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Turns out, with taxes, that may be true, but not so much with death. In america, the job of ultimately accounting for who is Social Security administration, which compiles something called the death master file. There are about 86 million names on this National List of the deceased. And its deadly Serious Business because when youre added to the file, that means that banks, the i. R. S. , medicare, Law Enforcement and the like scratch you out of existence. But we found out that the death master file is often fatally flawed. As we first reported last march, a lot of people who pass on dont get on the list, which costs taxpayers billions of dollars in fraudulent payments to people standing in for the departed. And then, there are those who are on the death master file who are very surprised to hear that theyre dead. How many of you have been declared dead by the federal government . All of you. Youre looking pretty well to me. These are living, breathing americans that we conjured up from around the country, all declared dead by the Social Security administration. Don pilger passed away when he tried to report the death of his wife. This is a form from the Social Security administration. The idea was you were going to call this number and essentially report that your wife had passed. Don pilger exactly. And thats what i did on the following monday. Eight days later, i went to access my bank account and it was. They kept saying, invalid pin. So i went to the bank and i give the lady the problem i was having. She typed my numbers into the computer and she grabbed my hand, she says, mr. Pilger, i dont believe this. They reported you deceased and not your wife. Pelley kristina paces life was cut short at an early age. Kristina pace i was in college, i walked into the bank to open up an account, and same we cant help you. Well, why . Youre coming up as deceased. You need to go to Social Security office. And i did. But just randomly, years later, it would come up. Id want to get a car or something. Oh, no. Oh, let me guess. Im dead . So. Pelley Betty Denault was summoned to her Social Security office where the computer read like an epitaph. Betty denault and she pointed on the screen up in the corner and it said, d. O. D. And i said, what does d. O. D. Mean . And she said, date of death. And i said, well, how did you come up with this . And she said, all it takes is somebody to input on the computer the wrong numbers. And it just makes a big difference, of course. Pelley most people never find out how it happens, but when the federal computer says youre dead, you might as well be. The terrible news is relayed by the government to banks and credit agencies. Judy rivers told us she had when she tried to use a bank card at a store, they assumed she was an identity thief. You couldnt get access to your bank accounts. You couldnt get a credit card. How did you live . Judy rivers well, for a time, i lived in my car. And i couldnt get an apartment. I had my debit cards, which were, of course, no good. I used one without knowing the consequences, and was actually taken to jail and questioned because they thought i was an identity thief. Pelley you ended up arrested . Ended up living in your car because of all of this. Rivers for six months. Pelley you had been eliminated from the human race. Rivers cyber ghost. Pelley cyber ghost. Pilger cyber ghost. Pelley judy rivers now haunts a borrowed camper in alabama, and while her finances were ruined, she found that the government makes a tidy profit credit agencies. So, word of her death was nearly immortal in dozens of databases, and it came back again and again. She protested to a Credit Agency called chexsystems for what seemed like an eternity. Rivers finally, chexsystems responded to me and told me to send my information in and they would consider it, after i had sent it to them over 20 times. Pelley they would consider whether you were still alive. Rivers correct. Pelley we looked in the Alabama Vital Records Office for rivers death notice, but its not there. No one seems to know how she got in the federal death master file. God may judge the quick and the dead, but its the states that collect the data. They pass it along to Social Security, and there is plenty of room for error. Record bureaus get death notices from doctors, hospitals, funeral homes, or families, and every perhaps because the dead dont vote, many of the states dont spend much keeping tabs on them. This is the state of alabama vital records vault. It is a place so secure that you need a key and a fingerprint to get inside. But once in here, the Technology Becomes pretty 19th century. These are death certificates from 1912, for example. All in all, there are 17 million paper records in here. Now, the state of alabama is moving toward an electronic system, and its about 60 of the way there. But theres so little funding around the country for that kind of transition that there are about a dozen states in america that do not have a statewide Electronic Filing system for death records. How accurate is the death master file . Patrick ocarroll i guess, the best way to say it is as accurate as it can be. Pelley Patrick Ocarroll is the Social Security administrations inspector his Office Investigates how the death master file is used and abused. Ocarroll right now, the death master file has in it about 86 million records in it, and it gets about two million records every year from the states. And were probably, as with everything else, as strong as the weakest link, in terms that some states are reporting electronically, have very good data. And then with other states, its done on a more haphazard level. So again, theres going to be 9some falling through the cracks there. Pelley but ocarroll told us that live people falling through the cracks isnt what keeps him up at night. The much more costly problem is in the millions of americans who do die and are not recorded. Your office found that Social Security had no death data for six and a half Million People over the age of 111. Do you really believe that there are six and a half Million People over the age of 111 in this country . Thats why we did the audit on it. People that were over 112 years accounts, and it got us suspicious. And we found that 6. 5 million was not recorded as being deceased in ssas records. Pelley how many people are over the age of 111 in this country . Ocarroll im thinking ten. Pelley most federal agencies depend on the death master file, so if a death isnt listed, federal payments just keep coming. We wondered what that would add up to during the course of a year, but it turns out, no one in the federal government is keeping an overall count. The best we could come up with was a few reports from individual agencies. For example, the department of agriculture paid farm subsidies and Disaster Assistance to more than 170,000 dead people over six years. That came to 1. 1 billion. The office of Personnel Management paid dead federal retirees a little over a and in 2010 alone, the i. R. S. Paid more than 400 million in refunds to the dead. Social security doesnt know how many retirement and disability checks are cashed by the relatives of the dead, like Sandra Kimbro. Sandra kimbro im a. A wife, a mother, a grandmother, and now a felon. Pelley like a lot of people, she took in her aging, ill mother, and had a joint bank account with her. When her mother died, the disability benefits kept coming. When did she die . Kimbro she died. 1984. Pelley when she died, did you report her death to Social Security . Kimbro i did not. Pelley why not . Kimbro i thought perhaps it would have been taken care of by the funeral director at some point. Pelley were you surprised that these benefits kept coming to you . Kimbro no, not initially, with my mom prior to her death that i would be entitled to the benefits. So i had just assumed and went along with that, thinking that i was entitled. Pelley and what did it come to . Kimbro over a 30year period, 160,000. Pelley though she took the checks for three decades, otherwise, Sandra Kimbro is no ones idea of a thief. She and her husband had good fulltime jobs through retirement, a solid middle class life, and raised two children. But then came an unexpected call from Social Security. The investigator from Social Security mustve asked where your mother was . Kimbro oh, well, i explained to him immediately. I didnt try to say that she was alive. I said that she was deceased. Pelley Social Security suspected as much because it is using a clever new tool. Ocarroll so, we go to medicare and see if anybody hasnt been to medicare for three years. And if they havent been, we then, you know, try to go out and make a phone call to them, here. Also, we look at people that reach 100 years of age, and try to reach out and see if theyre, you know, doing well. Pelley Sandra Kimbros mother would have been 93 and hadnt used medicare in 30 years. Kimbro was charged with theft, pled guilty, and is now looking at at least a year in prison. She spoke with us, she said, to warn others. Kimbro ive spent 66 years, no criminal history. Havent done nothing wrong, lived a good life, did everything i was supposed to do, be lawabiding citizen, and succumbed to this human error. And this is where i am. And obviously, felon is not compatible with the other three things that i said, but it is my reality. Pelley Inspector GeneralPatrick Ocarroll says that Social Security is managing about 150 convictions a year, a fraction of the total. But it adds up to about 55 million in fraud. Ocarroll what were trying is, if you do take it and youre not supposed to do it, were going to find you, were going to arrest you, and were going to get the money back. Pelley over the last decade, ocarroll has made 70 recommendations to Social Security to reform the death master file. But he says theres little sense of urgency. Is part of the problem here that, in washington, 50 million or 100 million a year just isnt a very big number . Ocarroll its interesting you bring that up, because i deal in very big numbers. About 2 billion go out every day. So, when you start taking a look at percentages of 2 billion, thats what to you, me, to a general taxpayer is going to be extremely large amounts of money really, percentagewise, is small compared to whats going out every day. Pelley as for the living whove been declared dead, Social Security told us we work very hard to correct errors when we learn of them. The agency said that its error but that still adds up to about 9,000 americans killed off by the government each year. For them, it can be a long road to resurrection. It took judy rivers five years. And today, she carries a few credit cards, and something else. You carry a letter around with you. Rivers all the time. Pelley . Everywhere you go. What does it say . Rivers its from the Social Security office, and i have it updated once a month. And it says that. Who i am, what my Social Security number is, that i have been mistakenly declared as deceased in the past, and that that is not correct, and im alive and well, or at least alive. Pelley and you have that updated every month . Rivers every month. Pelley why . Rivers because when you get to about three months, people look at the date and say, well, this is old. You know, you couldve died since then. Pelley after we first ron johnson and tom carper introduced a bill to ensure that improper payments to the dead stop, and the living stay off the death master file. The bill passed the committee and is waiting to move to the senate floor. As for Sandra Kimbro, she is a free woman now after serving six months in prison. Shopping for an suv . Well, this is the time. And your ford dealer is the place, thats right. Just announced. Ford explorer. Edge. Escape. And expedition. Are available with 0 financing for 60 months. Ford suvs. Designed to help you be unstoppable. No wonder ford is americas best selling brand. But hurry, 0 financing for 60 months on ford suvs is a limited time offer. See your ford dealer today. The flu virus. Its a really big deal. And with fever, aches, and chills, mom knows it needs a big solution an antiviral. Dont kid around with the flu, call your doctor within the first 48 hours of symptoms and ask about prescription tamiflu. 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Its Finger Lickin good Althea Gibson was the first africanamerican to win a grand slam tennis tournament, not to mention ten more. Leslie stahl most of us take for granted that we can instantly recognize people we know by looking at their faces. Its so automatic, it almost sounds silly to even say it. Friends can put on a hat, cut their hair, and still we know them by their face. And we can do this for thousands upon thousands of faces, without ever giving it a moments thought. But imagine for a second what life would be like if you couldnt if your wife or husband looked like a stranger; you couldnt tell your kids apart; you couldnt recognize yourself in a mirror. As we first reported a few years back, thats what life is like for people who suffer from a mysterious condition called face blindness, or prosopagnosia, that can make it nearly impossible to recognize or identify faces. If youve never heard of face blindness, youre not alone. Chances are your doctor hasnt either. Medical world until recently. Hearing about it can feel a little like entering the twilight zone. But f