Social Security Myths: Fraud, Immigrants, and Inmates - What’s Really Going On

Welcome to Season 1, Episode 41 of Winning Isn't Easy: Navigating Your Social Security Disability Claim. In this episode, we'll dive into the complicated topic of "Social Security Myths: Fraud, Immigrants, and Inmates - What’s Really Going On."

Most people hear the same viral stories about Social Security - “deadbeat fraudsters gaming the system,” “illegal immigrants draining benefits,” or “prisoners collecting checks from their cells.” These narratives spread quickly through headlines and social media, creating the impression that Social Security is overflowing with abuse. But the truth is far more nuanced. Fraud exists, but it’s rare, and the sensational cases you see in the news are the exception. Undocumented workers aren’t bankrupting the system; many actually pay into it knowing they’ll never receive benefits. And prisoners do not continue getting checks while incarcerated. In this episode of Winning Isn’t Easy, Nancy L. Cavey cuts through the noise to explain what’s really happening. She breaks down how Social Security evaluates disability claims, how contributions and eligibility work for citizens and non-citizens, and what the regulations actually say about fraud, incarceration, and repayment. Nancy also explores why these myths persist and how misunderstanding the system harms the people it’s meant to support. You’ll walk away with a clearer view of how Social Security functions, the safeguards already in place, and the facts behind the headlines. Understanding the truth is the first step. Let’s dive in.

In this episode, we'll cover the following topics:

One - Are There Really Deadbeat Frauds Collecting Social Security Disability?

Two - Are Illegal Immigrants Bankrupting Social Security?

Three - Are Prisoners Collecting Social Security and Bankrupting the System?

Whether you're a claimant, or simply seeking valuable insights into the disability claims landscape, this episode provides essential guidance to help you succeed in your journey. Don't miss it.


Listen to Our Sister Podcast:

We have a sister podcast - Winning Isn't Easy: Long-Term Disability ERISA Claims. Give it a listen: https://wiedisabilitypodcast.buzzsprout.com


Resources Mentioned In This Episode:

LINK TO YOUR RIGHTS TO SOCIAL SECURITY DISABILITY: https://mailchi.mp/caveylaw/your-rights-to-social-security-disability-benefits

FREE CONSULT LINK: https://caveylaw.com/contact-us/


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Need help with your Social Security Disability claim? Have questions? Please feel welcome to reach out to use for a FREE consultation. Just mention you listened to our podcast.

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Please remember that the content shared is for informational purposes only, and should not replace personalized legal advice or guidance from qualified professionals.

Transcript

Nancy Cavey [00:00:00]:
 Foreign. Welcome back to Winning Isn't Easy. Social Security Disability Benefits. This is a podcast where we break down everything that you need to know about navigating the Social Security disability disability claims system. Now, I'm your host, Nancy Cavey, and before we get started, I have to give you a legal disclaimer. This podcast isn't legal advice. The Florida Bar association says I have to tell you that. But nothing will ever prevent me from giving you an overview of the Social Security disability claims process, the games that are played, and what you need to know to get the Social Security benefits you deserve.
 
 Nancy Cavey [00:00:51]:
 So off we go. Now today I'm going to be diving headfirst into one of the most persistent myths about Social Security, from deadbeat frauds and illegal immigrants to prisoner collecting checks behind bars. Now, these stories circulate constantly in the news and are on social media. And more often than not, they're false. They are trying to make the system appear as if it's riddled with fraud and abuse. Ultimately, I think that's an excuse for changing or even eliminating the Social Security system. But let's talk about reality. Most people are surprised to learn that reality is far more nuanced.
 
 Nancy Cavey [00:01:31]:
 Fraud does exist, I'll admit that. But I find that it's rare. And usually high profile cases are the exception, not the rule. Now, illegal immigrants are not bankrupting the Social Security system. In fact, many contribute to the system without ever being able to collect. Got that? Not being able to collect. And how about prisoners? Well, guess what? They don't get paid while they're serving time. Though relatives may be eligible for their Social Security disability benefits, headlines are unfortunately sensationalized about what's happening in the Social Security system.
 
 Nancy Cavey [00:02:14]:
 And in this episode, I'm going to unpack what's really happening behind the myths. I'm going to break down how Social Security evaluates claims, how contributions and benefits work for both citizens and non citizens and what rules there are about fraud and incarceration. So by the time we finish with this episode, you're going to see the truth and are be able hopefully to ignore all the noise that is on social media and news. I want you to understand exactly how the system functions and be armed with the facts that headlines miss. Got it. So I'm going to talk about three things. Are there really deadbeat frauds collecting Social Security disability? Are illegal immigrants bankrupting the Social Security system? And and are prisoners collecting Social Security and bankruptcy the system? Okay, got it. We'll be back in a moment after we take a break.
 
 Narrator of Disability Insurance Advertisements [00:03:13]:
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 Nancy Cavey [00:03:39]:
 Welcome back to Winning Isn't Easy. Are there really deadbeat frauds collecting Social Security disability? Well, I hear that question all the time, and particularly when I turn on the news. Scroll through the social media feed on your phone, listen to the news, and you would think that the Social Security system is just full of deadbeat frauds collecting Social Security benefits. In fact, some of your neighbors may be even saying, hey, look, I know that this person across the street is collecting Social Security, but they don't look disabled. They must be committing fraud. Well, let's unpack this. There are some people who are committing fraud in the Social Security system, but the answer is that that is very rare. You're going to hear about it, obviously, because Social Security wants to make sure that the public understands that people who do commit fraud are going to be prosecuted and potentially jailed.
 
 Nancy Cavey [00:04:39]:
 And I have no problem with that. What I do have problems with, of course, is not telling the truth about what's actually going on. So let me give you an example of one of the most notorious cases of fraud. It happened in Kentucky where a Social Security disability lawyer, a judge and a physician conspired together. The physician would improperly and falsely certify that Social Security applicants met the strict medical listing criteria at step three of the Social Security evaluation process. Or they had so many restrictions and limitations that were so severe they couldn't go back to their past work or other work in the national economy. So then the lawyer would use this fraudulent document to file a claim and the judge who was part of the scheme would assign the case to himself. The result there was a fully favorable decision and kickbacks paid to all three of them.
 
 Nancy Cavey [00:05:35]:
 Now, of course, they eventually got caught, prosecuted and sentenced to prison. Every one of the those fraudulent cases was later re reviewed by legitimate judges. That's real fraud, but it's rare. Now, could there be some cases of, if you will, misuse or fraud in other circumstances? Yes, but it's not really the kind of fraud that you imagine. The more common type of fraud occurs when someone legitimately receives back benefits and then goes to work. So they're on the Social Security disability rolls, but they're working and they're not reporting their earnings and they are failing to enroll in in the Social Security Administration's Return to Work program. Now, this program exists precisely to allow recipients a trial work period without automatically losing their benefits. So bypassing it is illegal.
 
 Nancy Cavey [00:06:31]:
 Now, how about the other example I gave you, the person across the street who looks fine. Now, they're probably not a fraud. Disabilities aren't always visible. Many people with chronic pain, mental illness, autoimmune disorders or neurological conditions appear healthy to the outside world. And I will tell you, they wish they were healthy. But I represent many of them and they struggle daily. Social Security disability benefits are not easy. It's only awarded once the person passes through a rigorous five step sequential evaluation process that looks at the work history, medical records, functional limitations, their age, their education and transferable skills.
 
 Nancy Cavey [00:07:15]:
 Do you know that only 35 to 40% of initial claims are approved? So most successful applicants have to endure multiple rounds of appeals and many end up in front of a Social Security judge to determine their entitlement to benefits. So I will tell you, having done this work for many, many years, when someone is awarded benefits, it usually reflects a long, meticulous process which with significant medical documentation. However, if you truly believe somebody is frauding the system, defrauding the system, you can report it. You can call the Social Security Fraud Hotline at 1-800-269-0271 or visit www.socialsecurity.gov and click Report Fraud. Otherwise, please, please don't get swept up in this noisy nonsense of headlines and Internet outrage or sensational coverage and false claims in the news. The truth is rarely as simple as either the memes make it or certain channels make it seem. So please stay tuned. And the next thing I'm going to tackle is the hot button myth that I'm hearing all the time, all over the place.
 
 Nancy Cavey [00:08:32]:
 Are illegal immigrants really collecting Social Security benefits and are they bankrupting this Social Security system? Let's take a break. Welcome back to WINNING Isn't Easy. Are illegal immigrants bankrupting Social Security and improperly collecting Social Security benefits? Now, if you spend any time on social media or cable news, and we know who we're talking about, you probably have heard claims that are false, that illegal immigrants are draining or bankrupting the Social Security system. Let me answer this question that I get all the time. Is it really true? And the answer is, let's get the facts straight. An undocumented immigrant, someone in the United States without legal status, is not eligible for Social Security benefits. Let me repeat that. They are not eligible to collect Social Security benefits.
 
 Nancy Cavey [00:09:40]:
 Now, both retirement and disability benefits are earned through payroll taxes under the Florida I'm sorry? The Federal Insurance Contributions act. Fica. Look at your paycheck. You'll see the FICA withholdings. You will see that that's your contribution to the Social Security trust fund. Now, to qualify for benefits, a worker generally has to have paid into the system for a certain number of quarters. 20 out of the last 45 out of the last 10 years. And crucially, they must have a valid Social Security number.
 
 Nancy Cavey [00:10:12]:
 So what happens in reality? Many undocumented workers use false or borrowed Social Security numbers to get jobs. Their employers are still deducting the FICA taxes from their paycheck, and those funds go directly into the Social Security trust fund. But guess what? These workers do not have any legal status. They never collect a dime of the benefits they're contributing to. So in other words, illegal immigrants are actually subsidizing the Social Security system. According to some estimates, the billions of dollars from payroll taxes paid by undocumented workers flow into the trust fund every year. That money can never be claimed. Did you hear me? That money can never be claimed.
 
 Nancy Cavey [00:10:58]:
 So in a strange twist, the workers that are contributing to the solvency of the program are completely excluded from it because of their immigrant status. Now, how about legal immigrants? A legal noncitizen, such as a lawful permanent resident, visa holder, or refugee can qualify for Social Security benefits so long as they've contributed to the Social Security system and meet the same eligibility requirements as every US Citizen. They are part of the system in every sense, paying taxes and earning credits for benefits. This is entirely above board. It reflects that Social Security is. Is a contributory program and not necessarily one that is based on myths, if you will. So the next time you hear somebody claim that immigrants are draining the Social Security system, you can confidently say, that's not how it works. The truth is far less scandalous and much more nuanced.
 
 Nancy Cavey [00:12:02]:
 And again, these are the kinds of myths that are perpetuated in. In an effort to curb illegal immigration. And I have no problem with that. But it's actually false. I'm all about truth. And the truth is that an illegal immigrant can contribute to the Social Security system, but they can never collect benefits. Got it. So coming up next, I'm going to talk about another widespread misconception.
 
 Nancy Cavey [00:12:30]:
 Are prisoners collecting Social Security disability benefits while serving time in the pokey? Let's take a break.
 
 Narrator of Disability Insurance Advertisements [00:12:41]:
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 Nancy Cavey [00:13:12]:
 Welcome back to Winning Isn't Easy Are Prisoners Collecting Social Security Disability Benefits and Bankrupting the System? Now this is one worm myth that refuses to die. The idea is that prisoners are sitting in jail, collecting Social Security and bankrupting the the system. So here is the truth. You ready? If you are convicted of a crime and sentenced to jail or prison for more than 30 days, your Social Security benefits are suspended. Now that is going to include retirement benefits, disability benefits and SSI benefits. The whole gamut of benefits are gone. They're going to stop receiving those benefits for the duration of their incarceration. So no inmates are collecting Social Security benefits while sitting in jail.
 
 Nancy Cavey [00:14:08]:
 However, the only exceptions apply to family members. So if your spouse or your dependent children receive benefits based on your record, their payment will continue even if the person is in jail. Now, how about once you are released because you're not collecting anything, the prisoner is not collecting anything until they're released. Once you're out of the pokey, your benefits can be reinstated. But that's not automatic. You have to notify the Social Security Administration and complete reinstatement paperwork. And sometimes you actually have to go through a medical reevaluation if you were receiving disability benefits. Now, it's worth noting that these rules are not new.
 
 Nancy Cavey [00:14:56]:
 In fact, they go back decades, and they have been part of the Social Security Act's attempt to prevent overlapping public assistance. Why will jails and prisons provide free room and board, if you will? And so continuing the benefits would constitute a duplicate subsidy. And lawmakers want to avoid that. Of course, everybody wants to avoid that. So while prisoner benefits may make for catchy outrage posts and headlines, it's not how the system works. Taxpayers are not funding Social Security checks for inmates, and Social Security certainly isn't being bankrupt by people serving their sentences. So the takeaway from all of this is there is a ton of and I think purposeful misinformation out there about frauds, immigrants, prisoners and the whole Social Security system. The truth is that Social Security rules are detailed, strict, and constantly monitored for abuse.
 
 Nancy Cavey [00:15:57]:
 Real fraud exists, but it's rare and it's usually caught. So what are my closing thoughts? And you can hear I'm ranting a bit. And I'm ranting because I am really sick and tired of hearing these myths. In fact, I think they're flat out lies Please don't let headlines or social media soundbites shape your understanding of the Social Security system. The system is far from perfect, but it's built on detailed law, oversight, and decades of public service infrastructure. Most recipients, certainly the ones I represent, have fought hard and long to get their Social Security disability benefits. The reality is that all of this noise is distracting from the real problems. The Social Security Administration is underfunded and understaffed.
 
 Nancy Cavey [00:16:44]:
 Before the 25% reduction in staff, it was taking a year just to get a claims examiner assigned to handle the initial application. It's gotten far worse. So the real problem here is funding and staffing. And there are certain people parties that want to destroy the Social Security system. And if you don't believe me, read a certain document, Project 2025. It's all outlined exactly what the strategy is to try to destroy the Social Security system. So if you want the Social Security system to remain strong, you need to be calling your representative, your congressman, your senator, and let them know that you have some real problems with what is being attempted by Project 2025 and its followers to destroy the Social Security system. In fact, some of the changes that they are thinking about is to actually eliminate the grids at step five, which is advantageous for people who are over 50 and certainly advantageous for people over 60.
 
 Nancy Cavey [00:17:58]:
 This whole administration's approach is to limit benefits and to make it incredibly difficult to get the Social Security disability benefits that people have contributed to and they deserve. So if you want to keep Social Security strong, raise your voice and ignore the headlines and the social media sound bites that are trying to create a lot of disinformation about the Social Security system. So please stay informed, verify information before sharing, and help others understand how this really works. That's it for today's episode of Winning Isn't Easy. If you found this episode helpful, take a moment to like the page, leave a review, share it with your family and friends, and subscribe to our podcast. Thanks for tuning in today, Sam.