The U.S. Treasury Department has identified nearly $99 million in federal payments connected to deceased recipients after launching a new verification process designed to detect improper transfers before funds are released.
The review examined hundreds of millions of payments across the federal system and returned thousands of flagged transactions to government agencies for additional review. The move represents a broader effort by officials to strengthen payment controls and reduce fraud risks involving taxpayer money.
New Verification Process Screens $2.77 Trillion In Federal Payments
According to information reported by KOMO News, the Treasury Department screened more than 885 million payments with a combined value of approximately $2.77 trillion as part of its expanded payment verification efforts.
The process identified more than 4,900 payments worth about $99 million that were intended for individuals listed as deceased recipients. Rather than allowing those payments to proceed, Treasury returned the transactions to the federal agencies that originally issued them for further examination.
The flagged payments were detected through expanded capabilities within the Do Not Pay program, a federal system designed to help agencies prevent improper payments by checking recipient information against government databases.
The initiative focuses on identifying potential problems before money leaves the Treasury system, including payments involving individuals who are no longer eligible to receive government funds.
The discovery highlights the challenge federal agencies face in managing large-scale payment networks where billions of dollars move through government programs every year. Automated verification tools are increasingly being used to detect errors and prevent funds from being distributed incorrectly.
Treasury Cites Fraud Prevention Efforts Under New Federal Safeguards
Treasury Secretary Scott Bessent said the new verification measures are part of an effort to improve accountability within the federal payment system.
“Treasury has delivered on a key promise of President Trump’s mandate to stop improper payments and fraud before money leaves the Treasury, and strengthen the integrity of the federal payment system,” Treasury Secretary Scott Bessent said in a statement.
“Together with Vice President Vance’s Task Force to Eliminate Fraud, this new safeguard addresses a longstanding vulnerability and helps ensure every dollar the federal government spends reaches its intended recipient. Treasury will continue efforts to modernize the federal payment system, strengthen safeguards against fraud and improper payments, and protect taxpayer dollars.”
The department said the expanded verification process builds on existing fraud prevention programs and provides agencies with additional tools to check payment eligibility before funds are transferred.
The announcement comes as federal officials continue examining ways to reduce improper payments, which have remained a persistent concern across multiple government programs.
Law Expands Treasury Access To Death Records Database
The expanded verification system follows changes made through the Ending Improper Payments to Deceased People Act, which was signed into law in February.
The legislation provides the Treasury Department with permanent access to the Social Security Administration’s Full Death Master File, allowing officials to continue using death records to verify payment recipients.
Before the law change, Treasury access to the database operated through a limited three-year pilot program created under the Consolidated Appropriations Act of 2021.
During the first year of that pilot initiative, Treasury projected an estimated $330 million in net benefits between 2024 and 2026 through reductions in improper payments.
The permanent access granted under the new law allows the department to maintain a continuous verification process instead of relying on temporary authorization.
Officials say the goal is to create a more reliable payment infrastructure where agencies can identify questionable transactions earlier and reduce the possibility of government funds reaching incorrect recipients.
Federal Agencies Review Flagged Payments Before Any Funds Are Released
The Treasury findings do not mean that every flagged payment was fraudulent. The identified transactions were returned to originating agencies, which will determine whether payments were issued incorrectly or require further action.
The verification process is designed as a prevention mechanism, allowing agencies to investigate potential issues before money is transferred.
Government payment systems must process enormous volumes of transactions every year, making automated screening tools a central part of efforts to improve accuracy.
The latest review shows how data matching and identity verification are becoming increasingly important components of federal financial management.
Treasury officials have indicated that additional modernization efforts will continue as agencies seek new ways to protect public funds while maintaining efficient payment operations.
The department’s latest action marks another step in the ongoing effort to reduce improper payments and strengthen controls across the federal government’s financial network.
