4 Scams That Target Social Security Benefits (and How To Protect Yourself)

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Scammers are so common nowadays that it can be difficult to determine which calls are legitimate. Robocalls have become the norm, and can make it difficult to know when you should pick up the phone, especially when you receive a call from an unknown number. Among them, some of the most common scam calls related to the Social Security Administration, or SSA, and receiving Social Security benefits.

Whether it’s trolls phishing for your personal bank account information or fraudsters trying to gain access to your government benefits, there are ways you can prevent identity theft before it happens. Here are four of the most common Social Security scams to be aware of and some tips for protecting yourself from fraud.

Scam 1: You Owe Money That Is Due Immediately

Before you search high and low for your Social Security card and start cutting checks for this scam, here is everything you need to know about how this scam is prompted: 

• Prompt: The scammer tells you that you owe money for some sort of penalty or benefit overpayment correction. This is usually followed by a threat to suspend your benefits or have you arrested if you don’t pay the amount in question immediately. Sometimes, unusual payment methods are requested.
• Why It’s Bogus: The SSA office never accepts payment via wire transfers, gift cards, cryptocurrency, prepaid debit cards or mailing cash. These are the preferred payment methods of scammers, as they are virtually impossible to trace.

Scam 2: Your Social Security Benefits Are Suspended

Unfortunately, senior citizens are the biggest targets for these types of scams. Since these are the people who are of age to collect Social Security benefits and often depend on these payments, scammers take advantage of the situation. How this scam works: 

• Prompt: Scammer tells you that your Social Security benefits are suspended. Then, they ask you to provide your full Social Security number to “verify your identity” or ask you to pay some sort of fee to have your benefits reinstated.
• Why It’s Bogus: Social Security employees do not call and ask for your Social Security number or charge you to correct your benefits. In this case, either scenario would be fraudulent.

Scam 3: Your Social Security Number Is Suspended

It was recently reported by The Administration for Community Living, a division of the U.S. Department of Health and Human Services, that claims of scams targeting older adults were multiplying.

“Because Social Security is a significant income stream for older adults, they are often more likely to answer calls or respond to letters out of fear of missing something important. They have more assets, so it’s just a better use of scammers’ time to exploit older people,” said Stacey Wood, the Molly Mason Jones Chair in Psychology at Scripps College. 

Here’s a closer look at the scam:

• Prompt: Scammers tell you that your Social Security number is now suspended and that your personal information is required to reactivate it.
• Why It’s Bogus: The SSA never suspends people’s Social Security numbers. Scammers are only asking you for it over the phone so they can steal your identity and benefits.

Scam 4: You Can Pay To Increase Your Social Security Benefits

Be very wary of someone trying to tell you to pay for any boost in your Social Security amount. If you are approached with the following prompts, steer clear: 

• Prompt: Scammer tells you that you can have your Social Security benefit payments increased for an upfront fee.
• Why It’s Bogus: This scam is often associated with the SSA’s annual cost-of-living adjustment (COLA). If someone calls you to apply for the COLA on your behalf for a fee, they’re attempting to scam you. The SSA is the sole entity to apply COLA adjustments.

Red Flags and Tips To Protect Benefits

Here are some red flags that could indicate you’re being scammed:

• Payment is required to “correct” benefits: The SSA does not charge fees to correct benefits.
• There’s a problem with your benefits: If there’s a problem with your benefits, the SSA will send you a letter.
• You have to respond immediately: The reality is that the SSA allows time for you to pay any sort of fees or penalties associated with your benefits. You won’t be taken to court or sent to jail if you delay legitimate fee or penalty payments.
• Unexpected calls from the Social Security Administration: In most cases, the SSA will contact you via mail, not a phone call.

Here are some tips to help protect yourself from Social Security scams:

• Check your credit history: Any unusual changes or flags on your credit report could indicate trouble with Social Security fraud. You can check your credit report using online tools such as TransUnion, Equifax or Experian.
• Recognize what personal information you have online: If you have an online presence, it isn’t difficult for a scammer to learn more information about you before calling to scam you.
• Promptly inquire about unexpected changes to your benefits: If you see a sudden and unexpected change in your monthly Social Security benefit, be sure to contact the government agency immediately.
• Don’t give out sensitive personal information: If you’re unsure who you’re speaking to, never give out sensitive information over the phone. The SSA will not ask for sensitive information that it already has about you.

Final Take To GO

The bottom line is that with expenses on the rise and stubborn inflation here to stay for the foreseeable future, it’s of paramount importance to protect yourself from scams. Senior citizens tend to be some of the most vulnerable targets since many are living on a fixed income. 

Fear of losing or jeopardizing their Social Security benefits is often what prompts them to fall for scams like these. If you or someone you know is a Social Security recipient, be sure to consider and share these common Social Security scam tactics, red flags and tips. You’ve worked hard for your benefits, and it’s a good idea to protect them.

Caitlyn Moorhead contributed to the reporting for this article.

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