The Social Security Administration (SSA) made nearly $72 billion worth of improper payments over a period of seven years, with almost one-third yet to be recouped, according to the SSA's Office of the Inspector General (OIG).

"SSA issues over $1 trillion in benefit payments annually. Even the slightest error in the overall payment process can result in billions of dollars in improper payments," the OIG said in an Aug. 19 statement, citing an analysis published in July. Improper payments can be either overpayments or underpayments.

"From fiscal years 2015 through 2022, SSA paid almost $8.6 trillion in benefits and made approximately $71.8 billion (0.84 percent) in improper payments, most of which were overpayments," the OIG stated.

The agency still had a $23 billion uncollected overpayment balance at the end of fiscal year 2023. The report cited improper payments as a "longstanding challenge" for the SSA. The agency has taken actions to remedy the situation, according to the OIG.

For instance, the SSA is developing an information exchange to access wage data from payroll data processors to reduce payment errors. And in October 2023, the agency initiated a review of its overpayment procedures, systems, and communications to identify areas in which improvements can be made.

It's crucial for the SSA to find ways to prevent improper payments before they occur to reduce the administrative and productivity costs incurred to correct these errors, according to the OIG.

"There is more it needs to do," the report states.

Improper payments not only create additional work for SSA employees but also impose burdens on beneficiaries who receive such payments, the watchdog noted.