Close to 68 million Americans collect Social Security benefits every month, amounting to a total of $1.5 trillion paid out over the course of a year. That's a lot of money, which is why Social Security is a common target of scammers.
If you don't know what to look out for and are not familiar with common scams and scammer techniques, you may end up falling prey to one. Here are five scams to know about.
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1. Hi, I'm from Social Security, and...
It's very common for a Social Security scam to start with someone approaching you in person, via phone, or by text, pretending to be from Social Security. Once they get your attention that way, they may go on to try to get personal information from you, such as your birthday or Social Security number.
Remember that you don't really know who they are -- even if they try to earn your trust by showing that they know some of your information, such as your address. They may have gotten that via a data breach. Never give out your personal information to anyone whose identity you're not sure of.
2. Your Social Security benefits have been suspended...
Here scammers will try to alarm you, suggesting that your vital monthly checks will no longer be arriving -- unless you cooperate with them. You may be asked to provide that valuable personal information or even to pay them. Resist this, and know it's a scam.
3. You're in trouble because you were paid too much
Again, this scam is meant to alarm you and pressure you into quickly cooperating. The scammer may even threaten legal action against you. You may be asked to pay back what you allegedly were overpaid -- directly to the scammer. Don't believe any of this.
If you can't help but wonder if it might be true, just hang up or disconnect from the scammer and contact Social Security on your own, directly.
4. Call us for an increase in your benefits
Some will scoff at the obvious scammery in this come-on, but others will fall for it. Some have fallen prey because the scam arrived via snail mail, in an envelope that looked very official. The letter inside might promise a big cost-of-living adjustment (COLA) and say that in order to activate it, you need to call a certain number or visit a certain website -- where the scammers will try to get your valuable personal information.
Know that Social Security COLAs happen nearly every year, and they take effect automatically, for every beneficiary. You don't have to activate them.
5. Want to turn your Social Security benefits into more money?
"Want to turn your Social Security benefits into more money?" -- that prospect alone is probably intriguing, right? Scammers sure hope it is. They may suggest that they can help you get more money via some excellent investment.
You're certainly free to invest income you receive from Social Security, but do so in a responsible way, researching investment possibilities on your own or tapping a trusted advisor -- not someone who contacts you out of the blue, perhaps with some extremely exciting, hard-to-resist offer.
Tips to avoid getting scammed
The Social Security Administration (SSA) itself has issued many warnings and tips about common scams. Here are their four "basic signs of a scam," which feature four "P" words:
- Scammers pretend to be from an agency or organization you know to gain your trust.
- Scammers say there is a problem or a prize.
- Scammers pressure you to act immediately.
- Scammers tell you to pay in a specific way.
The SSA also lists many things that it will never do:
- Threaten you with arrest or legal action because you don't agree to pay money immediately.
- Suspend your Social Security number.
- Claim to need personal information or payment to activate a cost-of-living adjustment (COLA) or other benefit increase.
- Pressure you to take immediate action, including sharing personal information.
- Ask you to pay with gift cards, prepaid debit cards, wire transfers, cryptocurrency, or by mailing cash.
- Threaten to seize your bank account.
- Offer to move your money to a "protected" bank account.
- Demand secrecy.
- Direct message you on social media.
Read that list again, and remember that it's coming from the Social Security Administration itself.
Here are a few more tips and suggestions that can help you protect yourself:
- Be vigilant and skeptical. Know that scammers these days can be quite convincing as they contact you via mail, phone, text, or in person. They may even "spoof" phone numbers of local police or a trusted agency in order to gain your trust.
- If you're tempted to believe some worrisome thing a scammer says, just go to the horse's mouth: Call Social Security itself on your own and ask. Don't take the word of someone who contacted you out of the blue.
- Sign up for a my Social Security account at the Social Security website (SSA.gov). Then you can log in any time to see the latest estimates of our future benefits and conduct various business with the SSA. Setting up your account also means that a scammer can't fraudulently set it up on their own, in order to try to grab your benefits.
Finally, if you do end up falling victim to a Social Security scam, don't despair -- because you're not alone. It has happened to many thousands of people. But do report it -- to the Office of the Inspector General at oig.ssa.gov/report.
The more you know about Social Security, the less likely it is that you'll fall prey to a scammer. Know, too, that the tips above can help you steer clear of lots of other kinds of fraud and scams, such as tax scams, credit card scams, and Medicare scams.
