IRS CEO warns of Social Security fraud dangers as Trump admin pursues task force

WASHINGTON (TNND) — IRS CEO Frank Bisignano is zeroing in on potential dangers of fraudulent use of Social Security benefits as the Trump administration continues to combat fraud.

Potential fraud threats include using a Social Security number belonging to someone else or someone who died, Bisignano said in an exclusive interview with The Baltimore Sun and “The Armstrong Williams Show.”

“The IRS has excellent civil and criminal investigators who pursue fraud,” Bisignano said. “The administration has also brought agencies together through a coordinated fraud task force. If you were running a company and trying to identify fraud, you would bring all relevant information and expertise together. You would not isolate the work in separate corners. The goal is to reduce fraud and identity theft for the benefit of American citizens. You’ll end up with less identity theft here.”

The Social Security Administration serves more than 300 million Americans and was born in 1935. Bisignano said his goal is to bring Social Security and the IRS into the modern era, while also protecting and preserving the program for the future. It all starts with getting rid of redundant documents.

“We began reconciling the Social Security number database, known internally as the Numident. It had never been fully reconciled,” Bisignano said. “When the president spoke about records showing people who appeared to be 150 or 160 years old, those records did exist. That did not necessarily mean those individuals were receiving benefits, but inaccurate or unreconciled records create vulnerabilities.”

Part of that also includes using artificial intelligence, or AI, to advance the agency. Bisignano said the IRS began using artificial intelligence “before everyone began calling it AI.”

“It is advanced technology that can learn and improve, much as the internet eventually became a normal part of everyday business,” he said.

However, he emphasized the importance of a human eye checking AI.

“We will use AI throughout many processes, but there will ultimately be a human being responsible for validating the result,” Bisignano said. “We must make sure the final product is accurate. The purpose is not to eliminate large numbers of employees. It is to provide better service, reconcile records and complete work that previously was not being completed.”

When it comes to tax filing and artificial intelligence, Bisignano compared where the IRS was to a baseball game, saying, “We are still in the bottom of the first inning when it comes to AI at the IRS.” He said they would be in a “stronger position” during the next filing season.

Bisignano said the one guiding principle of running the IRS is to “protect and preserve.” It is also President Donald Trump’s mission, he said.

“We are building the operational platform required to move forward,” Bisignano said. “When we improve accuracy, reduce waste and modernize the system, we strengthen the country’s ability to preserve Social Security for the future.”

That includes promoting future saving opportunities such as Trump Accounts. He said the accounts contribute to Americans understanding investments and benefits.

“We are also creating long-term savings opportunities through Trump Accounts, potentially reaching 70 million children,” Bisignano said. “Many of those children otherwise might never have been introduced to investing or the equity markets. This can become a vehicle for families, communities and philanthropists to invest in America’s future.”