Taking losses on reclamations -- what can we do?

I am struggling with how I am to be handling reclamations on accounts for deceased individuals. I think I understand the Treasury's requirements, and our liability; however, I am experiencing instances where the money is gone as it was withdrawn from an unknown source which causes the account to be forced overdrawn to allow us to return the money to Social Security. On occasion I am able to pull surveillance and have actually filed two police reports on those individuals. Both times I am told that because there was no "malicious intent" to defraud the bank no charges would be filed. Should I just be taking these as fraud losses and not pursue? I certainly don’t like the idea of having to take them as a fraud loss and not being able to recover the funds. Does anyone have any suggestions on other recourse available to us?

Speak with your attorney. You may be able to take civil action.

You could also file a creditor's claim against the estate.