The Social Security Administration (SSA) has issued a warning to Americans about scams that steal benefits from thousands of people every year.
As part of the Annual ‘Slam the Scam’ Day, held on March 7, the SSA warned that criminals are using “sophisticated tactics” to trick beneficiaries into disclosing personal information that could put their government benefits at risk of being stolen.
According to the SSA’s Office of the Inspector General, there was a 61.7% increase in reported fraud between the third quarter of fiscal year 2022 and the same period in 2023. In the first, just over 13,000 frauds were reported, increasing to 21,080 in the latter.
The SSA explained in a statement that scammers employ a variety of tactics known as the five P’s: “Pretend, Prize or Problem, Pressure, and Payment.” Common scams involve a fraudster claiming that a person’s Social Security number or benefits are suspended and that they need their personal information to reactivate or reissue them, being told they need to pay to access their benefits or that someone owes money to the SSA and needs to pay immediately.
“Other common tactics include citing ‘badge numbers,’ using fraudulent Social Security letterhead, and creating fake social media pages to target individuals for payment or personal information,” the SSA explained in the statement.
The SSA also clarified that it will never do the following:
• inform you that your Social Security number is suspended,
• contact you to demand immediate payment,
• threaten you with arrest,
• ask for your credit or debit card numbers over the phone,
• request money,
• promise Social Security approval or benefit increase in exchange for information or money.
In recent years, scams involving coronavirus-related issues have also emerged. According to the SSA, these involve the impostor mentioning things like economic stimulus payments.
Frauds have been successful across all age groups, but those targeting older generations are typically more profitable for criminals. According to the SSA’s quarterly fraud report, individuals aged 70 to 84 lost the highest average amount in the third quarter of 2023 – $14,459. In comparison, those aged 29 or younger had an average stolen amount of $3,809.
During the same period, individuals under 50 were more likely to fall for scams, with 816 individuals being victims of fraudulent tactics, compared to 741 people over 50.
“As public servants, we must use all the tools at our disposal to raise awareness and protect the American people against Social Security impostor scams,” said Martin O’Malley, SSA Commissioner. “Scammers use fear and lies to take essential benefits from people. We urge everyone to protect their personal information, stay vigilant, not give money, and report any fraud attempts to oig.ssa.gov.”
Source: Newsweek