If you get Social Security, a tax refund or another federal payment, the government is checking more details before the money goes out.
The U.S. Treasury Department said on Tuesday, Oct. 6, that it has greatly expanded the tools it uses to stop fraud and mistaken payments before they happen. The announcement covered the federal government's 2026 fiscal year, which ended Sept. 30.
What Treasury announced
According to Treasury's press release:
A new verification process screened more than 1.1 billion federal payments worth about $3.7 trillion.
That screening caught about 13,500 payments worth $175 million that were headed to people who had died.
About 99% of federal programs can now access Treasury's Do Not Pay program, a set of databases agencies check before sending money, up from 4%.
Do Not Pay screened 2.3 billion records, up from 641 million in fiscal year 2025.
Treasury added nine new data sources, including Social Security's Numident records, which are used to verify Social Security numbers.
New checks that confirm bank account ownership and Taxpayer Identification Numbers before money goes out began working on Sept. 30, 2026.
A Taxpayer Identification Number is the number the IRS uses to track you, usually your Social Security number.
"Treasury continues to transform how the federal government protects taxpayer dollars by using better data, stronger controls, and advanced technology to stop fraud and improper payments before money goes out the door," Treasury Secretary Scott Bessent said.
Treasury said it expects to bring the remaining programs into Do Not Pay early in fiscal year 2027, according to PYMNTS.
Why it matters
An improper payment is money the government sends that it shouldn't have, or sends in the wrong amount. Payments to people who have died are one common type. Catching them before they go out is easier than trying to get the money back later.
For most people who receive federal payments, nothing changes in how they apply or get paid. But the new bank account checks are a good reason to make sure your information is accurate.
What this means for your wallet
Keep your direct deposit details current: If you change banks or close an account, update your information with the agency that pays you, such as Social Security, the IRS or the Department of Veterans Affairs, before your next payment is due.
Make sure names match: Treasury now checks bank account ownership before paying. It's a good idea to confirm that the account receiving your payment is in your name.
Report a death promptly: When a loved one who received benefits dies, Social Security should be told quickly. Social Security says a funeral home will usually report the death, but families can confirm it was done. Social Security benefits aren't paid for the month a person dies, so payments received for that month or later generally have to be returned.
Watch for scams: Fraudsters often pretend to be from Treasury, the IRS or Social Security. Government agencies won't demand payment by gift card, wire transfer or cryptocurrency. If you get an unexpected call, hang up and contact the agency using a number from its official website.
What to do if a payment is delayed or rejected
If a bank account check fails, for example because the account isn't in your name or was closed, a payment may be held or returned instead of deposited. If an expected federal payment doesn't arrive, start with the agency that pays you rather than your bank.
- Confirm the payment date. Social Security, the IRS and the VA all publish payment schedules on their official websites.
- Check the account on file. Log in to your my Social Security account, IRS online account or VA.gov profile and confirm the bank, routing number and account holder name.
- Contact the paying agency using a phone number from its official website. Treasury's Bureau of the Fiscal Service sends the money, but the agency that approved your benefit handles questions about it.
- Keep notes on who you spoke with and when, in case you need to follow up.
A checklist for families after a death
Losing a loved one often comes with paperwork. Because benefits aren't payable for the month someone dies, it helps to act quickly. Confirm the death was reported to Social Security, let any other paying agencies know, and don't close the person's bank account until you know whether any payments need to be returned.
Related reading: Social Security basics, what the 3.6% COLA for 2027 means and how to spot and avoid money scams.
Frequently asked questions
What is the Do Not Pay program?
Do Not Pay is a Treasury service that lets federal agencies check databases, such as death records, before sending money. About 99% of federal programs can now use it, up from about 4% at the end of fiscal 2025.
How much did Treasury stop in payments to deceased people?
Treasury says it returned about 13,500 payments worth $175 million that would have gone to deceased people in fiscal 2026.
Do I need to do anything because of the new bank account checks?
Most people don't. It's a good idea to make sure your direct deposit account is current and in your own name, since Treasury now verifies account ownership before paying.
Will Treasury or Social Security ever ask me to pay with a gift card?
No. Government agencies don't demand payment by gift card, wire transfer or cryptocurrency. Hang up and call the agency using a number from its official website.
Sources
Content on The Evergreen Edit is for educational and informational purposes only and is not individualized financial, investment, tax or legal advice. Learn more.
This article is for educational purposes only and isn't personalized financial, tax or legal advice. Consider talking with a qualified professional about your situation.
Kiara Miller — Founder & Editor
Kiara Miller is the founder and editor of The Evergreen Edit. He has been doing independent finance research for two decades and reviews every article before it's published.
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