New Social Security Identity Verification Rules Take Effect Amid Agency Restructuring

April 9, 2025

New identity verification requirements for Social Security beneficiaries took effect this week, requiring millions of Americans to verify their identity in person or online rather than by telephone for certain services. Americans seeking retirement or survivor benefits from the Social Security Administration (SSA) will no longer be able to apply over the phone as of Monday. Instead, they must seek services online or travel in-person to a local Social Security field office, which could mean a "45-mile trip for some 6 million seniors," according to an analysis from the Center on Budget and Policy Priorities.

Fraud Prevention Measures

The SSA describes these changes as "proactive steps to enhance the security of its services" that will "further safeguard Social Security records and benefits for millions of Americans against fraudulent activity." Lee Dudek, Acting Commissioner of Social Security, stated the agency has "listened to our customers, Congress, advocates, and others" and adjusted its policy accordingly. SSA

In response to concerns about accessibility, the SSA has exempted Medicare, disability, and Supplemental Security Income (SSI) applicants from the in-person requirement. These individuals can complete their claims entirely over the phone, as multiple verification opportunities exist during their application process. Fingerlakes1

The administration is also developing alternatives for those who cannot easily visit field offices. Delma Cardona, SSA's assistant deputy commissioner of operations, indicated the agency is working on a "video service delivery" option for identity verification and exploring a partnership with the U.S. Postal Service to provide additional verification locations. Federal News Network

Pushback From Advocates

Critics argue the new requirements create unnecessary barriers for vulnerable populations. Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, questioned the need for such strict measures, noting that "SSA has provided no evidence of direct deposit fraud that would require such heavy burdens on customers & staff." CNN

Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, called it "still bad policy," stating that "there was no reason to end the validation of identity by phone, and limiting it in any way creates an unnecessary hurdle for seniors and families claiming their earned benefits." NPR

Agency Budget and Workforce Concerns

The identity verification changes come during a period of significant restructuring at the SSA. The recently passed government funding bill allocated $14.127 billion for SSA administrative operations, plus an additional $1.63 billion for operational flexibility under the Balanced Budget and Emergency Deficit Control Act. Newsweek

However, the agency faces significant staffing challenges. According to data from the Medicare Rights Center, the SSA is currently at a 25-year staffing low while serving more beneficiaries than ever before. In 2015, the agency had 7,000 more staff serving 7 million fewer beneficiaries than today. Medicarerights

The SSA recently announced it would cut approximately 7,000 jobs, representing a 12 percent reduction in the agency's workforce. At the same time, the SSA is shutting down six of its ten regional offices. Americanprogress

Martin O'Malley, who served as commissioner under the Biden administration, warned that these cuts could leave the agency vulnerable to technical outages and potentially interrupt benefit payments. CNN

Financial Status of Social Security Trust Funds

The changes come as Social Security's long-term financial outlook remains a concern. According to the 2024 Trustees Report, the Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of scheduled benefits until 2033. After that, continuing program income would only be sufficient to pay 79 percent of scheduled benefits. Ssa

The trustees estimate that if policymakers take no further action, Social Security's combined Old-Age and Survivors Insurance and Disability Insurance trust fund reserves will be depleted in 2035, one year later than projected in last year's report. Cbpp

Despite challenges, Social Security is adequately financed in the short term, with a modest long-term financial shortfall amounting to 1.2 percent of GDP over the next 75 years. The program began running deficits in 2021, when total costs exceeded total income. Cbpp

Impact on Beneficiaries

Currently, 72.5 million Americans receive Social Security benefits, including retirees and children who receive retirement and disability benefits. While the immediate impact of the new verification rules and agency restructuring remains unclear, advocates warn that layoffs and office closures will reduce the agency's ability to serve recipients in a timely manner. Associated Press

The roughly 15 million recipients of Supplemental Security Income and Social Security Disability Insurance benefits—many of whom are severely disabled, destitute, or orphans—are among those most concerned about changes to service accessibility, particularly in rural areas where the nearest office may already be far away. ProPublica

As these new rules take effect, beneficiaries are encouraged to create a personal my Social Security account at ssa.gov/myaccount to avoid potential in-person requirements and to stay informed about changes to verification procedures.

Sources:

"New Social Security rules will create hurdles for millions of seniors, report finds" - NPR, Ashley Lopez - npr.org
"Social Security Updates Recently Announced Identity Proofing Requirements" - SSA Blog - blog.ssa.gov
"Social Security Strengthens Identity Proofing Requirements and Expedites Direct Deposit Changes to One Day" - SSA Blog - blog.ssa.gov
"Social Security officials partially walk back plans for in-person verification" - NPR - npr.org
"Social Security changes 2025: New identity verification rules explained" - Fingerlakes1.com - fingerlakes1.com
"Press Release" - SSA Press Office - ssa.gov
"Social Security Administration delays and curtails new anti-fraud policy" - CNN Politics - cnn.com
"New Social Security anti-fraud rule will force more people to visit agency offices" - CNN Politics - cnn.com
"Social Security Administration outlines new plan for stricter ID-proofing options" - Federal News Network - federalnewsnetwork.com
"What ID Is Needed for Social Security Ahead of Rule Changes?" - Newsweek - newsweek.com
"Trustees Report Summary" - Social Security Administration - ssa.gov
"Policy Basics: Understanding the Social Security Trust Funds" - Center on Budget and Policy Priorities - cbpp.org
"What the 2024 Trustees' Report Shows About Social Security" - Center on Budget and Policy Priorities - cbpp.org
"What New Government Funding Bill Means for Social Security" - Newsweek - newsweek.com
"DOGE is driving Social Security cuts and will make mistakes, acting head says privately" - The Washington Post - washingtonpost.com
"Social Security Administration could cut halve its workforce amid DOGE cuts" - AP News - apnews.com
"Trump Administration and Elon Musk's DOGE Closing Social Security Offices, Harming Access to Services" - Medicare Rights Center - medicarerights.org
"Cuts to the Social Security Administration Threaten Millions of Americans' Retirement and Disability Benefits" - Center for American Progress - americanprogress.org
"Social Security Administration: How slashing staff is sparking fears the system could collapse" - CNN Politics - cnn.com

SIDEBAR: THE REALITY OF SOCIAL SECURITY FRAUD AND IMPROPER PAYMENTS

While fraud prevention is cited as the primary rationale for the new identity verification requirements, the actual scale of fraud in Social Security programs appears to be significantly smaller than some recent claims suggest.

By the Numbers

From fiscal years 2015 through 2022, the Social Security Administration made approximately $72 billion in improper payments, according to the Office of Inspector General (OIG). While this figure sounds large, it represents less than 1 percent of the total benefits paid during that period.

More recently, the OIG reported that as of February 2024, SSA's record-high backlog of 5.2 million pending actions resulted in $1.1 billion in improper payments.

The Social Security Administration issues approximately $1 trillion in benefits annually to roughly 67 million people. Of these recipients, only about 0.1% are over the age of 100, contradicting claims about widespread payments to deceased beneficiaries.

Types of Improper Payments

Most improper payments are not the result of fraud but rather administrative errors:

• Overpayments due to unreported changes in beneficiary circumstances • Underpayments resulting from processing errors • Payment discrepancies caused by outdated information • System limitations in data sharing between agencies

Some overpayments are considered "unavoidable" by the SSA and not classified as improper payments because they're required by law. For example, when individuals appeal benefit cessation decisions, they can continue receiving payments during the appeals process, which become overpayments if the appeal is denied.

Government-Wide Context

In April 2024, the Government Accountability Office (GAO) estimated federal government fraud across all agencies at $233 billion to $521 billion annually. This figure represents approximately 3% to 7% of average federal outlays and includes all federal programs, not just Social Security.

Claims about widespread fraud in Social Security have been questioned by experts who note that the main threat to the program's long-term viability isn't fraud but rather demographic shifts—fewer workers paying into the system alongside a growing number of retirement-age Americans qualifying for benefits.

What's Being Done

The SSA is subject to ongoing oversight through the Government Charge Card Abuse Prevention Act and other accountability measures. The OIG conducts regular assessments of fraud risk within various SSA programs.

The OIG has made numerous recommendations to prevent improper payments before they occur and to detect and correct existing issues. However, many of these recommendations remain unimplemented, partly due to funding constraints.

At the end of fiscal year 2022, the SSA reported recovering over $4 billion in overpayments, though the agency still had approximately $21 billion in accounts receivable, primarily from overpayments owed by beneficiaries.

Sources: Social Security Administration Office of Inspector General reports, Government Accountability Office, PolitiFact, ABC News, Federal Trade Commission data

SIDEBAR: WILL BUDGET CUTS SAVE SOCIAL SECURITY? EXAMINING POTENTIAL SOLUTIONS

The new identity verification requirements and administrative cuts to the Social Security Administration are unlikely to meaningfully impact the program's long-term financial challenges. Here's why - and what solutions are actually on the table:

Administrative Savings vs. Trust Fund Shortfall

While the Social Security Administration reported approximately $72 billion in improper payments between fiscal years 2015 and 2022, this represents less than 1 percent of total benefits paid during that period. The scale of administrative savings from reducing fraud and waste, while important, simply doesn't match the magnitude of the funding challenge.

According to the 2024 Social Security Trustees report, the program faces cash deficits of $3 trillion over the next decade and will be unable to pay full benefits by 2033 when the Old-Age and Survivors Insurance trust fund depletes its reserves. At that point, without legislative action, beneficiaries would face a 21 percent across-the-board cut.

Major Reform Proposals

Several competing approaches to address Social Security's long-term funding challenges have been proposed in recent years:

1. Social Security 2100 Act

Sponsored by Rep. John Larson (D-CT), this legislation would increase benefits for all Social Security beneficiaries by about 2% and improve cost-of-living adjustments to better reflect seniors' actual expenses. It would increase Social Security revenues by imposing payroll taxes on individual earnings above $400,000 and reduce the program's 75-year shortfall by about half.

2. The TRUST Act

Introduced by Sen. Mitt Romney (R-UT) with bipartisan support from Senators including Joe Manchin (D-WV), the Time to Rescue United States' Trusts (TRUST) Act would create congressional committees specifically tasked with developing legislation to restore endangered federal trust funds, including Social Security.

The TRUST Act would establish commissions charged with securing programs like Social Security and Medicare "so that they are stronger, more effective, and continue to be there for current and future generations," according to Maya MacGuineas, President of the Committee for a Responsible Federal Budget.

Critics like Nancy Altman, president of Social Security Works, have expressed concern that the approach "lacks details or transparency" and could potentially lead to benefit cuts rather than increases.

3. Republican Study Committee Proposals

The Republican Study Committee's 2025 budget proposes "gradually raising the Social Security retirement age" among other changes. Previous versions of their proposal would raise the retirement age for full Social Security benefits to 69.

4. Brookings "Blueprint for a Bipartisan Solution"

This 2025 proposal aims to make the Social Security system "more progressive, primarily by raising taxes and reducing benefits for higher earners" while meeting its chief goal of making the system "virtually solvent" over the 75-year projection period.

Expert Assessments

Economists and policy experts generally agree that addressing Social Security's financial challenges will require substantial policy changes, not just administrative efficiencies.

According to the Committee for a Responsible Federal Budget, restoring solvency over the next 75 years would require the equivalent of "increasing the 12.4 percent payroll tax rate by 41 percent (5.1 percentage points) or cutting benefits by 27 percent for all beneficiaries."

Maya MacGuineas of the Committee for a Responsible Federal Budget notes that, "We know that we need to be addressing Social Security and Medicare because of the insolvency that they both face within roughly a decade," and that solutions may ultimately require "benefit cuts, tax increases or a combination of both."

Sources:

Social Security Administration Office of Inspector General reports
2024 Social Security Trustees Report
Committee for a Responsible Federal Budget
Brookings Institution
Congressional Budget Office
U.S. Senate and House websites
CNBC

Learn More:

Benefits under various reform plans

Demographics and the SS Funding Gap

SIDEBAR: THE FUTURE OF SOCIAL SECURITY - REFORM PROPOSALS AND BENEFIT PROJECTIONS

Current demographic and financial trends have placed Social Security on an unsustainable path. Without legislative changes, the program will only be able to pay about 79% of scheduled benefits starting in 2033 when the trust fund is depleted. Here's how major reform proposals would affect benefits over the next three decades:

Demographic Challenges Driving the Crisis

Social Security's financial challenges stem primarily from demographic shifts, not fraud or administrative waste. The worker-to-beneficiary ratio is projected to decline from 2.6 workers per beneficiary in 2025 to just 2.0 by 2055. Meanwhile, the percentage of Americans aged 65 and older will grow from 17.5% to 21.8% over the same period.

Comparing Reform Approaches

No Action (Current Law)

If Congress makes no changes, the trust fund will be depleted by 2033, forcing an immediate 21% cut to all benefits. This would reduce the average monthly benefit from approximately $1,890 to $1,494 (in 2025 dollars). Benefits would continue to decline gradually, reaching just 75% of scheduled amounts by 2055.

Social Security 2100 Act

This Democratic proposal would increase benefits by 2% across the board and improve the cost-of-living adjustment (COLA) formula to better reflect seniors' actual expenses. It would finance these improvements by applying the Social Security payroll tax to earnings above $400,000. Benefits would grow to 121% of current baseline by 2055, with the average monthly benefit reaching $2,178.

Republican Study Committee Plan

This approach would gradually raise the retirement age to 69 and modify the benefit formula. It avoids tax increases but reduces benefits to approximately 79% of currently scheduled amounts by 2055. The average monthly benefit would fall to $1,494 by 2055 (in real terms).

Bipartisan Blueprint (Brookings Proposal)

This 2025 plan from the Brookings Institution aims to make Social Security "more progressive, primarily by raising taxes and reducing benefits for higher earners." It maintains overall benefit levels at about 97% of scheduled amounts, with benefits varying by income. The average monthly benefit would grow modestly to $1,926 by 2055.

The TRUST Act (Hypothetical Outcome)

While the TRUST Act itself only creates a process rather than specific policy changes, a moderate bipartisan compromise through its commissions might combine modest benefit adjustments with tax increases. Such an approach would likely maintain benefits at about 90% of scheduled amounts, with the average monthly benefit holding steady around $1,710 by 2055.

Financial Outlook

The funding gap facing Social Security grows from 0.4% of GDP in 2025 to 1.5% by 2055. Addressing this shortfall would require the equivalent of "increasing the 12.4 percent payroll tax rate by 41 percent (5.1 percentage points) or cutting benefits by 27 percent for all beneficiaries."

The Window for Action Is Closing

Without legislative action, the "only way to resolve Social Security's imbalances is an implicit endorsement of a 21 percent benefit cut imposed on all beneficiaries regardless of age, income, or need." The longer Congress waits to act, the more difficult and disruptive the necessary changes will be.

Sources:

Social Security Administration, "2024 Annual Report of the Board of Trustees," May 2024, https://www.ssa.gov/oact/trsum/
Congressional Budget Office, "CBO's 2024 Long-Term Projections for Social Security," September 2023, https://www.cbo.gov/publication/60679
Committee for a Responsible Federal Budget, "Analysis of the 2024 Social Security Trustees' Report," May 2024, https://www.crfb.org/papers/analysis-2024-social-security-trustees-report
Brookings Institution, "Fixing Social Security: Blueprint for a Bipartisan Solution," February 2025, https://www.brookings.edu/articles/fixing-social-security-blueprint-for-a-bipartisan-solution/
Rep. John Larson, "Social Security 2100 Act," 2023, https://larson.house.gov/issues/social-security-2100-act
Sen. Mitt Romney, "Time to Rescue United States' Trusts (TRUST) Act," 2022, https://www.romney.senate.gov/romney-leads-bipartisan-coalition-introducing-trust-act/
Republican Study Committee, "2025 Budget Proposal," https://hern.house.gov/news/documentsingle.aspx?DocumentID=3040

New Social Security rules will create hurdles for millions of seniors, report finds : NPR

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