Treasury Fraud System Stops Nearly $100 Million in Payments Linked to Dead Recipients
The U.S. Treasury Department says a newly expanded payment verification system has prevented nearly $100 million in taxpayer funds from being distributed to deceased recipients as part of a broader effort to identify improper payments before federal money leaves government accounts.
The Treasury Department’s Bureau of the Fiscal Service uncovered more than 4,900 attempted disbursements associated with deceased individuals after reviewing approximately 885 million federal payments totaling nearly $2.7 trillion.
The payments, valued at about $99 million, were prevented from being issued and sent back to the federal agencies that initiated them for review.
Treasury officials said payments connected to deceased recipients can indicate improper payments and may require additional review to determine whether fraud or administrative errors occurred.
The department said the verification process is designed to identify issues before taxpayer funds are transferred rather than attempting to recover money after payments have already been made.
Treasury Secretary Scott Bessent said the department’s expanded safeguards were part of an effort to reduce improper payments and strengthen the federal payment system.
“Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system,” Bessent said in a statement.
The Treasury Department’s Bureau of the Fiscal Service uncovered more than 4,900 attempted disbursements associated with deceased individuals after reviewing approximately 885 million federal payments totaling nearly $2.7 trillion.
The payments, valued at about $99 million, were prevented from being issued and sent back to the federal agencies that initiated them for review.
Treasury officials said payments connected to deceased recipients can indicate improper payments and may require additional review to determine whether fraud or administrative errors occurred.
The department said the verification process is designed to identify issues before taxpayer funds are transferred rather than attempting to recover money after payments have already been made.
Treasury Secretary Scott Bessent said the department’s expanded safeguards were part of an effort to reduce improper payments and strengthen the federal payment system.
“Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system,” Bessent said in a statement.
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