SSA Targets Growing Threat of AI-Enabled Fraud

The Social Security Administration is coordinating with federal agencies to combat a growing threat from AI-enabled fraud as criminals increasingly use deepfakes and other emerging technologies to impersonate people and trusted institutions.

As the federal government has moved quickly to adopt artificial intelligence, criminal groups have also embraced the technology, said Chad Bungard, chief strategy officer in SSA’s Office of Inspector General, at an event hosted by GovExec in Washington D.C. Tuesday.

Bungard said rapidly advancing deepfake technology that can realistically mimic human voices and images has fueled fraud schemes targeting SSA. These schemes include attempts to change direct-deposit information, spoof identities and impersonate trusted institutions, sometimes using the names of real employees to appear legitimate.

Citing data from Deloitte and Accenture, Bungard said losses from deepfake-enabled fraud are projected to reach $40.1 billion by 2027.

“It’s something we have to take seriously,” he said.

A National Strategy to Fight Fraud

To counter the rise in AI-enabled fraud, SSA and its OIG are participating in the National Anti-Fraud Committee. Bungard co-chairs the committee’s AI subcommittee with SSA’s chief AI officer. The committee brings agencies together to discuss emerging fraud threats, systemic vulnerabilities and potential steps to mitigate them.

“We discuss use cases that are being developed. We discuss risk assessments and need for risk assessments, and the evolving landscape,” he explained.

The committee is also focused on shifting from investigating fraud after it occurs to preventing fraudulent payments before they are distributed.

Tools and Coordination

SSA’s OIG is using a range of AI tools to support its work, from generative AI platforms for administrative tasks to more specialized tools designed to detect fraud. Bungard said SSA is also exploring potential use cases for more advanced agentic AI tools, but is still determining how to approach the technology.

“That’s something that we’re trying to get a hold of,” he said.

SSA OIG is also participating in the Justice Department’s recently launched National Crime Defense Center. Bungard said the office shares intelligence with the center and has embedded investigators and analysts supporting its operations.

Focus on Workforce and Governance

The agency is also focusing on workforce training and governance for AI.

Bungard said SSA is providing AI-related training to supervisors “who even touch AI” systems. The OIG is also developing governance frameworks and training for its staff and investigators as AI becomes a larger part of both fraud schemes and the tools used to combat them.

“We have some really good specialists on the investigative side of things,” he said.