Controls over OASDI Replacement Checks for Beneficiaries Who Double Negotiated Benefit Checks

Wednesday, July 18, 2012
Report Number: 
Report Type: 
Audit Report
Office Affiliation: 

When an individual reports he or she did not receive his or her OASDI check, SSA can issue a courtesy replacement check before the Treasury determines the status of the original check. A double check negotiation (DCN) occurs when an individual cashes the original and replacement checks for the same benefit month--and the individual's signature was not forged on the check--which results in an overpayment.

We found SSA has taken actions to decrease the number of DCNs. For example, in Fiscal Year 2012, SSA implemented a system enhancement that automatically places a stop payment on a replacement check when Treasury reports to SSA an individual cashes an original check. Read the full report below for more information.