2 Out of 3 Retirees Think Social Security Fraud Is a Big Problem - Are They Right?

Social Security is a cornerstone of retirement income for millions of Americans, but growing concerns about fraud are making many question how safe their benefits really are. According to new data from The Nationwide Retirement Institute 2025 Social Security Survey, two out of three retirees believe fraud within the system is a serious problem — and nearly half think it's draining the fund faster than expected.

As stories of scams and stolen benefits make headlines, it's understandable that retirees feel uneasy. Understanding the facts behind these fears is key to protecting your income and helping you retire comfortably with confidence.

Nationwide's 2025 Social Security Survey explained

The Nationwide Retirement Institute 2025 Social Security Survey, conducted online by The Harris Poll, gathered insights from 1,812 U.S. adults aged 18 and older who either receive or expect to receive Social Security. The sample included 301 Gen Z adults (ages 18–28), 504 Millennials (ages 29–44), 505 Gen Xers (ages 45–60), and 502 Boomers+ (ages 61 and older).

The survey ran from June 2 to July 10, 2025, and data were weighted to reflect accurate U.S. population proportions across age, gender, race, income, and region.

The survey reveals just how deeply retirees worry about the stability of Social Security — particularly when it comes to fraud and misuse of funds. With so much uncertainty, protecting your benefits is an essential step to help you retire comfortably and confidently.

Two-thirds think fraud is a big problem within the Social Security system

As per the survey, about two out of three (65% percent) of respondents said they believe fraud is a significant issue within Social Security, with 26% strongly agreeing and 40% somewhat agreeing.

These perceptions may be shaped in part by some high-profile cases of internal and external fraud. Even when such cases represent a small fraction of overall benefits, their visibility in the media can erode trust. For many retirees, the fear isn't just losing faith in the system — it's worrying their own benefits could be compromised.

Nearly half believe fraudulent claims are draining the Social Security fund

According to the survey, 48% of respondents believe that fraudulent beneficiaries are contributing to Social Security's long-term funding challenges.

This concern may reflect a broader sentiment that improper payments — including overpayments, identity theft, or falsified benefit claims — could hasten depletion of the Social Security trust. While the SSA has measures in place to prevent fraud, some remain skeptical that these safeguards are enough to stop every bad actor.

Almost half think fraud prevention should be a top SSA priority

Similarly, the survey found that 45% of respondents believe fraud prevention and system security are among the most urgent areas the Social Security Administration (SSA) should improve.

Given that the SSA disburses benefits to more than 74 million Americans each month, the scope for potential errors or misuse could be vast. Even minor breaches — such as stolen identities or incorrect direct deposit details — could cause serious stress for beneficiaries relying on timely payments.

Real-world Social Security fraud cases show the risk is real — but rare

While large-scale Social Security fraud isn't rampant, notable cases do exist. In June 2025, an SSA employee pleaded guilty to a multimillion-dollar fraud scheme, using false benefit claims and identity theft to steal from the system.

In 2024, two defendants were sentenced for stealing benefits from deceased beneficiaries — a reminder that fraud often exploits administrative loopholes.

At the same time, Congressional reports also highlight recurring issues like overpayments and representative payee abuse. Though these types of cases represent a small percentage of total payments, they show that vigilance is necessary to protect the program's integrity.

Steps retirees can take to protect themselves against Social Security fraud

You can't control the entire system, but you can reduce your personal risk. Regularly review your Social Security statement at SSA.gov/myaccount to verify your earnings history and check for discrepancies. Avoid sharing your Social Security number unless absolutely necessary, and watch for phishing emails pretending to be from the SSA.

If you receive suspicious calls or messages, report them to the Office of the Inspector General (OIG) at oig.ssa.gov/report. Staying proactive is your best defense against scams that target retirees' benefits.

If your payment doesn't arrive

If your Social Security payment hasn't shown up, don't panic — delays occasionally happen. First, check your bank account to confirm the deposit didn't post late. Then, verify that your direct deposit information on file with the SSA is accurate.

If the issue persists, contact the Social Security Administration directly at 1-800-772-1213 or visit your local office. Never rely on unofficial sources or third-party "fixers" promising to recover your payment faster; these are often scams in disguise.

Bottom line

Social Security fraud does exist — but despite high-profile cases, it remains relatively rare compared with the overall scale of benefits paid. Still, the perception of widespread fraud can erode trust and create unnecessary anxiety among retirees.

By staying alert, using official SSA resources, and keeping your personal information secure, you can safeguard your benefits and feel more confident about your retirement plan. Vigilance today can help protect the income you've earned for tomorrow.