn't being used locally. If it's being sent outside the country rather than moving through the local economy, or a big chunk is sitting there not doing much while government money is being used to subsidize "rich" people.

Other than being a giant Ponzi scam, it is their job to dole out the money. Keep the money movin.

Well, any time I had to deal with the Government the first thing they wanted to know was my SS number... 1st thing.

No number..paperwork incomplete... conversation over.

And I don't think there is anyone at SS writing " quick checks" to anyone to make up for missed ones.

the SS office never does anything quick and I don't think they really care if people are waiting for their money.

Looks like real sloppy bookkeeping to me.. not surprising, at all

I recently went to the SS office here. Middle of the day, very few english speakers there. Looked like a meeting at the U.N.

Can't really get involved in American Politics, but in the UK they have similar problems regarding benefit payments, but as Dodo was hinting at
(I think),it is probably cheaper to pay-than having to try and keep surveillance on every individual that makes a claim for benefits, plus, they know exactly where they are, having said that, if you are a law abiding citizen who works hard-pays their taxes etc, they want every last detail from you before you are even considered,it really is maddening,we live in a very disjointed World,and everything seems to be against us all the time.

I went once with a family member.. the people in the office look right thru you as they BS with each other. You take a number and sit the hell down and wait. its like going to the motor vehicle office. ( in Jersey anyway)

just sit down.. shut up.. and do as you are told.

But for some reason when you walk out you are thankful that they took the time out of their BS-ing to serve you... Like they did you a big favor.

I'm in the wrong line of work.