How The Scam Works
Medicare and Social Security beneficiaries across the country report receiving calls from scam operators , who claim to represent Medicare, Social Security, or an insurance company. These callers claim that new Medicare, Social Security, or supplemental insurance benefits cards are being issued or that the beneficiaryâs file must be updated. The scam artist asks the citizen to verify or provide their personal banking information, which is then used to commit theft.
The caller may be extremely aggressive, calling over and over, and at all times of the day, in an attempt to wear down the potential victim. These criminals will say anything to try to gain a personâs trust. In some cases, the criminals may have already obtained some limited personal information about the citizen, such as his or her name, address, or even Social Security number, which the criminal then uses to try to make the call seem legitimate. In other cases, the callers may claim that they can improve the benefits. Do not believe these claims, and do not carry on a conversation with the caller. Instead, if you receive a call asking you to disclose your bank account or other financial information, hang up immediately. These are criminals, and by speaking with the callers, even to ask them to stop calling, they may be encouraged to continue calling your telephone number.
Centers for Medicare and Medicaid Services7500 Security Boulevard
Whos Receiving These Calls
This year, weve seen more scam calls than we can count, and consumers are starting to lose count as well. According to the survey, 53% of people reported receiving more scam calls in 2022 than in 2021.
But whos really falling for these phone scams?
Theres a stigma around older generations, suggesting they fall for scams more easily. But according to our survey, we found thats not always the case. In fact, 2 in 3 of 18-34-year-olds reported having experienced a financial loss due to a scam call, while less than half of those over 55 years old report the same.
Either way you look at it, it seems that the younger you are, the more likely you are to be scammed.
In 2020 Victims Were Swindled Out Of Nearly $45 Million In Social Security
This is the story of how my sister nearly fell for a Social Security scam. Her panicked call to me as she was on the line with a criminal trying to steal her money illustrates just how people fall for this type of fraud.
No doubt youve received a similar call, either from an individual or a recorded voice, claiming your Social Security number has been compromised because of criminal activity. You are told unless you respond immediately usually by sending money, buying gift cards or revealing bank account details youll be arrested or your Social Security number will be suspended.
Its a lie, but one that is so believable, last year victims were swindled out of nearly $45 million, with an average individual loss of $5,800, according to the Office of the Inspector General for the Social Security Administration. More than 700,000 complaints of Social Security-related telephone scams were filed in 2020. A suburban Chicago man pleaded guilty early this year to laundering cash from a scheme that defrauded elderly victims. The scam allegedly conned an elderly Massachusetts woman out of $900,000 that she was urged to transfer from her bank and retirement accounts.
Social Security numbers cant be suspended. No government agency will ask you to pay with gift cards. The feds will never threaten arrest or legal action unless you immediately send cash.
This is what happened to my 62-year-old sister:
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Victims Losing Money Personally Identifiable Information
WASHINGTON The Drug Enforcement Administration is warning the public of a widespread fraud scheme in which telephone scammers impersonate DEA agents in an attempt to extort money or steal personal identifiable information. A new public service announcement aims to raise awareness that DEA will never phone demanding money or asking for personal information.
There are variations in the false narrative, among them, that the targets name was used to rent a vehicle which was stopped at the border and contained a large quantity of drugs. The caller then has the target verify their social security number or tells the target their bank account has been compromised. In some cases, the caller threatens the target with arrest for the fictional drug seizure and instructs the person, over the phone, to send money via gift card or wire transfer to pay a fine or to assist with the investigation or with resetting the bank account. A portion of an actual scam call was captured by DEA and can be heard here.
Employing more sophisticated tactics, Schemers have spoofed legitimate DEA phone numbers to convince their target that the call is legitimate, or texted photos of what appears to be a legitimate law enforcement credential with a photo. The reported scam tactics continually change but often share many of the same characteristics. Callers use fake names and badge numbers as well as names of well-known DEA officials or police officers in local departments. Additionally, they may:
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Asking For Your Social Security Number
If the person claiming to be from the SSA asks you to confirm your Social Security number , its likely a scam, Sherin said. The SSA would never call you to confirm your SSN. That scenario simply isnt real.
Also, SSA doesnt call out of the blue, she said, unless youve already been dealing with them on a personal business matter, such as a benefit claim. In that case, you should have the name of a specific agent and be able to verify that its the same person you spoke with before.
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Robo Calls Seek To Scam Over Social Security
Petersburg residents are reporting scam, robo-phone calls regarding their social security accounts.
This call is from the Social Security administration. We regret to inform you that your social security number ending with has been compromised for some suspicious and fraudulent activities and we have received orders from the state authorities to suspend your social security number on immediate basis.
Thats a message that Petersburg resident John Havrilek found on his answering machine last month. The caller had the correct four digits of his social security number, but Havrilek recognized it as a scam and reported it, rather than returning the call. Hes hoping no one is taken in by it.
Its always upsetting when someone has your personal information and weve heard for several months that these calls have existed but until you actually get it you dont realize how realistic and invasive it is, Havrilek said. So Im not pleased.
The Federal Trade Commission reported this as the top scam reported to that commission in December of 2019. A blog post says the real Social Security Administration will never call to threaten your benefits or tell you to wire money or put money on a gift card. Theres also more information about this scam on the Social Security Administrations web site. Residents should not return unknown calls or should hang up on callers that sound like a scam.
Fraudulent Threatening Phone Calls
Bogus phone calls related to Social Security benefits are among the top scams. The calls often involve peopleor robotic voicespretending to be from the Social Security Administration who try to get your Social Security number or demand money, according to the Federal Trade Commission .
The agency warns that callers sometimes use spoofing techniques to make the genuine Social Security hotline number appear on the recipients caller ID screen. The caller may also identify themselves using the name of an actual SSA official.
The SSA says the language used in these calls has become increasingly threatening in recent years. The caller typically states that due to improper or illegal activity with the persons Social Security number or account, they will be arrested or face other legal action unless they call a particular phone number to address the issue.
The tone of such calls is itself an indicator that they are fraudulent. The SSA does contact some recipients by phone, but theyre almost always people who have current business with the agency. And an SSA employee will never threaten you for information they will not state that you face potential arrest or other legal action if you fail to provide information, the agency says. In cases the call is fraudulent.
Social Security Administration employees will never ask for personal information, such as your Social Security number or date of birth, over the phone or via email.
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Just Hang Up: Social Security Phone Scam Returns In Time For The Holidays
A Social Security phone scam seems to have gotten a second wind, as we head into the holiday season.
As KCAWs Robert Woolsey reports, the latest version of the scam actually includes a threat of arrest if victims dont comply.
UPDATE Friday, November 27, 2020: In a follow-up call, Kirk Larson, a public affairs specialist with the Social Security Administration Seattle region, attributed the uptick in fraudulent robocalls not so much to the holidays, but to the fact that many people are home during the pandemic. And he says the calls are not targeted. They cast a pretty broad net, he said. Theyll make 200 calls and maybe one person will bite. Like the SSA agent in Juneau in the original story below, Larson has also received robocalls at his work number at the SSA office in Portland, Oregon. He says the SSA Office of the Inspector General has a large online library of articles for consumers about how to steer clear of attempted fraud especially fraud related to the pandemic.
ORIGINAL REPORT:
I got the call on my cell phone on November 24. And I wasnt the only one. This is Ashley, an agent at the Juneau office of the Social Security Administration.
We get calls every day, and I get them on my own personal cell phone number, she said.
Thats right. The scammers have attempted to scam the people who work at the agency theyre trying to impersonate.
So far it sounds reasonable enough, but the scammers quickly turn up the heat.
How To Protect Yourself From Social Security Fraud
As with all scams, the best way to avoid becoming a victim is to stay vigilant. If you receive a phone call asking for your Social Security number or other personal information, its best to hang up immediately. You may also want to consider adding the callers phone number to a blocked-call list to help prevent repeated nuisance calls.
Be aware, however, that spoofing allows scammers to use a succession of misleading numbers. So, unfortunately, blocking the first number that called you doesn’t stop further calls from different phone numbers.
Be sure that your information, including your Social Security card, is stored securely. Shred any documents with sensitive information rather than just putting them in the trash. If you access Social Security information online, keep your password to yourself and change it regularly to minimize the likelihood of your account being hacked.
It’s also worth checking your credit reports on a regular basis to make sure no one has compromised your financial information. A paid might also be helpful. Finally, try to keep up to date with the latest Social Security scams. The SSAs Office of the Inspector General monitors these and issues warnings as new schemes arise.
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How To Report Social Security Scams
If you suspect that youve been a victim of a Social Security scam or wish to report any attempts, you can call the Office of the Inspector General hotline from 10 a.m. to 4 p.m. ET, Monday through Friday, excluding Federal holidays. You can also submit a fraud report through the OIG website. In addition, filing a complaint through the Federal Trade Commissions website is also an option.
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Average Retirement Savings By Age
Speaking numbers, an official Government Accountability Office report dated a couple of years back determined that the average household for seniors aged between 55-64 has a median retirement savings of $104,000.
On the other hand, those who are aged between 65-74 have a median savings of $148,000. It is suggested that you only draw 4% of your savings each month to ensure you have enough in your retirement for the rest of your life. So typically, on average, seniors only withdraw around $500 a month. So needless to say, they value every single dollar they receive.
As far as receiving social security retirement benefits, a senior will typically average about $1,360 per month. Most people that retire become very dependent on their monthly social security check. If you check the reports from the Social Security Administration, you will see that the majority of elderly beneficiaries will receive more than 50% of their income from their monthly social security check. Millions of people even get 90% or more of the social security check revenue, so this is a minimal income.
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Scams Targeting Tax Professionals
Increasingly, tax professionals are being targeted by identity thieves. These criminals many of them sophisticated, organized syndicates – are redoubling their efforts to gather personal data to file fraudulent federal and state income tax returns. The Security Summit has a campaign aimed at tax professionals: Protect Your Clients Protect Yourself.
Schemes
Phishing is a scam where fraudsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victims identity.
The IRS has issued several alerts about the fraudulent use of the IRS name or logo by scammers trying to gain access to consumers financial information to steal their identity and assets.
Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes may seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.
Be alert to bogus emails that appear to come from your tax professional, requesting information for an IRS form. IRS doesnt require Life Insurance and Annuity updates from taxpayers or a tax professional.
The sites may ask for information used to file false tax returns or they may carry malware, which can infect computers and allow criminals to access your files or track your keystrokes to gain information.
Us Attorneys Office Reminds East Texans To Beware Of Social Security Scam Calls
BEAUMONT, Texas In connection with the Social Security Administrations March 4th National Slam the Scam Day, the United States Attorneys Office for the Eastern District of Texas reminds the public to be vigilant of Social Security scam calls.
For the past year, we have seen a steady increase in Social Security-related scam calls, said Acting U.S. Attorney Nicholas J. Ganjei. The financial exploitation of older Americans will not be tolerated. We are partnering with the Social Security Administration Office of the Inspector General to spread the word about these scams. We encourage anyone who receives such calls to hang up.
We are working with the Department of Justice and law enforcement agencies across the United States to combat Social Security imposter scamsbut our best weapon in this fight will always be awareness, said Inspector General Gail S. Ennis. I want to thank the many agencies and organizations that have joined us in our effort this year to alert Americans to hang up on suspicious calls, and talk to their family and friends about phone scams.
The U.S. Attorneys Office and SSA-OIG offer the following information about how to spot these scams:
- SSA may call you in some situations, but will NEVER call you and:
- Tell you that your Social Security Number has been suspended or offer to increase your benefits or resolve an identity theft issue for a fee.
- Threaten you with arrest or legal action if you do not immediately pay a debt, fine, or fee.
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What To Do If You Receive A Ssn Scam Call
If you receive a Social Security scam call, you should hang up immediately and report the details of the call to the Office of the Inspector General . You can do so by clicking here.
Once the scammers have your number, it can seem like theyre forever calling you, so if you want to try to minimize the number of unwanted calls you receive, you can add your number to the National Do Not Call Registry. You can add your home or mobile number to the registry for free. Click here or call 382-1222to learn more.
Social Security Benefits Status: How Fraud Works
Scammers tend to be attracted to senior citizens due to many weaknesses and vulnerabilities these usually have. There is no surprise that the Social Security Benefits status is one hot topic for fraud. Lets take a look and analyze what happens when you receive a Social Security scam call.
Seniors are typically worried about their money and are very protective of it. Often, they are on a limited income due to only receiving retirement or Social Security benefits. Their funds can be rather limited. They also tend to come across as being very trustworthy, aka naive.
Their appealing characteristics make them an easy target for a scammer to take advantage of them. Unfortunately, seniors have been scammed way too many times about their Social Security benefits. Today we are going to talk about three of them. How do these scams work?
Watch the video below to see Social Security Fraud exposed, or read on:
Even though seniors are on a fixed income, they also tend to have money in savings. They are older and have had the opportunity to save a lot longer than a younger person would. They went through many life experiences, and wisdom taught them that a person should set money aside just in case a life emergency pops up, so they will have the funds to cover the cost.
However, although they are smarter financially than a younger person may tend to be, that doesnt necessarily mean they have a lot of money.
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