Some lies are benign, like telling children Santa Claus is coming or covering up a special surprise for a loved one. Other lies are far more sinister, with some even considered as federal crimes that can be charged accordingly.
When a person applies for Social Security Disability (SSD) benefits, they should only be doing so if they have a real disability. Lying to receive these benefits is charged as a felony on the federal level. The severity of penalties doled out for this crime will depend on the amount of fraudulently received money and the individual’s role in the scheme. Since many people deserve these benefits, the Social Security Administration (SSA) takes cases of suspected fraud very seriously and thoroughly investigates them.
What Are the Criminal Penalties for Lying to the SSA for SSD Benefits?
If you were to knowingly make false statements to obtain benefits from the SSA, you could face felony charges along with strict federal penalties. Should you be convicted, you may spend up to five years in federal prison and receive fines up to $250,000.
Often, schemes come about from those in trusted positions, including doctors, attorneys, and even SSA employees, and people in these types of positions face higher penalties with up to 10 years in prison. If an organization is involved in the fraud, it will face fines up to $500,000.
Other Consequences of Committing Disability Fraud
While the penalties for the crime are severe, there are additional financial and benefit-related consequences. The SSA will also work to recover any money that was fraudulently paid out, demanding full restitution for all illegally-received benefits. Anyone caught in such a fraud scheme will also be disqualified from receiving future benefits. They may also be subject to civil lawsuits that can bring additional fines for their false statements.
It is important to remember that making a mistake on your form and deliberately falsifying records or lying are not the same. If you’ve accidentally made an error, you will not be charged with fraud, though you may be denied your SSD benefits until you can provide proof.
How Does the SSA Detect Fraud?
Both the SSA and the Office of the Inspector General (OIG) use a variety of methods to detect and investigate fraudulent disability claims. The application process helps to weed out potential fraudsters, and the SSA will cross-reference each application with the applicant’s medical records, financial statements, and other types of official reports. If something doesn’t add up, they will investigate to determine if there is fraud or if an error has been made.
Additionally, Social Security Disability will investigate beneficiaries at periodic intervals to ensure that they still meet the requirements to receive their disability benefits. A recipient who fails to report medical improvement or their return to work will be flagged for committing fraud.
Anyone who observes a friend, family member, neighbor, or coworker committing disability fraud can also make a report through an anonymous tip hotline. The reported tips will be investigated to determine if they are truly committing fraud. In some cases, especially when organizations have created a fraud scheme, investigators may use surveillance. They will monitor a person they suspect of lying about disability for the benefits in many ways, including watching their social media activity to see if it aligns with the disability they claim.
How Do People Lie About Disability?
Lying to obtain disability benefits is a serious crime, and people use it as a way to get out of working. There are many types of fraud, from deliberately lying on the initial application to hiding information.
Keep in mind, an accidental typo or making a mistake on the application is not fraud. However, if you do something, such as lie about how much you earn to put yourself in the eligibility category for benefits, then that is considered fraud.
Another common lie told to SSA to fraudulently obtain benefits is concealing medical improvements. A person may legitimately qualify for these benefits, but in the case of short-term disability, if they fail to report that their condition has improved and keep collecting benefits, it is fraud. If your condition has improved, make sure that you report it to avoid facing federal charges.
Some schemers will even create or alter medical documents to exaggerate an injury or illness. This is another type of fraud and can lead to time behind bars in a federal prison. Perhaps the worst type of fraudulent activity when falsely claiming disability benefits is to conceal the death of someone who was qualified to receive the money. When a relative who is on disability dies, the SSA should be notified. Lying to keep getting checks and then using that money is a serious crime.
What to Do If You Are Under Investigation for Disability Fraud
It should be noted that the overwhelming majority of people who apply for SSD are doing so because they have a legitimate disabling condition. With that said, many people accidentally fill out the forms incorrectly or contradict their medical evidence.
The SSA will start investigating your claim if it suspects any fraud is taking place. They may soon realize that any error you made was not a deliberate attempt at fraud. They may also investigate you at different intervals to ensure that your income level and disability still qualify you to receive these benefits.
If you have a qualifying disability or illness, it is best to work with a disability attorney from the start. They can help you by ensuring all applications are completed correctly and are submitted on time. They will also help you organize all medical documentation to provide the necessary proof. It will be far less likely that you will be scrutinized for disability fraud with the assistance of an attorney. If you filed on your own and are being investigated, seeking legal counsel is advised.
