Criminals have been cashing in on the social safety net by using stolen Social Security numbers and the identities of dead people to tap federal welfare programs like Medicaid and SNAP. The result, according to a new report, is a tangle of duplicate enrollments, bogus SSNs and cross state mismatches that watchdogs say are draining taxpayer funded benefits instead of helping the people they are meant to serve.
That warning comes from a report by the Foundation for Government Accountability, which was shared with The Daily Signal. One example in the paper shows a single Social Security number tied to wages from 15 different employers across 14 states in only three months, and auditors flagged more than a million questionable food stamp enrollments. The FGA says those duplicate and deceased person enrollments, dummy SSNs and missing identity checks have allowed fraudsters to collect millions across state programs (Foundation for Government Accountability).
How the system makes it easy
Federal data show SNAP is enormous, costing more than $100 billion a year, and the Food and Nutrition Service's quality control report put the national payment error rate at about 10.9% for FY2024, a gap that amounts to roughly $10 billion in improper payments. USDA FNS's review says paperwork mismatches, outdated death records and inconsistent SSN verification all help create cover for fraud. Program integrity experts argue that routine cross checks and tighter identity verification would cut down the noise that lets abuse hide in plain sight.
What watchdogs and lawmakers are proposing
The FGA recommends requiring identity verification at enrollment, a change the group estimates would save about $29 billion over a 10 year window, according to reporting by The Daily Signal. “We require people to show an ID to get a library card, but states aren’t required to verify who you are before putting you on a welfare program,” FGA senior fellow Michael Greibrok told the outlet. The paper also highlights provisions in the One Big Beautiful Bill Act that pause a prior federal rule and push states toward more frequent death record checks and monthly SSN reporting as near term fixes.
Why Columbus and Ohio should pay attention
This kind of fraud is not abstract in Ohio. State and local authorities have been prosecuting provider and benefits scams and trying to claw back improper payments. Medicaid crew nailed in care cash scam coverage has tracked recent Columbus area Medicaid enforcement, and local outlets including MyFOX28 Columbus have put the new FGA findings in front of Central Ohio readers.
What to watch next
Expect the debate to move quickly from reports to audits and possible rule changes. Federal agencies and Congress are already signaling tougher oversight and more technical help for states, and lawmakers on Ways & Means are pushing program integrity language. How states respond, whether by tightening their own enrollment checks or leaning on expanded federal reporting, will determine whether the next round of reforms really shuts down identity based welfare fraud or just trims around the edges.
