Nearly $99 million in federal payments directed to deceased individuals detected in the U.S.

The U.S. Department of the Treasury detected nearly $99 million in payments that were destined for deceased individuals, the agency reported on Tuesday. The finding emerged from a new verification process created to identify incorrect transfers before funds were sent.

The Treasury explained that the system reviewed more than 885 million payments valued at approximately $2.77 trillion. As a result, it found more than 4,900 payments totaling nearly $99 million that were addressed to deceased individuals.

Authorities indicated that those funds were not delivered. The payments were returned to the originating federal agencies for review before any disbursement.

"Treasury has fulfilled a key promise of President Trump's mandate to stop improper payments and fraud before money leaves the Treasury," said Treasury Secretary Scott Bessent in a statement cited by TNND.

"Together with Vice President Vance's Fraud Elimination Task Force, this new safeguard addresses a longstanding vulnerability and helps ensure that every dollar the federal government spends reaches its intended recipient. The Department of the Treasury will continue its efforts to modernize the federal payment system, strengthen protections against fraud and improper payments, and protect taxpayer money," Bessent added.

How Fraud Is Detected

The Department of the Treasury explained that it expanded its capabilities to detect irregularities through its "Do Not Pay" program and new payment verification tools.

The initiative has had legal backing since February, when the "Ending Improper Payments to Deceased People Act" was signed into law, granting the Treasury permanent access to the Social Security Administration's Full Death Master File. This registry makes it possible to verify whether recipients of federal payments are still living before authorizing a transfer.

Until then, the Treasury's access to that database had been part of a three-year pilot program approved following the Consolidated Appropriations Act of 2021. During the first year of the plan, the agency estimated net benefits of approximately $330 million between 2024 and 2026 thanks to the reduction of improper payments.