In a landmark move, President Donald Trump has ordered the end of paper Social Security checks by September 30, requiring more than half a million beneficiaries to switch to digital payment methods.
Trump's Executive Order Forces Social Security Into Digital Payments
The change comes through an executive order signed on March 25 titled "Modernizing Payments To and From America's Bank Account." The Social Security Administration (SSA) says the shift affects roughly 0.8% of recipients who still receive paper checks, as reported by The Motley Fool.
Paper checks are costly, slower, and far more likely to be lost or stolen than electronic payments, according to the SSA spokesperson.
Transitioning to digital payments ensures benefits reach recipients safely and efficiently. Recipients must now set up direct deposit with a bank or credit union or use a Direct Express prepaid debit card to continue receiving benefits.
Trump Administration Tightens SSA Security And Cuts Costs
The administration has also overseen additional Social Security adjustments, including downsizing the SSA workforce by 7,000 employees, closing certain offices, and tightening security protocols for changing direct deposit information.
Frank Bisignano, former fintech CEO, was confirmed as SSA commissioner and is leading the agency's shift toward digital payments.
Additionally, the overpayment recovery rate has been raised to 50%, a significant increase from the 10% rate under the Biden administration, though still lower than previous administrations' rates.
Social Security Whistleblower Resigns Over Data Security Concerns Under Trump-Era Modernization
Last week, Charles Borges, the Social Security Administration's chief data officer, resigned after filing a whistleblower complaint over security risks linked to Trump-era efforts to modernize SSA's data systems.
In his resignation letter to Commissioner Frank Bisignano, Borges said he felt forced to step down due to "SSA's actions against me, which made my duties impossible to perform legally and ethically." He described a hostile work environment marked by isolation, retaliation, and a "culture of panic and dread."
Borges alleged that employees with the Department of Government Efficiency (DOGE) had uploaded a copy of the nation's Social Security data to a vulnerable cloud environment, and his repeated requests for clarity were ignored or rebuffed.
His attorney, Andrea Meza, said Borges could no longer work for SSA in good conscience and would continue cooperating with oversight bodies.
The controversy followed the Supreme Court's decision in June that allowed DOGE, formerly overseen by Elon Musk, to access SSA data, overturning a lower court injunction.
The agency, backed by the Trump administration, argued that the move was necessary to identify fraud among outdated beneficiary records, while critics, including Senate Democrats, questioned DOGE's methods and called for audits of its access to sensitive data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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