Avoid a Social Security Clawback from DOGE

The chaos of a Trump presidency has us being attacked from every angle. When it’s not one thing, it’s another. It’s hard to keep up, but if you’re not informed, the financial impact can be devastating. That’s evident with the latest issue of Social Security clawbacks.

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DOGE, in their infinite wisdom, who had a 19-year-old create some sort of code, has succeeded so far in finding nothing, especially fraud. Seen any arrests yet? You might argue it takes time to build a case, but the Department of Justice hasn’t even held a press conference on the issue. Do you know why? Because they haven’t found any fraud.

But that’s not the main issue. My concern now is with Social Security clawbacks. Hopefully, those checks don’t end up delayed because that would lead to serious nationwide problems. I can’t recall the name of the person, but the wealthiest member of Congress—yes, that alone says a lot—was on Fox News saying, “If my 94-year-old mother-in-law gets her Social Security check a week late, she’ll just say, ‘Oh, it’s only a week late. No big deal.’”

• Protecting Your Social Security Income in Bankruptcy

What an idiotic, tone-deaf thing to say. Her son-in-law is wealthy; why would she be concerned? This is why I keep emphasizing that people need to stop regurgitating information and start applying critical thinking skills.

But that’s not even my focus today. My issue today is this: Elon Musk and DOGE have claimed that they’ve been finding dead people, some 150 years old, still collecting Social Security checks. President Trump even claimed some were 200 years old. Now, besides the fact that Social Security was created ninety years ago, here’s the thing: the Social Security system automatically cuts people off at the age of 110.

If you somehow make it to 110, you have to prove to Social Security that you’re still alive. Imagine that—having to say, “Hey, I’m still here!” I can’t imagine getting in a car at the age of 110 and having to prove I’m alive, but chances are that’s not an issue I will have to deal with.

DOGE and Clawbacks with Social Security Payments

Beyond the issue of cutting off survivor benefits because they claim the person was 100 years old and died five years ago, despite these being survivor benefits, this highlights the mess that the Trump administration is creating. But my bigger concern is the clawback process. This term, commonly used in bankruptcy, refers to the government reclaiming payments it believes were made in error.

For example, if someone passed away in October and continued receiving $1,000 monthly benefits for five months, the government would attempt to claw back $5,000.

The problem arises when they access those funds. If there’s $5,000 in the account, they’ll take it. The solution? Open another bank account. Seriously, that’s the level of distrust we’ve reached, not to mention the incompetence of the federal government and DOGE.

Once the government takes the money, you might eventually get it back, but the process is far from quick, and in the meantime, the bills are due. Good luck. It’s going to take a lot of time, money, and energy to recoup your funds.

So here’s my recommendation: If you have a bank account where your money is deposited, keep in mind that they already have all that information—your routing number, account details, everything.

What you should do is open a separate bank account. Transfer the majority of your money there, leaving only the minimum amount required to keep the original account active. This way, when they try to access your account, most of your money will already be in the other account, safe from any clawbacks.

So please consider that because this is a major disaster, and once the funds are clawed back, it will not be easy to get them back. Protect your money. It’s your money. You worked hard for it.

Updated on May 6, 2025. Under some circumstances, CNBC is reporting that clawbacks may occur at 50% versus 100%.

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