The Social Security Administration scrapped the Department of Government Efficiency’s plans to stop providing service to recipients over the phone.

Last month, DOGE proposed ending some of the Social Security Administration’s over-the-phone claims services to combat identity fraud, setting off widespread panic among recipients. After a month of pushback, the Trump administration is backtracking on the plan. An internal memo obtained by the Washington Post said that plans to force Social Security, Medicare, and other welfare recipients to set up direct deposit payments online or in person were canceled.

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The memo from acting deputy commissioner Doris Diaz concluded that fraud could be investigated by phone as effectively as in person or online.

The memo said the SSA would implement a new fraud detection tool to “flag suspect teleclaims based on known, common characteristics of fraudulent claims” and only require an in-person meeting with recipients if the tool sounded the alarm.

40% of Social Security claims are reportedly settled by phone.

DOGE’s retreat presents a public relations setback for Elon Musk and the Trump administration. While the proposal did not involve cutting benefits, it played into the Democratic narrative that DOGE was pursuing cuts to popular programs such as Social Security.

The March proposal prompted a flood of angry constituents to show up at SSA field offices, leading lawmakers and administration officials to intervene.

Diaz acknowledged the new fraud tool that will be rolled out as a compromise may be flawed, but “This risk is lower than sending 40,000-plus teleclaims customers to field offices per week for in-person identity proofing.”

The SSA announced the changes in a post on X.

“If you are changing your direct deposit information, the Social Security Administration will continue conducting anti-fraud checks in-person and online,” it said. “The Social Security Administration has rolled out several new anti-fraud measures to protect our beneficiaries. Users of our phone service will only have to come in-person if they are flagged by our anti-fraud system. We are surging personnel to the phone lines to better assist anyone that needs help.”

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While the saga drew the public’s ire, the White House defended DOGE in a statement, saying it was working “around the clock in person” to improve the technological capabilities and efficiency of the SSA.

“Under President Trump’s leadership, the Social Security Administration is taking bold steps to transform how they serve the public — improving front line customer service, modernizing their technology, protecting beneficiaries and securing the integrity of their programs,” White House spokeswoman Liz Huston said in a Wednesday statement.