Elon Musk recently mentioned at a rally supporting Brad Schimel, a Wisconsin Supreme Court candidate, that a Social Security fraud suspect was on the verge of being arrested. This disclosure of ongoing investigation details during a political gathering caused backlash from law enforcement officials who felt it was inappropriate.

There are always ongoing investigations into fraud cases, so Musk’s revelation was not groundbreaking. The Social Security Administration has well-established systems in place to detect, prevent, and catch fraudsters. However, Musk’s efforts under the Department of Government Efficiency might be undermining these systems, making fraud more likely to occur.

Instances of fraud within Social Security are relatively rare, with only 0.00625 percent of all expenditures linked to fraudulent activity. This rate is significantly lower compared to private sector insurance fraud levels. Most fraud cases involve the illicit acquisition of benefits or Social Security Numbers, which are typically reported by individuals promptly, leading to the reversal of the fraudulent attempt.

Musk’s recent initiatives seemed to target the small fraction of fraud attempts made through the agency’s 1-800 hotline. Plans were in place to restrict most beneficiaries from proving their identities over the phone, but public resistance led to a reversal of that decision.

Although Musk and Vice President JD Vance claimed that a significant number of hotline calls were fraudulent, data shows that only a minute portion of the calls were successful in direct deposit fraud. To address this issue, Musk’s administration was potentially requiring millions of additional individuals annually to visit field offices in person, hampering those with limited mobility.

In the midst of these changes, reports have surfaced about scammers posing as Social Security employees, exploiting beneficiaries by threatening benefit suspension unless personal information is provided. Musk’s alterations to Social Security processes, combined with his unwarranted criticism of the system, may be creating an environment where fraud attempts could proliferate.

Ultimately, Musk and his administration’s impact on Social Security operations, including workforce reductions and contract cancellations, may lead to increased waste, fraud, and abuse within the system. The changes made by Musk seem to be driven by political considerations rather than the well-being of Social Security beneficiaries.