The Social Security Administration (SSA) has announced significant updates to its identity proofing and direct deposit processing procedures.

Starting March 31, 2025, the SSA will enforce stricter identity proofing protocols for benefit claims and direct deposit changes. Beneficiaries and applicants who cannot verify their identity online through their “My Social Security” account must visit a local SSA office in person. This change eliminates the option to verify identity over the phone, which was previously available. Claims initiated by phone will not be processed until in-person identity verification is completed.

The new requirements apply not only to new applicants but also to current beneficiaries who wish to make changes to their direct deposit information. This means that any updates to payment methods or other sensitive account details will require either online or in-person verification.

SSA plans to implement the Department of Treasury’s Account Verification Service (AVS). AVS provides instant bank verification services, helping prevent fraud associated with direct deposit changes. Direct deposit change requests will now be processed within one business day, whether submitted online or in person. Previously, online changes could take up to 30 days.

Advocates have raised concerns about how these changes may disproportionately affect older adults, individuals with disabilities, and those without reliable internet access. The requirement for in-person visits could create barriers for people living far from SSA offices or those with mobility challenges.

Additionally, SSA plans to close 47 field offices nationwide as part of cost-cutting measures introduced by the Department of Government Efficiency (DOGE), led by Elon Musk under the Trump administration. Of these, 26 closures are scheduled for this year alone, with some taking effect as early as next month. These closures are concentrated in Southern and Southeastern states, regions where access to SSA services is already limited.

SSA is also cutting approximately 7,000 employees this year, reducing its workforce to around 50,000. This staffing decrease is expected to exacerbate delays in processing applications and resolving service issues. Reports indicate that wait times for appointments are already averaging over a month in many locations.

Elon Musk and other officials have claimed “massive fraud” in Social Security, citing figures like $70 billion lost to fraud annually. A 2024 report by Inspector General Michelle Anderson found that between fiscal years 2015 and 2022, the Social Security Administration (SSA) made nearly $72 billion in improper payments, primarily overpayments. Improper payments include overpayments due to administrative errors or beneficiaries failing to report changes in their circumstances, and do not necessarily indicate criminal intent These improper payments represent less than 1% of the total benefits disbursed during that period, but $23 billion remains unrecovered.

Allegations that tens of millions of deceased individuals are receiving Social Security benefits are unfounded. SSA audits show that nearly all beneficiaries over age 100 are legitimate recipients, and discrepancies in death records are primarily due to outdated systems rather than widespread fraud.

Fraud involving deceased individuals does occur but is limited. For example, a pilot program recovered $31 million in improperly issued federal payments to deceased individuals, which is a small fraction of the total improper payments identified.