WASHINGTON, D.C. — The U.S. Department of the Treasury announced a major milestone in its federal anti-fraud operations, revealing that a new screening system successfully flagged and blocked approximately 4,900 improper payments worth $99 million that were set to be sent to deceased individuals.
The intercepted funds were halted and returned to their originating federal agencies for review and cancellation before any taxpayer money left federal accounts.
The announcement comes as the Treasury completed a massive review of over 885 million federal disbursements totaling roughly $2.77 trillion.
How the Screening System Works
The newly deployed payment verification system relies on expanded access to the Social Security Administration’s Full Death Master File, allowing the Treasury to cross-reference payee data against death records in real time before disbursement.
Congress initially granted the Treasury temporary access to the database under a three-year pilot program through the Consolidated Appropriations Act of 2021, projecting $330 million in net savings between 2024 and 2026. That authority was made permanent when the Ending Improper Payments to Deceased People Act was signed into law, granting the Treasury continuous, long-term tools to audit outgoing payments.
The enhanced oversight aligns with executive efforts to curb government waste, including President Donald Trump’s Executive Order 14249, “Protecting America’s Bank Account Against Fraud, Waste, and Abuse,” and initiatives led by Vice President Vance’s Task Force to Eliminate Fraud.
“Treasury has delivered on a key promise… to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system,” Treasury Secretary Scott Bessent said in a statement. “This new safeguard addresses a longstanding vulnerability and helps ensure every dollar the federal government spends reaches its intended recipient.”
The Broader Fraud Prevention Challenge
While halting $99 million in payments to deceased recipients marks a significant victory for federal oversight, it represents only a small portion of the overall challenge facing federal agencies.
According to estimates from the Government Accountability Office (GAO), total improper payments across all federal programs could reach up to $500 billion annually. The Treasury indicated it will continue expanding its centralized Do Not Pay portal and automated verification capabilities across additional federal agencies to intercept fraudulent or erroneous disbursements before they occur.
