A Theory

     I've been thinking about that post yesterday concerning a man who visited a Social Security field office to obtain a replacement Social Security card. He was given a sheet containing a telephone number he could call to get the card replaced. He called the number and found that it wasn't Social Security on the other end but a scammer. The number on the sheet was one digit different from the real number he should have called.

    My initial thought was that someone at the Social Security field office must have been in cahoots with the scammers but one fact kept drawing my attention -- the number the man was given to call was only one digit different from the real number. If you had someone on the inside who was funneling calls to you, why would you go to the trouble of obtaining a phone number so similar to the real one?

    Let me posit a theory for what happened. Nobody at Social Security was in cahoots with the scammers. The number on the sheet was a simple typo. What had happened was that scammers had obtained as many telephone numbers as they could that were one digit different from the real number. Probably they did this for many offices. They could then expect a steady stream of misdials from people who thought they were talking with a Social Security office. By chance, the sheet handed out by Social Security funneled more calls to them but it wasn't part of their scheme. Actually, the typo may end up exposing their scheme.

    That's my theory. Have you got a better one?

What Happened Here?

      From The Intercept:

“We need to let you know you have been selected for $100 in rewards.”

It was a cheery automated message, not what I expected when I called the number for the Social Security Administration’s primary office in Manhattan. The message went on: “Simply press 1 now to be connected to a live agent and claim your gift today.”

I double-checked the number, which a Social Security employee had just given me at the agency’s local office in Harlem in late February. I needed to replace a lost card, which was a service only offered at certain locations, the agent told me. He slid me a flyer and circled the contact information for the office in the Financial District in Manhattan.

“You can call this number to try making an appointment,” the agent told me.

Still sitting in the lobby of the Harlem building, I dialed the number a couple more times, and each time reached a different grifter: I was eligible for another $100 gift card to Walmart, then help getting “free insurance.” I just had to hand over my name and address, to “confirm you’re eligible,” one scammer said. …

Still sitting in the lobby of the Harlem building, I dialed the number a couple more times, and each time reached a different grifter: I was eligible for another $100 gift card to Walmart, then help getting “free insurance.” I just had to hand over my name and address, to “confirm you’re eligible,” one scammer said. … 

Reached for this story, Social Security employees at the Harlem office did not answer detailed questions about how this version of the flyer came into existence. “We were made aware” of the scam number on the flyer, one ticket agent said, “and that’s why we stopped giving those out. … 

On closer inspection, the scam phone number was off by a single digit from the real direct line to the Manhattan Social Security office, and the phone numbers for other offices were legitimate….

SSA Employee Charged With Embezzling $1.8 Million

     From a press release:

On March 6, 2024, a federal grand jury in the District of Puerto Rico returned a 17-count indictment charging Myrna Faria, a.k.a. Myrna Oliveras-Santiago, with theft of government funds ...

According to court documents, Faria was employed by the Social Security Administration (SSA) from approximately 1991 through 2019 as a “Social Insurance Specialist” and “Claims Specialist” working in the Workload Support Unit in San Juan, Puerto Rico. From March 2012 through March 2024, Faria embezzled and stole SSA funds, namely Retirement Insurance Benefits, Survivors Insurance Benefits and Auxiliary Benefit payments, to which she knew she was not entitled. In total, Faria stole approximately $1,812,455.10. ...

Faria utilized her position within SSA to submit false claims on behalf of others, using the identity of individuals she believed to be deceased. She then approved those false claims and submitted her own bank and address information to fraudulently receive the corresponding SSA beneficiary proceeds. Faria proceeded to withdraw, transfer, and spend the money from the accounts that fraudulently obtained the SSA funds. Over the span of twelve years, Faria submitted and approved 13 fraudulent claims. A total of 10 fraudulent claims were still active and receiving funds as of the date of the Indictment. ...

O'Malley Has Plans To Deal With SSA's Overpayment Problems

     From KFF Health News:

The Social Security Administration’s new chief is promising to overhaul the agency’s system of clawing back billions of dollars it claims was wrongly sent to beneficiaries, saying it “just doesn’t seem right or fair.”

 In an interview with KFF Health News, SSA Commissioner Martin O’Malley said that in the coming days he would propose changes to help people avoid crushing debts ...

He said he has concrete steps in mind, such as establishing a statute of limitations, shifting the burden of proof to the agency, and imposing a 10% cap on clawbacks for some beneficiaries. ...

O’Malley said the agency plans to cease efforts to claw back years-old overpayments and halt the practice of terminating benefits for disabled workers who don’t respond to overpayment notices because they did not receive them or couldn’t make sense of them. ...

“One would assume that in a country where people are innocent until proven guilty,” he said, “that the burden should fall more on the agency than on the unwitting beneficiary.”

SSAB Study On Effectuation Of Disability Benefits

     The Social Security Advisory Board (SSAB) has done a study on Effectuation of Disability Benefits. It shows that there have been major increases in the time it takes to effectuate disability benefits, particularly SSI benefits. These delays are cruel. The claimant has already been found disabled. He or she is poor enough to qualify for SSI yet must wait many months to receive their benefits. That's wrong.

    Below are a couple of charts from the report showing what has happened. Note that the SSAB couldn't obtain good data from Social Security. They had to rely upon data from a large non-attorney representative group. That tells you that this hasn't been enough of a priority at Social Security to even collect good data on it. In addition to giving us an idea of the scope of the problem, the data also gives us an idea of the size of that non-attorney representative group.

Two Important Sets Of Final Regs

     The Social Security Administration has asked the Office of Management and Budget (OMB) to approve two sets of proposed regulations.

     Here's a description of the first for which approval has been requested:

We propose to update our regulations to reflect that we may authorize direct payment of representative fees to an entity itself, not only to representatives working for an entity, as required by the decision of the Court of Appeals for the First Circuit in Marasco & Nesselbush v. SSA. In accordance with the Marasco ruling, we propose a process for paying an entity directly, which involves requiring registration for all entities who wish to receive direct payment of assigned fees. We also propose several measures to standardize registration, appointment, and payment processes for all representatives who wish to be appointed on a claim, matter, or issue with us. These proposed changes will enable us to pay fees directly to entities in a timely and efficient manner. In addition to helping us implement the Marasco decision, these provisions will increase appointed representatives’ access to our electronic services, reduce delays, and thus improve program efficiencies for all representatives.

    Here's a description of the second set of proposed regulations for which approval has been requested:

We propose to develop intermediate improvements to reduce the burden in our current disability adjudication process as a step towards longer-term reforms to ensure our disability program remains current and supports equitable outcomes. Actions could include decreasing the years of past work we consider when making a disability determination, as well as other potential regulatory changes.

The development of this regulation was informed by a listening session conducted by our Office of Communications with advocacy groups representing claimants and beneficiaries.

Biden Proposes 9% Increase In Social Security Operating Funds

     From President Biden's budget proposal for Fiscal Year 2025, which begins on October 1, 2024:

... The Budget provides an increase of $1.3 billion, nine percent over the 2023 enacted level, to improve customer service at SSA’s field offices, State disability determination services, and teleservice centers for retirees, individuals with disabilities, and their families. The Budget also improves access to SSA’s services by reducing wait times. ...

    Nothing like this can be passed until after the election and only then if Democrats control the White House, Senate and House of Representatives -- and Senate Democrats are willing to scrap the filibuster, at least in part.

    In the lengthy supplement to the budget, the detailed explanation shows that program integrity would not increase. One complaint about recent appropriations is that there has been lavish funding of program integrity while basic operations have suffered greatly.

    The Commissioner of Social Security gets to include his own proposed budget for the agency in the supplement to the budget. Commissioner O'Malley's proposal is for the agency to be funded at $16.45 billion, about three quarters of a billion dollars higher than the President's budget but O'Malley has issued a statement praising the President's budget.

    The proposals of the President and the Commissioner are nice but restoring acceptable service at the Social Security Administration will have to be a multi-year effort.

    By the way, the Biden budget also calls for extending SSI to U.S. territories, such as Puerto Rico.

New Telework Wrinkle

     From Federal News Network:

... Under a new memorandum of understanding (MOU) between SSA and the American Federation of Government Employees, signed March 1, employees can now request “episodic telework” — or extra work-from-home days — when unexpected personal circumstances arise.

The new flexibility, which took effect March 4, gives SSA employees the option to occasionally request taking an extra day of telework in extenuating circumstances. That’s instead of having to take time off or dip into annual leave. ...

Agency spending levels are the next challenge SSA will face. To try to improve services and morale at SSA, AFGE is proposing a supplemental funding package of $20 billion over the next 10 years.

The highly anticipated budget proposal from House and Senate appropriators, which has a deadline of March 22, is unlikely to yield the results AFGE is hoping for.

“We’re severely underfunded in our operating costs, and current budget talks aren’t signaling that we’re going to get much money this year,” LaPointe said. “So, we’re really getting creative.” ...