I’m 23 and Social Security is saying I owe them $14,000 in ‘overpayments’ — but I’ve never claimed benefits. How did this happen and what do I do now?

Social Security is a safety net for many, but it can also be misused — and when that happens, the Social Security Administration can require you to repay benefits. But what happens if you never applied for benefits, but SSA claims you owe for overpaid benefits anyway?

Imagine you’re 23 and recently created a My Social Security account to request a replacement card for one you lost. When scrolling through your account dashboard, you see that SSA is claiming you owe them $14,000 for overpayments. The kicker, you’ve never filed for unemployment or disability benefits — and you’ve never received a Social Security payment.

So, how does something like this happen? And more importantly, how can you fix it?

How could you owe Social Security if you've never applied

There are a few possible explanations, but they generally fall into three categories.

1. Identity theft

This is one of the most common culprits. Someone may have used your Social Security number to fraudulently claim benefits, possibly years ago, and without your knowledge. Identity thieves can use stolen SSNs to apply for government benefits, open bank accounts or even file taxes. If your information was exposed in a data breach, it could’ve ended up in the wrong hands.

2. Childhood benefits

It’s possible that a parent or guardian applied for disability or auxiliary benefits on your behalf when you were a child — legitimately or not. If those payments were later deemed improper or excessive, the SSA could now be seeking repayment in your name. Generally, children can receive benefits if a parent dies, the child has a disability or if a parent has a disability.

3. SSA error

The administration occasionally makes mistakes. According to AARP, the SSA improperly paid more than $70 billion in benefits between 2015 and 2022, often due to agency errors or failure to update income information. When correcting those errors, sometimes the wrong person is flagged or incorrect payment records are assigned to the wrong account.

What to do if Social Security says you owe money but you never received payments

It can be a big shock to see a bill for $14,000, especially when you're a young adult just starting to get your financial life in order. The first step is to take a deep breath — you haven't done anything wrong, and this can be fixed. Here's how:

• Contact the Social Security Administration by calling 1-800-772-1213 or visiting your local SSA office and ask for a detailed explanation of the overpayment. Request a written notice that shows when the payments were made, to whom, and why repayment is now being requested.

• Talk to your parents or guardian and ask if any payments were applied for under your name during your childhood. They may be able to explain where the debt came from. If your parents have passed away or are not trustworthy, you may have to skip this step.

• Lock your credit immediately if you suspect identity theft. You can do that at the three major credit bureaus (Equifax, Experian and TransUnion) and request a free credit report from AnnualCreditReport.com, a federally authorized credit report tool.

• Report it. If you are unable to confirm the debt is legitimate or a mistake by SSA, file an identity theft report with the Federal Trade Commission at IdentityTheft.gov and report the fraud to the SSA Office of the Inspector General.

• File an appeal or waiver request if you believe the debit is a mistake. You can file an appeal or request a waiver using Form SSA-632BK.

• Consider getting legal help. If you are unable to resolve the issue with the steps above, consult with an attorney who specializes in Social Security law.

Once the issue is resolved, be sure to review your SSA account regularly and monitor your credit reports closely. This can help prevent future problems and help protect you from additional identity theft.

While finding yourself in this situation can be unsettling, it's not uncommon. The key is to act quickly and advocate for yourself and your financial future.