The Social Security Administration will now require beneficiaries to prove their identity when claiming benefits or changing their direct deposit information to crack down on fraud, a change that could affect millions of recipients and applicants.
Beginning on March 31, beneficiaries will no longer be able to verify their identity on the phone. They will either need to register for a “My Social Security” account online or visit a Social Security office. The change will apply to both new applicants and existing recipients who are looking to change their direct deposit information.
The pressure to tighten fraud controls comes as billionaire Elon Musk’s Department of Government Efficiency is working to shrink the size of the federal government and seeks to root out fraud and waste. President Donald Trump and Musk have narrowed their focus on what they allege are improper payments flowing out of the agency that provides retirement payments to older people.
The agency will train employees over the next two weeks before implementing the new measures, SSA said on Tuesday, mentioning that once enrolled, applicants will be able to have funds deposited in one business day, down from the previous 30 days.
The move to restrict assistance on the phone comes as DOGE has taken a chainsaw to the agency’s operations. At a time when SSA’s staffing is at a 50-year low, the agency announced plans to cut up to 12% of its workforce. It plans to close six of its 10 regional offices and offer early retirement to the staff, including payments of up to $25,000.
An internal memo circulated earlier this week from acting deputy commissioner for operations, Doris Diaz found the change could cause longer wait times and “increased challenges for vulnerable populations,” according to the Washington Post. The memo estimated that 75,000 to 85,000 customers per week would be directed to local field offices.
Staff working at the agency said they were perplexed by the changes considering the agency is planning to discontinue leases for dozens of offices across the country, according to the DOGE website.
“I’m just not sure how this is going to work considering there will now need to be many more in-person appointments,” said an employee who has worked at the agency for over a decade, speaking on the condition of anonymity. “It doesn’t really matter that they shortened the fund deposit time because it now requires a visit and some seniors could be forced to drive far distances because some locations have been shut down.”
“Having staff return to work indicated a shift to more in-person appointments, but why is [Voluntarily Early Retirement Authority] being offered to workers in operations, who don’t have enough people,” the person questioned. “It just doesn’t seem very intuitive.”
On a call with the press on Tuesday evening, the acting commissioner of the agency, Leland Dudek, downplayed the impact, arguing many were sites that hosted video hearings and did not serve many members of the public in-person. He mentioned a location in New York was shut down due to “health and safety reasons,” but did not specify which of the three locations he was referring to.
“We are losing over $100 million a year to direct deposit fraud,” Dudek said on the call. “This is going to drive some field volume, we understand that, we are going to adjust our policy and procedures to adapt to that volume.”
“These changes are not intended to hurt our customers, these changes are designed to make sure the right payment goes to the right person at the right time, this is a commonsense measure that every bank uses,” he added.
Dudek said he “made a commitment to the White House and Congress that we will monitor the situation closely, and if [the changes are] to the detriment of our citizens that we serve, then we’re going to take necessary actions to improve those services.”
Democrats are slamming the changes pointing out that they could hurt older people living in rural areas or those who don’t have access to transportation.
I’m deeply concerned by reports that Trump’s Social Security Administration might start phasing out phone support for seniors and force them to only seek help online or in-person.
The goal is clear: make seniors’ benefits so hard to access that they can’t get them at all.
— Mark Warner (@MarkWarner) March 18, 2025
“I’m deeply concerned by reporters that Trump’s Social Security Administration might start phasing out phone support for seniors and force them to only seek help online or in-person,” said Sen. Mark Warner (D-VA) in a post on X on Tuesday.
“The goal is clear: make seniors’ benefits so hard to access that they can’t get them at all.”
SOCIAL SECURITY ADMINISTRATION HEAD APOLOGIZES FOR MISTAKES AND TOUTS 3 MONTH DOWNSIZE PLAN IN MEMO
Earlier on Tuesday, Dudek sent staff an internal memo that detailed downsizing plans and efforts to implement artificial intelligence and acknowledged he made mistakes during his brief time leading the agency.
“I have made some mistakes,” he wrote in a memo, which was obtained by the Washington Examiner. “I will continue to make mistakes, but I will learn from them.”
The government watchdog for the Social Security Administration concluded last year that there were nearly $72 billion in improper payments from 2015 to 2022 or less than 1% of total benefits paid during the time period. Most of those payments, the report said, were overpayments, not to deceased Americans or people who did not qualify for them.
The Senate Finance Committee will hold a confirmation hearing next week for Frank Bisignano, a financial tech executive who was tapped by President Donald Trump to lead the agency permanently.
