Elon Musk has been moving fast and breaking things in the federal government. Entire agencies have been largely shut down due to the Department of Government Efficiency, which aims to reduce federal waste.
No agency or program seems to be safe from scrutiny. Not even Social Security. The tech billionaire recently called Social Security a "giant Ponzi scheme" and suggested that millions of dead people are receiving benefits.
"The agency's records are highly accurate," the Social Security Administration said in a press release that explained how it records deaths.
Don't Miss:
- Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
- Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!
How Are Deaths Collected?
When someone passes away, Social Security needs to know so it can stop sending payments. The SSA details how they obtain this information.
"Deaths are reported to Social Security primarily from the States," the agency said. The information sometimes comes from family or relatives, but it typically comes from the state. Federal agencies and financial institutions can also notify Social Security about a death.
Social Security leans heavily on information it receives from funeral homes, along with friends and relatives of the deceased. It views first-party reports as immediate verification and puts the person's information in the Death Master File.
Trending: Bezos' Favorite Real Estate Platform Launches A Way To Ride The Ongoing Private Credit Boom
The Financial Hardships Of Erroneous Death Reports
The SSA explained how people are negatively impacted if they are mistakenly labeled as dead while receiving Social Security benefits.
"Instances when a person is erroneously reported as deceased to Social Security can be devastating to the individual, spouse, and dependent children. Benefits are stopped in the short term, which can cause financial hardship until fixed and benefits [are] restored, and the process to prove an erroneous death will always seem too long and challenging," the SSA said.
Social Security mentions this financial hardship as DOGE reviews the administration's records. While the removal of fraudulent payments is always welcome, the SSA seems concerned that DOGE can potentially remove people from the system who are still alive.
The Clash Isn't Over
Public sector jobs once had a reputation for being stable income sources, but the Trump administration has thrown this concept out the window. DOGE continues to recommend job cuts to boost the government's fiscal strength. Meanwhile, Musk has repeatedly called out Social Security and aims to address any potential fraud in the system.
Musk recently alleged that Social Security handed out more than 5 million Social Security numbers to non-citizens between 2021 and 2025, with a big surge in 2024. The big boost aligns with Musk's claim that Social Security offered a "massive financial incentive" for non-citizens to arrive in the U.S. and vote for Democrats.
As the DOGE team continues to snoop around, it will likely face more backlash from Social Security and other federal agencies.
Read Next:
- It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.
- Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.