Scammers are constantly evolving their tactics to target seniors, and one of the most common ways they do this is through Social Security fraud. In 2023 alone, over $126 million was lost to Social Security scams according to the Federal Trade Commission. These fraudsters use fear and urgency to trick victims into handing over personal information or money.
Here’s what you need to know to protect yourself and your loved ones.
Related: How to Avoid Scams, Particularly Those Targeting Older Adults
8 Common Social Security Scams
1. Social Security Number Suspension Scam
In this scam, a caller falsely claims that your Social Security number has been suspended due to suspicious activity – such as a crime committed in your name or a breach of your account. The scammer will pressure you to “verify” your SSN or provide other personal information to “reactivate” it. They may threaten arrest or loss of benefits if you don’t comply immediately.
Red Flag: The SSA will never suspend your SSN, nor will they threaten you with legal action over the phone.
Protect Yourself: Hang up immediately and do not share personal details. Report the scam to the Office of the Inspector General at oig.ssa.gov.
2. Bogus Fees and Payments
Scammers may claim there’s a problem with your Social Security account – such as a clerical error or unpaid fee – and demand immediate payment to fix the issue. Often, they insist on being paid through gift cards, cryptocurrency, or wire transfers, which are difficult to trace or recover.
Red Flag: Any request for payment via gift cards or crypto is a scam.
Protect Yourself: The SSA will never demand payment this way. If you receive a suspicious call, don’t send money – contact the SSA directly at 1-800-772-1213 to verify any claims.
3. Fake Benefit Increases
You may receive a phone call, email, or letter promising a higher monthly benefit payment. The catch? You need to provide your full name, SSN, banking details, or even click on a link to a fake SSA website. Once you provide the information, scammers can steal your identity or reroute your benefits.
Red Flag: Offers of increased benefits that require personal info are fake.
Protect Yourself: Changes to benefits are typically initiated by you, and never require confirmation of details via unsolicited calls or emails.
4. Impersonation Scams
In these scams, fraudsters pretend to be SSA officials by spoofing the caller ID to show the Social Security Administration’s name or number. They might use the real names of SSA employees or send forged documents that look official. Their goal is to earn your trust – and your information.
Red Flag: Caller ID is not a reliable way to verify a caller’s identity.
Protect Yourself: Always verify any unexpected contact by calling the SSA directly. Official SSA communication is usually initiated by mail.
5. Overpayment Scams
This con involves a scammer claiming the SSA has overpaid you and now you must return the excess funds. They may provide a convincing backstory and insist on quick repayment via untraceable methods. Once you send the money, it’s gone.
Red Flag: You’re asked to repay funds using gift cards or by wiring money.
Protect Yourself: If the SSA ever does overpay, they’ll notify you by mail and explain the process for repayment – never over the phone or via text.
Related: What To Do If You Receive a Social Security Overpayment Notice
6. In-Person Payment Scam
This newer tactic involves a scammer pretending to be an SSA agent and requesting to meet with you in person to collect a payment. They may wear a fake badge or show bogus credentials to appear legitimate. Their goal is either to receive payment or gain access to your personal information or home.
Red Flag: The SSA never sends agents to your home to collect payment or personal data.
Protect Yourself: Never allow unverified individuals into your home. Call the SSA or local law enforcement if someone claiming to be an SSA agent shows up at your door.
7. Information Verification Scam
You receive a communication – often via phone call, text, or email – asking you to “confirm” or “verify” personal information such as your SSN, address, or bank account to prevent your benefits from being stopped. The sense of urgency is designed to prompt you to act without thinking.
Red Flag: Any message asking you to “confirm” personal data to avoid losing benefits is a scam.
Protect Yourself: The SSA doesn’t call or email out of the blue for information. Don’t click links or reply to suspicious messages. When in doubt, contact SSA directly.
8. Tax Refund Scam
In this scam, fraudsters pose as tax preparers or financial advisors, offering to file your tax return using your Social Security benefits. In reality, they file fraudulent tax returns in your name, often claiming phony credits or deductions. They may charge you upfront or take a portion of the refund – which is often stolen.
Red Flag: Someone offers an unusually large refund or asks for access to your Social Security account to file taxes.
Protect Yourself: Only work with licensed, reputable tax preparers. The IRS has a directory of qualified professionals at irs.gov.
Social Security scams continue to evolve, but awareness is your best defense. Educate yourself and your loved ones about the signs of fraud. If you suspect you’ve been targeted, report it to the Social Security Administration’s Office of the Inspector General and to the Federal Trade Commission.
Taking the time to verify suspicious contacts and protecting your personal information can go a long way in keeping your identity and finances safe.
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Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.