True. The high-profile cases were essentially SSDI fraud and these folks went to jail (and rightfully so). However, the FAA later did a study in N. CA in ~'07-09 timeframe and pulled medicals/tickets for many, many folks - most were able to just provide additional info and get their medicals back, a few had to fight to get their tickets back. The bottom line is the FAA used this study to make the case to congress to obtain access to the VA & SSA databases which they received in late summer '11 or so.

What they're doing with that access currently is anyone's guess. I'm assuming that right now they're just cross checking it when you tick the box to make sure what you put down jives with what's in your records. However, bureaucracies never shrink, so the ever-present "mission creep" could be interpreted as they will eventually actively cross-check everything. What will they do with that info? Anyone's guess. Maybe nothing....but bureaucracies have to justify personnel and money, so my bet is they'll do something.

I can envision a few worst-case scenarios that would be a nightmare for pilots...