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Forbes
Forbes
12 Mar 2025


The Social Security Administration is considering ending its phone service—used for 40% of benefit claims—due to largely unfounded concerns of phone fraud by Elon Musk’s Department of Government Efficiency, The Washington Post reported Wednesday, as billionaire Musk and President Donald Trump have repeatedly alleged without evidence that Social Security is subject to widespread fraud, but vowed to leave people’s benefits alone.

Elon Musk holding a chainsaw

Elon Musk holds a chainsaw during the annual Conservative Political Action Conference (CPAC) at the ... [+] Gaylord National Resort & Convention Center at National Harbor in Oxon Hill, Maryland, on February 20.

AFP via Getty Images

Musk has repeatedly made public comments suggesting he believes there is widespread Social Security fraud, claiming on X the agency may have “the biggest fraud in history” and describing Social Security as a “Ponzi scheme” in a recent interview with podcaster Joe Rogan, and DOGE officials have reportedly met with Social Security staffers in an effort to make cuts across the agency to root out purported fraud and waste.

Agency officials are considering cuts to the phone service that millions of Americans use to process Social Security claims and direct-deposit bank transactions, The Post reports based on anonymous sources, in response to DOGE’s concerns about people making fraudulent phone calls to get benefits—which The Post notes does happen, but such fraud is “not prevalent enough to require drastic action or changes.”

Musk argued in an interview with Fox Business that “waste and fraud in entitlement spending” is “the big one” for the government “to eliminate,” claiming there’s “a half trillion, maybe 600 or 700 billion a year” in wasteful and fraudulent spending—which there is no evidence to support, as that would represent nearly a third of the $1.5 trillion Social Security paid out last year and approximately 20% of the amount spent on Social Security and Medicare combined.

Acting Social Security head Leland Dudek, a Trump ally, expressed concerns about DOGE’s activities in comments to senior staff reported by The Post and ProPublica, reportedly saying DOGE’s cuts to the agency are being made by “outsiders who are unfamiliar with nuances of SSA programs” and officials “will make mistakes”; ProPublica reports Dudek also said he “need[s] to do what the president tells me to do” and has made choices he “didn’t agree with,” expressing fears it “would be catastrophic for the people in our country” if DOGE made sweeping changes at SSA.

Trump claimed during his speech to Congress last week that the Social Security system is subject to “shocking levels of incompetence and probable fraud”—which there is broadly no evidence to support—saying his administration was “searching right now” to investigate purported instances of the government making Social Security payments to dead Americans who are listed as being up to 160 years old.

Musk and Trump’s claims about dead Americans receiving Social Security benefits comes despite Social Security staffers informing DOGE officials that any listings of dead Americans are simply a product of the agency’s out-of-date database system and payments are not actually being made to dead people, The Post reports—leading DOGE officials to reportedly “drop the matter,” even as Trump and Musk publicly continue to push the fraud claims.

Musk and DOGE officials have reportedly attempted to access sensitive information at the Social Security Administration, multiple outlets report—part of DOGE’s broader efforts to investigate purported waste in federal agencies—which led the acting head of the SSA, Michelle King to resign in February, reportedly due to a clash with Musk.

The SSA also announced it planned to cut approximately 7,000 jobs from its workforce, which it said would focus on “functions and employees who do not directly provide mission critical services,” as well as reduce its current 10 regional offices down to four.

Musk and Trump have so far not suggested there will be any cuts to Americans’ Social Security benefits—which has been a delicate political issue—with Musk claiming the goal of him reviewing the SSA “is to stop the extreme levels of fraud taking place, so that it remains solvent and protects the social security checks of honest Americans!”

It’s still unclear if proposed cuts to Social Security’s phone services will actually happen, The Post reports. If it does, that would mean Americans could only process Social Security claims online or in person at agency offices—something that’s often difficult for the elderly and disabled Americans who rely on the benefits, the publication notes. Stopping the agency’s phone service “would be the single largest service disruption in agency history ever,” an unnamed Social Security staffer told The Post, which notes approximately 40% of Social Security claims are handled by phone and the agency’s toll-free number received more than 80 million calls in 2023. (That number includes calls that didn’t involve processing claims, like Americans who call to ask questions about their benefits; it’s unclear how any cuts would affect those services.)

While Musk and Trump have vowed not to touch Americans’ Social Security benefits, their cuts to the agency could have knock-on effects that affect service. The Post reports that phone lines at the agency have already gotten significantly backed up, which has prevented staff at an office in Indiana from handling retirement claims, and ProPublica reports DOGE has canceled IT contracts at the agency, which has resulted in its tech systems crashing “nearly every day.” Restrictions on spending using government credit cards has also hampered agents’ abilities to process some claims, ProPublica reports, by making it harder to obtain or make copies of documents like birth certificates. Martin O’Malley, a Democrat and former Maryland governor who ran the SSA under the Biden administration, issued a dire warning about the impact of DOGE’s cuts to the agency, which he predicted would lead to staff shortages at the agency and IT systems outages that could interfere with Americans’ benefits. “Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley told CNBC in February, which he projected could happen “within the next 30 to 90 days.” “People should start saving now,” O’Malley said.

It’s unclear if Musk and DOGE will make any other changes at the SSA beyond the cuts to the agency’s workforce and potential phone cuts, as Musk has so far broadly said he wants to root out fraud without proposing any specific cuts or reforms. While Trump has broadly said his administration is investigating purported fraud at the agency, it remains to be seen what further changes DOGE or Trump could make and when they could be implemented, though cuts at this and other agencies suggest reductions to the agency’s funding could be widespread in scope.

Dudek told senior staff and advocates for the elderly and disabled he is “receiving decisions that are made without my input,” The Washington Post reported citing anonymous sources, claiming, “DOGE people are learning and they will make mistakes, but we have to let them see what is going on at SSA,” and the agency is abolishing its old ways of “setting goals, doing studies, discussion, getting information and data before making decisions.” ProPublica obtained a more substantive recording of Dudek’s remarks, reporting the agency head made “alarming statements” about the future of Social Security, at one point saying about DOGE’s efforts, “Are we going to break something? ... I don’t know.” Dudek touted Trump’s efforts to root out purported fraud, in a press release following the president’s speech to Congress, which thanked Trump for “highlighting these inconsistencies,” arguing the agency was “steadfast in our commitment to root out fraud, waste, and abuse in our programs” and was “actively correcting inconsistencies.” Dudek’s rise from the agency’s anti-fraud head to acting commissioner has set off “alarm bells” among agency staff, The Post previously reported, as Trump chose him over higher-ranking career officials at the agency.

Musk claimed in the Fox interview Monday that entitlements are “the mechanism by which the Democrats attract and retain illegal immigrants, by essentially paying them to come here and turning them into voters.” The billionaire claimed Democrats are upset about Musk’s comments about entitlements because “if we turn off this gigantic money magnet for illegal immigrants, they will leave, and [Democrats]

Musk’s comments about entitlements on Fox Business have drawn widespread condemnation from Democrats. “There were howls of protest and denial from the GOP any time we pointed out that Republicans want to cut Social Security,” former Secretary of Transportation Pete Buttigieg wrote on X. “Now the most powerful official in the White House goes on TV and calls it ‘the big one to eliminate.’” Democrats have repeatedly raised concerns since the inauguration that Trump and Musk could try to cut Americans’ benefits even as they’ve vowed not to, with Rep. Sarah McBride, D-Del., telling CNN on Feb. 3 the administration’s broad cuts to other areas of the federal government suggests “we cannot take them at their word when they say Social Security and Medicare are protected.”

By all accounts, no—at least not anywhere near at the scale Musk and Trump have claimed. There’s no concrete evidence suggesting overwhelming fraud in the Social Security system, and Musk’s claims of up to “half a trillion” in fraud would be approximately a third of the $1.5 trillion that was paid out by Social Security in fiscal year 2024. Errors and abuse of the system do exist, but data suggests it’s relatively rare. The Inspector General’s office that oversees the SSA reported in August the SSA made nearly $72 billion in improper payments between fiscal years 2015 and 2023—which, while a large number, is still less than 1% of the total Social Security benefits paid during that period.

The biggest fraud claim Musk and Trump have perpetuated is suggesting the government is making Social Security payments to people who are deceased. Leavitt has claimed “tens of millions” of people are receiving fraudulent payments, and Trump said during his speech to Congress there are some 16 million people in the Social Security database listed as being between 100 and 159 years old. There is no evidence to support any fraud on that scale—which would be a substantial percentage of the 73 million Americans who receive benefits overall—though the inspector general has found the agency has made improper payments to dead people on a far, far smaller scale. Musk and Trump have claimed the government is paying benefits to people who are 150 years old, but experts have suggested that’s not actually the case and may be a quirk of the dated programming language used by the SSA’s computer systems. Whenever an American’s birth date in the system is missing or incomplete, that system will default to saying they were born in 1875, Wired notes, which means they would be falsely listed as being 150 years old. The IG’s office has also said tens of millions of people over the age of 100 erroneously remain in the SSA database—but it’s not clear how many actually received payments. SSA has said it automatically terminates Social Security payments for any beneficiary age 115 and above, in order to root out people who are deceased.

Trump has said he’s not looking to cut Social Security—a third rail in U.S. politics given the program’s popularity. Trump drew controversy during the election for suggesting he could make cuts to Social Security and Medicare, telling CNBC in March, “There is a lot you can do in terms of entitlements, in terms of cutting and in terms of also the theft and the bad management of entitlements.” The Trump campaign insisted Trump was not trying to suggest he wanted to cut entitlements, with Leavitt—then his campaign spokesperson—saying Trump “will continue to strongly protect Social Security and Medicare in his second term.”

Dudek is now running the SSA on an acting basis in the wake of King’s resignation, until Fiserv CEO Frank Bisignano, whom Trump has nominated to permanently lead the agency, is confirmed by the Senate. In comments to CNBC in February, Bisignano said his mission at the agency will be to “carry out the president’s mission,” noting, “The objective is not to touch benefits,” but mentioning his desire to root out “fraud, waste and abuse.” The Trump nominee also said he would “100% work with DOGE” at the SSA, saying his past work trying to build efficiency in the private sector makes him “fundamentally a DOGE person.”

During his speech to Congress, Trump reiterated his proposal to eliminate income taxes on Social Security payments, which the president first proposed on the campaign trail but has not yet taken any steps towards. Experts criticized his proposal during the election because they argued it would make Social Security insolvent faster, however. While Social Security is already projected to run out of money by 2034 at its current rate, the nonpartisan Committee for a Responsible Federal Budget projected exempting taxes on benefits would result in Social Security and Medicare receiving $1.6 trillion less in revenue between 2026 and 2035 than if the current rules stayed in place, causing Social Security to become insolvent in 2032.

It’s not clear what data Musk’s team is looking to access or why, but Nancy Altman, president of the left-leaning advocacy group Social Security Works, told The Washington Post the agency has private information for millions of Americans, including Social Security numbers, medical information for those receiving disability benefits, employment records, bank records and more. Altman argued there’s “no way to overstate how serious” a “breach” of Social Security’s systems by DOGE would be, telling CNN the “SSA has data on everyone who has a Social Security number, which is virtually all Americans, everyone who has Medicare, and every low-income American who has applied for Social Security’s means-tested companion program, Supplemental Security Income.” “If there is an evil intent to punish perceived enemies, someone could erase your earnings record, making it impossible to collect the Social Security and Medicare benefits you have earned,” Altman claimed. There is currently no evidence of DOGE mishandling data, and Musk has said he doesn’t have any intention to use Americans’ personal information at all, responding to concerns about his access to Americans’ data Monday by referencing his previous work for payment company Paypal. He wrote, “Bruh, if I wanted to rummage through random personal s—t, I could have done that at PAYPAL. Hello???”

Another explanation for Musk’s fraud claims is people such as undocumented immigrants paying into Social Security by taking over numbers belonging to people who have since died, Alex Nowratesh, an expert at the libertarian Cato Institute, noted. The SSA’s inspector general reported in 2015 that between fiscal years 2008 and 2011, employers performed more than 4,000 E-Verify checks for employees involving Social Security numbers that belonged to someone born before 1901. Trump’s mass deportations may also harm Social Security’s financial future, as undocumented immigrants bolster the Social Security system by paying into it through their taxes but not receiving any benefits. The office of the Social Security Administration’s chief actuary estimated in 2013 that undocumented immigrants contributed approximately $12 billion to Social Security in 2010, and CFRB estimated Trump’s deportation plans, along with proposed tariffs, would together cost Social Security anywhere between $300 billion and $750 billion between fiscal years 2026 and 2035.

DOGE’s reported involvement in Social Security comes after the Musk-helmed group, dedicated to rooting out purported federal waste, has already drawn widespread controversy for making cuts across the federal government, including canceling federal spending and terminating vast swaths of federal employees. The group’s access to sensitive information at other federal agencies has also attracted criticism and legal action, as DOGE has accessed systems at the Departments of Treasury, Labor and Education, among others. Federal judge have blocked DOGE from accessing Treasury and Education Department data as litigation over officials’ access continues, though other judges have been unwilling to issue immediate orders keeping DOGE officials from information at the Departments of Labor and declined to halt the group’s work more broadly. Musk and DOGE were also behind the widespread dismantling of the U.S. Agency for International Development, and have targeted other federal agencies such as the Consumer Financial Protection Bureau.