Fact Check: Social Security has a fraud rate of 0.00625%, which is far lower than private sector retirement programs.

Fact-Check: "Social Security has a fraud rate of 0.00625%, which is far lower than private sector retirement programs."

What We Know

The claim that "Social Security has a fraud rate of 0.00625%" is supported by various credible sources. According to a Congress.gov report, this figure represents the percentage of Social Security benefits lost to fraud, which is indeed 0.00625% of the program's annual budget. Additionally, a Brookings Institution article corroborates this statistic, stating that claims of widespread fraud in Social Security are misleading and emphasizing that this fraud rate is significantly lower than that of many private sector retirement programs.

Furthermore, a Washington Post article clarifies that only 0.00625% of Social Security benefits are lost to direct-deposit fraud, further validating the original claim. Nancy Altman, president of Social Security Works, also noted that less than 1% of Social Security payments are improper, which aligns with the reported fraud rate and indicates that the rate is lower than that of private sector programs (ThinkAdvisor).

Analysis

The evidence supporting the claim comes from multiple reputable sources, including government reports and analyses from established think tanks. The statistic of 0.00625% is consistently cited across these sources, indicating a strong consensus on the accuracy of this figure.

The reliability of these sources is high. The Congress.gov report is an official government document that provides an overview of Social Security fraud, making it a primary source of information. The Brookings Institution, a respected think tank, is known for its rigorous research and analysis, adding credibility to its findings. The Washington Post is a well-regarded news organization that adheres to journalistic standards, and its reporting on this topic is backed by factual data.

In contrast, while some sources may have a vested interest in promoting a narrative about Social Security fraud, the consistent reporting across multiple independent sources suggests that the claim is accurate and not exaggerated. The comparison to private sector retirement programs is also significant, as it highlights the relative efficiency and integrity of the Social Security system compared to private entities, which often have higher rates of fraud and error (DISA).

Conclusion

The claim that "Social Security has a fraud rate of 0.00625%, which is far lower than private sector retirement programs" is True. The evidence from multiple reliable sources confirms that this statistic accurately reflects the current state of fraud within the Social Security system, and it is indeed lower than the fraud rates typically observed in private sector retirement programs.

Sources

1. March 25, 2025 Social Security Fraud Overview - Congress.gov
2. DOGE is disrupting Social Security - Brookings Institution
3. Comparing Replacement Rates Under Private and Federal - SSA
4. JD Vance's whopper on alleged Social Security fraud - Washington Post
5. No, Social Security Is Not Rife With Fraud - ThinkAdvisor
6. Clarification of Social Security Fraud Allegations | DISA
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