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American Focus > Blog > Politics > Waste of the Day: Covid Fraud Was “Readily Preventable” |
Politics

Waste of the Day: Covid Fraud Was “Readily Preventable” |

Last updated: June 20, 2025 10:30 am
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Waste of the Day: Covid Fraud Was “Readily Preventable” |
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Image: Evan-Amos, Wikimedia Commons

This story was initially published by Real Clear Wire.

By Jeremy Portnoy
Real Clear Wire

Overview:

In a staggering revelation, it has been reported that fraudsters absconded with approximately $79 billion from the federal treasury through the use of fictitious Social Security numbers during the Covid-19 pandemic. This audacious crime, described as “readily preventable,” occurred largely because federal agencies lacked a system to verify the authenticity of these Social Security numbers, according to a fraud alert issued on June 4 by the Pandemic Response Accountability Committee.

Key Points:

The audit scrutinized three primary Covid-19 relief programs: unemployment insurance, the Paycheck Protection Program (PPP), and Economic Injury Disaster Loans (EIDL). It estimated that as many as 1.5 million applicants submitted Social Security numbers that were either fabricated or illicitly obtained.

Auditors based their estimates on an “analytics platform” provided by Congress, which utilized data from the Social Security Administration. This raises a critical question: why is the government verifying applicants’ Social Security numbers only now, rather than before the funds were disbursed?

One would think that federal agencies would seamlessly access Social Security data to confirm individuals’ identities. Yet, the fraud alert indicates a web of bureaucratic red tape obstructing this process.

“Implementing new Social Security Number verification agreements between agencies and addressing the legalities of information-sharing can be a protracted affair,” auditors noted.

“Before the next natural disaster, health emergency, economic downturn, or similar crisis, it is imperative for program administrators to establish SSN verification agreements promptly. Such agreements would facilitate an information exchange as part of program integrity controls, aimed at preventing fraud, waste, and mismanagement, thus safeguarding taxpayer funds as intended by Congress when creating these emergency relief programs.”

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Interestingly, applicants for the Paycheck Protection Program weren’t even required to provide their date of birth. The auditors suggested that had they been, the amount of fraud uncovered could potentially exceed the alarming $79 billion figure.

Explore federal, state, and local salaries and vendor expenditures through the world’s most extensive government spending database at OpenTheBooks.com.

Context:

Federal agencies aren’t the only entities lacking critical information from the Social Security Administration. Recently, OpenTheBooks submitted a Freedom of Information Request seeking a breakdown of Social Security payments by age group, prompted by President Trump’s controversial claim that checks were being issued to individuals born in the 1600s. The response? No records exist. This raises eyebrows about whether the Social Security Administration is concealing information or if no one is diligently tracking payments by age group. Either scenario suggests a significant oversight.

Conclusion:

The federal government possesses a comprehensive database of every American’s Social Security number. There exists no plausible justification for not utilizing this resource to thwart billions of dollars in fraudulent claims.

The #WasteOfTheDay is sponsored by the forensic auditors at OpenTheBooks.com

This article was originally published by RealClearInvestigations and made available via RealClearWire.

TAGGED:COVIDDayfraudPreventableReadilyWaste
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