Elon Musk’s access to Treasury’s payment system raises alarms. Here’s what to know.

With Elon Musk’s Department of Government Efficiency (DOGE) To get control Of the Ministry of Finance’s payment system, consumers’ advocates and democratic legislators are raising the group’s access to the federal government’s financial tapping, as well as sensitive data, such as the social security numbers for most taxpayers.

DOGE, a Trump administration task force assigned to find ways to reduce federal expenses, now has access to a Treasury unit called Bureau of the Fiscal Service, which pays trillion of payments each year, including social security control and federal wages, according to Associated Press.

Musk’s access to the payment system raises concerns as it comes just days after the White House ordered a wide freezing On federal grants and loans that cause confusion in federal aid programs, to non -profit organizations and among Americans receiving state aid. Same day, State Medicaid programs said they were locked out by the Department of Health and Human Services system used to track and pay money.

What are the worries?

While the White House later lifted the note and a judge stopped Freeze, Doge’s control over the Treasury’s payment system raises questions about the Trump administration’s ability to stop the flow of federal funds for programs, including Medicare and Social Security. It also causes concern about Doges access to the personal and financial information for most taxpayers.

“There is no society of Americans that this system is not touching, and therefore I think the concern is that access to this system, including personally identifiable information director and chief lawyer for Watchdog Group Citizens for Responsibility and Ethics in Washington told CBS Moneywatch.

There are “quite real risks” that DOGE “can potentially undermine this system and threaten millions of Americans from getting payments they are due,” he added.

Musk’s access to the Ministry of Finance’s payment system has given rise to concern from democratic lawmakers, including senators Elizabeth Warren and Ron Wyden, while one lawsuit Was filed on Monday with a claim for “illegal ongoing, systematic and continuous disclosure of personal and financial information” to Musk and DOGE. The lawsuit filed by two unions and the alliance of retired Americans names the US Ministry of Finance Secretary Scott Bessent and the Treasury as defendant.

“Management of the system could allow Trump administration to ‘unilaterally’ – and illegally – cut off payments for millions of Americans, postpone the financial security of families and businesses based on political favorite or incorporated by Mr. Musk and those on his team, Work has worked inside, ”said Senator Elizabeth Warren, a Democrat from Massachusetts, in a February 2nd letter to Bessent.

She added, “It could also give them access to millions of Americans’ personal and financial information protected by the law.”

The Treasury Department did not immediately respond to a request for comment.

Here’s what to know about Bureau of the Fiscal Service.

What is Bureau of the Fiscal Service?

The treasury has long been the federal government’s checkbook, which is tasked with handling payments for individual agencies based on funds allocated by Congress. Its systems control power over $ 6 trillion in payments to US families, businesses and other recipients each year.

The Treasury Department’s Bureau of the Fiscal Service handles most of these payments. About 90 cents of every $ 1 in federal payments are sent through the slightly well -known department.

In the financial year 2023, the unit paid out almost 1.3 billion payments totaling $ 5.4 trillion, according to to Agency. Almost 97% of the payments were made electronically and everyone was made on time, it noted.

How did Doge get control of the payment system?

The executive order signed by President Trump that Created DODE Reigned all agencies to make sure it was given “full and quick access to all unclassified agency registers, software systems and IT systems.” DOGE itself is not a federal department.

Musk, billionaire’s CEO of Tesla, gained control of the system following the Ministry of Finance’s acting deputy secretary, David Lebrik, withdrew from his position after more than 30 years of service. LEABLE stepped down after Musk and his DODE organization requested access to sensitive Treasury data, Washington Post had reported.

On Sunday, Musk indicated This DOGE had stopped payments from the US Ministry of Health and Human Services to Lutheran Family Services, a tro -based charity that had offered social services to refugees.

Could this affect social security?

Legislators and consumer lawyers raise concerns about the potential influence on government programs, including social security, although neither Musk nor Trump have marked social security as a measure of cuts.

In fact, Mr. Trump said he will preserve social security and while on the campaign track he promised to Remove taxes About social security income. But because Bureau of the Fiscal Services sends monthly checks to more than 70 million social security recipients, some advocates say they are concerned.

Musk and DOGE “now has access to the personal information for any social security recipient – and the ability to stop payments for all federal programs they do not like,” said Max Richtman, CEO of the National Committee to preserve Social Security and Medicare, a Attorney group for the programs, in an E email. “Seniors, their families and people with disabilities certainly cannot trust Trump and Musk with their decisive federal benefits – or their personal data.”

Senator Ron Wyden, the top Democrat of the Senate Finance Committee, said in a letter 31 January to Bessent that he is concerned that Social Security Control could be affected, “whether intentional or unintentional.”

“It seems that Musk’s behavior is forcing highly qualified and experienced career employees to get their way and meet Trump’s goal of expeling the federal budget, including potentially cutting social security and medicare benefits for millions of Americans already fighting to pay their bills or buy groceries, ”he wrote.

Does Musk have access to taxpayers’ personal data?

Legislators and consumer lawyers also raise concerns about Dog’s access to personal data for millions of US taxpayers. Because Bureau of the Fiscal Service distributes tax refuses and social security payments, it has access to the recipients of personal safety numbers and bank accounts.

Kate Miller, who earns in an advisory board of Director, did not respond to requests for comment but did Repost an associated press article about x With the comment, “No classified material was accessed without appropriate safety preparations.”

Access to this personal information may pose the risks of taxpayers, according to data security experts.

“Traditionally, access to this information has been very limited, and among the most secure information has the US government,” said James E. Lee, president of the Identity Theft Resource Center, in an E email to CBS Moneywatch.

He added, “This is the kind of information that, if it found its way into the hands of a bad actor, could lead to a wide range of identity crimes – imitation to open new accounts or access existing, theft of the funds in an existing Bank account that applies for new state or federal government services and submits false tax returns among other forms of identity fraud.

The data is also sensitive because they can be useful for intelligence agencies in other nations, including the personal data of government employees or ties that companies have with the US government noted Lee.

This concern was repeated by Senator Wyden, who in the 31st of January letter to Bessent questioned by giving access to sensitive information to Musk due to significant business interests in China and noted that Tesla is operating its largest factory in China. Musk did not respond to a request for comment.

Associated Press

contributed to this report.