Government Officials Address Fraud in Federal Payments
On Tuesday, Frank Bisignano, the Administrator of the Social Security Administration (SSA) and CEO of the IRS, emphasized ongoing efforts to tackle “fraud, waste, and abuse,” revealing that around $100 million in federal payments linked to deceased individuals had been identified.
The Ministry of Finance announced, through a press release, a new system for payment verification across the government, aimed at preventing payments to individuals who have passed away.
“So far, the Treasury Department has examined over 885 million payments totaling about $2.77 trillion,” stated the release. “As part of our new payment verification process,” it continues, underscoring the scale of the initiative.
According to Bisignano, the screening process led to the discovery of more than 4,900 payments, amounting to nearly $99 million, that were incorrectly directed to deceased beneficiaries. These payments were subsequently returned for review before any further disbursement occurred.
After making this announcement, Bisignano appeared on CNBC, reiterating that the government is committed to stopping fraudulent payments linked to deceased individuals. Asked about how this fraud was uncovered, he attributed the success to teamwork among officials, including the Vice President and the Secretary of the Treasury.
He commended President Donald Trump for leading a cooperative effort across various agencies to combat fraud. “This platform—eliminating fraud, waste, and abuse—is something we’ve prioritized since we came into office,” he remarked.
Bisignano continued, noting that the collaboration established among the SSA, Treasury Department, and other branches of government was unprecedented. “The Treasury is taking action to ensure payments are not made where they shouldn’t be,” he added.
During his address, he acknowledged that the struggle against fraud is ongoing. “We plan to keep this momentum going. There’s been significant work within the SSA to cut down on incorrect payments,” he stated. “Expect continued efforts to eradicate fraud and waste; it’s a lifelong commitment.”
In remarks shared with the media, Treasury Secretary Scott Bessent praised Bisignano’s work in streamlining processes and improving taxpayer service. “He’s a remarkable leader, focused on reducing waste and modernizing our operations,” Bessent noted.
In a separate interaction with CNBC, Bisignano took issue with an article from the Wall Street Journal that made claims about him spying on coworkers during his time at J.P. Morgan. “There are no verified sources in that piece,” he argued, emphasizing that his professional history is clear and unblemished. “This is a case of really poor journalism,” he insisted.
Adding to this, Bisignano’s attorney, Courtney Forrest, stated that he has never engaged in surveillance of any colleagues or directed anyone to look into employee communications. “There’s no truth to the claims made,” she asserted.
Forrest further added that J.P. Morgan’s CEO, Jamie Dimon, “never urged Mr. Bisignano to leave” and that Bisignano’s departure was voluntary for him to pursue leadership at First Data.
