Social Security's fraud fighters say AI scammers are outpacing them
A top SSA watchdog official says AI-generated deepfakes and fake documents are driving a new wave of benefits fraud, and the government is still catching up.
What happened: At a government AI summit this week, Chad Bungard, chief strategy officer for the Social Security Administration's Office of Inspector General, said AI is reshaping benefits fraud faster than agencies can respond. Criminals are using AI chatbots, cloned voices and fabricated documents bearing real officials' names to divert Social Security payments and impersonate the agency. Bungard said SSA is racing to build its own AI defenses but is not yet using newer 'agentic' AI tools that could act more autonomously to catch fraud.
Why it matters: Social Security payments support tens of millions of Americans, and successful fraud means real money stolen from real people's accounts, sometimes redirected the moment scammers change direct-deposit details. Citing Deloitte and Accenture estimates, Bungard said AI-enabled fraud losses could hit roughly $40 billion by 2027. The same technology fueling faster scams is available to fraudsters and investigators alike, so which side adapts quicker determines whether that money gets stolen or protected.
How it works, plainly: In one common scheme, fraudsters buy stolen personal data from the dark web, then use AI chatbots or cloned voices to convince phone operators they are the real beneficiary, redirecting future payments to a new bank account. In another, AI tools generate convincing fake SSA letters or notices, sometimes using real employees' names, to trick people into handing over information or money. Both exploit how realistic AI-generated voices, text and documents have become.
The rollout: SSA and its inspector general's office co-chair an AI fraud subcommittee, formed in 2023, that meets quarterly with other agencies through the National Anti-Fraud Committee to review emerging threats and use cases. SSA OIG also shares intelligence and embeds staff with the Justice Department's new National Crime Defense Center, and is training supervisors and investigators on AI governance. Bungard said the agency wants to shift from chasing fraud after payments go out to stopping it beforehand, but admitted SSA isn't yet using agentic AI tools for detection.