A New Scam

      From Social Security’s Office of Inspector General:

The Office of the Inspector General (OIG) for the Social Security Administration (SSA) is warning the public about a growing scam involving fraudulent remote job offers falsely claiming to be associated with SSA or other government agencies.

Scammers are posing as hiring personnel or recruiters and offering fictitious remotepositions — such as “administrative assistant,” “claims processor,” or “virtual benefits coordinator.” These scammers may use fake SSA email addresses, official-looking documents, or spoofed phone numbers.

Scammers may ask for personal information such as Social Security numbers, banking details, or copies of government-issued IDs. Victims may be told to pay for training materials or computer equipment as a condition of employment. …

Here’s An Idea For The Commissioner

      From Social Security’s Office of Inspector

 While SSA has made progress implementing corrective actions for both the OASDI and SSI programs, the Agency did not demonstrate improvements to payment integrity or achieve its tolerable improper payment rate for the SSI program. The SSI improper payment rate increased from 9.41 percent (approximately $5.3 billion) in Fiscal Year (FY) 2019 to 10.62 percent (approximately $6.5 billion) in FY 2023.

According to SSA, the Agency’s reliance on self-reporting by beneficiaries, recipients, and their representative payees—who are required to notify SSA when a change occurs affecting their SSI eligibility or payment amounts—leads to many improper payments.  Failure to report these changes continues to be a primary cause of overpayments. 

One of the leading causes of overpayments to SSI recipients is recipients’ unreported resources in financial accounts that exceed allowable amounts. SSA has tools, such as the Access to Financial Institutions (AFI) program, to help identify excess resources.  Using AFI, SSA verifies alleged bank account balances with financial institutions and searches for undisclosed accounts at geographically relevant locations.  SSA uses AFI when it processes initial SSI applications and periodic eligibility redeterminations.

However, according to SSA, in FY 2023, 89 percent of overpayments resulting from excess resources in financial accounts occurred because of recipients’ changes after SSA approved their initial SSI applications or completed eligibility redeterminations. 

OIG estimates SSA could have prevented approximately $2 billion in overpayments in FY 2023 had it performed AFI searches between approving recipients’ initial applications and completing redeterminations.

OIG previously recommended SSA conduct a study to expand the use of AFI.  SSA has not implemented this recommendation.

     The problem with implementing this is probably the delay it would cause but, hey, it’s only SSI so it wouldn’t matter to a Republican if the benefits are never paid! 

OIG Criticizes SSA Contract With Verizon

     Social Security's Office of Inspector General (OIG) has a good deal of criticism for the agency's $160 million contract with Verizon for an updated telephone system. Things worked out poorly and OIG blames the inability to get Verizon to make things work on lack of performance standards in the agency's contract with Verizon.

The Actual Scope Of The Problem And The Sophisticated Efforts To Deal With It

     A press release from Social Security's Office of Inspector General:

Receiving accurate reports of death is a major and ongoing concern for the Social Security Administration (SSA). A recent report by the Office of the Inspector General (OIG) illustrates the need for SSA to continue to improve its death reporting processing systems.

According to the report entitled, “Rejection of State Death Reports,” from November 2018 through October 2022, states throughout the country submitted about 13.7 million death reports to SSA. SSA’s Death Information Processing System (DIPS) accepted about 12.2 million and rejected nearly 1.5 million (11 percent) state death reports. SSA OIG determined that SSA rejected over 1.4 million state death reports that did not pass DIPS verification checks. SSA uses DIPS to verify the death information it receives. DIPS rejects death reports that do not pass its verification checks to prevent posting erroneous death information to SSA records.

It is only after death information passes DIPS verifications that SSA records the information to the Numident (a database that stores information for all Social Security numberholders) and terminates payments to deceased beneficiaries. The verification checks prevented DIPS from posting incorrect or duplicate death information to SSA records for approximately 773,000 of the 1.4 million death reports submitted by states.

However, SSA OIG reported an estimated 702,000 of the 1.4 million state death reports that were rejected contained valid death data but did not pass DIPS verification checks. DIPS rejected most death reports when it detected a verification date submitted by the reporter was different than the latest verification date in SSA’s records. When this occurs, DIPS rejects the report without validating whether the reported death information is correct. This delays posting of the date of death to the Numident and payment records and results in continued payments to deceased beneficiaries until SSA receives and processes the death information.

This issue led to improper payments to beneficiaries of $327 million and could lead to an additional $108 million over the next year if SSA does not add death information to payment records for beneficiaries in current payment status. Moreover, SSA employees must manually process the rejected death records. It is estimated it will require SSA employees to spend 199,000 hours to process this workload, costing $12 million in administrative expenses. OIG made three recommendations to improve the accuracy of the death information in its records to which SSA agreed. See the full report here.

    These things are vastly more complicated than DOGE can imagine.

What Happened To Michelle Murray's Lawsuit?

     I posted this on October 31, 2023:

Michelle Murray, Chief Counsel of Social Security's Office of Inspector General (OIG), has filed suit on her own behalf pro se (meaning she is representing herself) in federal court in Pennsylvania against Debbie Shaw (Supervisory Attorney at the Office of the Counsel for Investigations and Enforcement -- or OCIE -- at OIG), Joscelyn Funnie (Senior Executive at OCIE), Lisa Rein (a reporter at the Washington Post), WP Company (which owns the Washington Post -- identified in the complaint as "left-centered"), Faith Williams (Director of the Effective and Accountable Government Program at the Project on Government Oversight) and the Project on Government Oversight. The complaint alleges defamation, tortious interference, and false light invasion of privacy. My name is mentioned but not as a defendant.

    Does anyone know what ever happened to this suit? Is it still around?

NADE Newsletter

     The National Association of Disability Examiners (NADE), whose members work at state agencies making disability determinations at the initial and reconsideration levels for Social Security, has released its most current newsletter, concerning its National Training Conference in Oklahoma City in August. Presentations by John Owen, Associate Commissioner of the Office of Disability Determinations, Hope Grunberg, Associate Commissioner of the Office of Disability Policy (ODP), Ben Gurga, Deputy Associate Commissioner of ODP, Kasey Torres, Director of the Division of Disability Quality and Kevin Huse, Deputy Assistant Inspector General For Cooperative Disability Investigations are summarized.

Acting Inspector General

    An otherwise negligible report by Social Security's Office of Inspector General reveals a minor detail that may interest some of my readers. The new Acting Inspector General is Michelle L. Anderson, the Assistant Inspector General for Audit. Judging by her Linked In account, she's a long time federal employee.

Report On Ennis Raises Questions

     From  the the Integrity Committee of the Council of the Inspectors General on Integrity and Efficiency (IC):This investigation began in May 2022. Why did it take them more than two years to finish this simple investigation?

The IC finds by a preponderance of the evidence that IG [Inspector General] Ennis abused her authority and engaged in conduct that undermined the integrity reasonably expected of an Inspector General. In pertinent part, the IC finds that IG Ennis made incomplete, misleading, and inaccurate representations about another OIG [Office of Inspector General] to various government entities; failed to retract, withdraw, or otherwise modify those representations when informed they were untrue; and then wrongfully obstructed the IC’s investigation of her and other SSA OIG executives. Rather than recusing herself from an investigation that concerned her own alleged misconduct due to the inherent conflict of interest, she participated personally and substantially in her official capacity in the SSA OIG’s decision-making regarding the IC’s investigation into her conduct, in clear violation of federal ethics requirements and despite being reminded by the IC in March 2024 of her obligation to recuse herself because the matter being investigated affected her personal interests.(footnotes omitted)

    This investigation began in May 2022. Why did it take them more than two years to finish this simple investigation? Why do they have no criticism or any real discussion of Ennis concerning the substantive allegations made against her? Why did they release this on Friday, July 5 in apparent hopes of burying the story? Why did they tip off Ennis in advance so she could quit her job just before this came out? Is no criminal referral warranted? Why was such a spectacularly unfit person allowed to stay in her job this long?

Ennis Finally Leaving

     Gail Ennis is finally resigning as Social Security’s Inspector General after an investigation determined that she tried to obstruct inquiries into her behavior.

Social Security's Inspector General Is A Disgrace

     From Lisa Rein at the Washington Post:

The Social Security Administration’s internal watchdog office failed to properly notify some poor and disabled Americans before levying huge fines on them, an investigation by an independent watchdog agency found.    

The two-year probe into a little-known anti-fraud program discovered particularly stark due process violations starting in 2018, with investigators finding no evidence that the government ever sent written notice to some of those hit with massive penalties, which at times reached more than $100,000. Even when the inspector general’s office, which runs the program, did send notification letters in previous years, investigators found it often failed to properly serve people with notice of the proposed fines. ...

[The investigators] took the unusual step of urging the Social Security Administration to review every penalty the government has issued under the Civil Monetary Penalty program since 1995, to notify claimants who were fined and to take “corrective action.” ...

Increase In Social Security Fraud

     From Newsweek:

The Social Security Administration (SSA) has issued a warning for Americans regarding scams that are stealing benefits from thousands of recipients each year. ...

According to the SSA's Office of the Inspector General, there was a 61.7 percent increase of reported scams between Q3 of the financial year in 2022 and the same period in 2023. In the former, just over 13,000 scams were reported, rising to 21,080 in the latter. ...

[T]hose under 50 were most likely to fall for scams ...

Overdue

    From Joe Davidson at the Washington Post:

The Democratic chairman of a powerful Senate committee on Wednesday called on President Biden to fire the lead watchdog for the Social Security Administration, pointing to stalled investigations and plunging staff morale.

In a letter sent Wednesday to the White House, Sen. Ron Wyden (Ore.), chairman of the Senate Finance Committee, said promises by Inspector General Gail Ennis to “establish a culture that welcomes debate, collaboration, and transparency … appear to have been hollow.”

“I urge you to remove her,” Wyden wrote. ...

New Allegations Against Social Security Inspector General

     From Federal News Network (emphasis added):

House Democrats are reigniting an investigation into Department of Homeland Security Inspector General Joseph Cuffari’s use of taxpayer dollars to settle claims of retaliation by his former top deputy.

And lawmakers are also probing whether the Social Security Administration’s inspector general inappropriately referred Cuffari to her former law firm in connection with the retaliation investigation. A spokeswoman for the SSA IG called the assertions “blatantly inaccurate.” ...

DHS OIG spent $1.4 million on a 2020 contract with law firm WilmerHale to conduct an investigation into allegations of misconduct by Costello and other former employees. The investigation ultimately did not substantiate any allegations of illegal misconduct.

[Jamie] Raskin [House Oversight and and Accountability Ranking Member] is now investigating the role SSA Inspector General Gail Ennis may have played in the DHS OIG’s decision to contract with WilmerHale. Ennis was a partner at WilmerHale before becoming SSA IG in January 2019.

In deposition before the Merit Systems Protection Board, Cuffari said he asked Ennis to have her office conduct the investigation. Ennis declined to take it on due to the high workload, Cuffari said.

Raskin is probing whether she had a role in advising Cuffari to select WilmerHale for the investigation.

“If true, this would appear to violate your ethics agreement, which shows that you were a partner at WilmerHale and continue to have an ongoing financial stake in the firm’s profitability,” Raskin wrote in a letter to Ennis today. “As a result, your referral to your former employer WilmerHale potentially represents a financial conflict of interest.”

 A spokeswoman for the SSA OIG told Federal News Network that “Inspector General Ennis looks forward to the opportunity to respond to Ranking Member Raskin to correct the blatantly inaccurate assertions made in the letter.” ...

OIG Report To Congress

     This is from the Semiannual Report to Congress prepared by Social Security's Office of Inspector General. Note that 143,816 total allegations of fraud were received but there were only 228 indictments or criminal informations issued. That's a pretty low ratio. Note also the vast number of imposter scam allegations received. This is where the real fraud problem is at Social Security. (I received a call earlier this week from a former client who was the recent victim of imposter fraud. How long will it take before his benefits are restored?)

Click on image to view full size

    Also, why is Gail Ennis still the Inspector General?

SSA Hiring And Training Issues

     From The Social Security Administration’s Major Management and Performance Challenges During Fiscal Year 2023, a report by the Office of Inspector General at Social Security:

... As of September 23, 2023, SSA had increased its staff size from 56,423 full-time permanent staff in FY 2022 to 59,591 in FY 2023. FY 2023 hiring helped SSA reverse the recent trend of declining employees in more recent years ...

SSA curtailed additional anticipated hiring in June 2023 in response to the passing of the Fiscal Responsibility Act of 2023 (Pub. L. No. 118-5). SSA lowered each of its component’s allocation of employees because it did not want to hire employees whose salaries future budgets may not support given that the Act limits non-Defense funding in FY 2024. ...

While it hired many new employees, SSA reported it still had challenges recruiting and retaining employees because its positions are complex and require more training compared to similar positions in private industry. SSA’s Office of Operations acknowledged its self-online-training model is less engaging than in-person training and does not work well with all new hires. Also, SSA cannot offer its frontline employees some workplace flexibilities other agencies can, such as full-time remote work. Employees who separate from SSA reported they were leaving to take higher-paying jobs or because they felt overworked at SSA. ...

OIG Chief Counsel Files Personal Suit Alleging Defamation, Tortious Interference, and False Light Invasion Of Privacy

     Michelle Murray, Chief Counsel of Social Security's Office of Inspector General (OIG), has filed suit on her own behalf pro se (meaning she is representing herself) in federal court in Pennsylvania against Debbie Shaw (Supervisory Attorney at the Office of the Counsel for Investigations and Enforcement -- or OCIE -- at OIG), Joscelyn Funnie (Senior Executive at OCIE), Lisa Rein (a reporter at the Washington Post), WP Company (which owns the Washington Post -- identified in the complaint as "left-centered"), Faith Williams (Director of the Effective and Accountable Government Program at the Project on Government Oversight) and the Project on Government Oversight. The complaint alleges defamation, tortious interference, and false light invasion of privacy. My name is mentioned but not as a defendant.

    There's probably a better way I don't know about but if you want to download this complaint you'll have to wait until I approve your request. I'll approve every request but I can't do it instantly.

    I'll say that as a general matter this sort of suit is difficult to win. I'd also say that if you're going to bring this sort of action your hands better be squeaky clean.

    Query: Do Debbie Shaw and Joscelyn Funnie qualify for government legal representation? I'd think so but I don't know the rules on this sort of thing.

By Far The Most Read Post Ever On This Blog

     From this blog on May 22, 2022:

“Serious Concerns” About IG

      From the Washington Post:

… The acting commissioner [of Social Security] “has very serious concerns about the issues raised by The Washington Post about the inspector general’s oversight of this program,” Scott Frey, chief of staff to Kilolo Kijakazi, said in an interview. Kijakazi has scheduled a meeting with her senior staff on Monday “to discuss how to proceed,” Frey said. …

A spokesman for the Senate Finance Committee, which also has jurisdiction over Social Security, said the committee is “evaluating a number of steps” in response to the article. …

     An extreme reduction in productivity has been signaling for months that something is wrong at OIG.

 

 

    And, of course, that Inspector General is still on the job.

What's Going On With The Investigation Of The IG?

     Faith Williams, Director of the Effective and Accountable Government Program at the Project on Government Oversight (POGO), has spoken with Federal News Network about the situation with Social Security's Inspector General. It's a bad situation. There's also a written report.

    When are we going to get some resolution? The investigation of the IG is going on and on. How many people are there to interview? How many documents have to be reviewed? Why is this taking so long?

Why Is Gail Ennis Still In Office?

Gail Ennis

     From the Washington Post:

A top Senate Democrat is demanding answers from Social Security’s embattled watchdog about allegations of low productivity, poor morale and retaliation against whistleblowers in her office.

In an 11-page letter sent this week, Senate Finance Committee Chairman Ron Wyden (D-Ore.) said his committee had received complaints from current and former employees in the watchdog division of a hostile work environment, hiring abuses, misuse of federal money and “falling productivity.”

“I write to express my concerns regarding your performance as Inspector General,” Wyden wrote. “It is paramount that the Office of Inspector General cultivates and maintains a workplace free of harassment, intimidation, or retaliation.” ...

Dropped Calls

    From The Social Security Administration’s Telephone Service Disruptions, a report by Social Security's Office of Inspector General (OIG):