Contributed by: Nick Defenthaler, CFP®
Identity theft scams threaten millions of Americans. Reports of phony phone calls continue to flood into the Social Security Administration (SSA) and its Office of the Inspector General (OIG). Scammers claim to be Social Security employees and mislead victims into giving out personal information or making cash/gift card payments. But don’t worry, with our tips you can stay sharp and protect yourself.
Social Security employees WILL occasionally contact people. The SSA contacts those who have ongoing business with the agency, by telephone. However, they will NEVER threaten you. They will NEVER promise a Social Security benefit approval or increase in exchange for information or money. In those cases, the call is 100% fraudulent and your only option is to hang up.
You will receive a legitimate call from the SSA if you recently applied for a benefit, require a record update, or, of course, had requested a phone call from the agency. Otherwise, it’s abnormal to receive a call from the agency.
Social Security employees will NOT:
Suspend, revoke, or freeze your Social Security number
Demand an immediate payment
Ask you for credit or debit card numbers over the phone
Require a specific means of debt repayment, like a prepaid debit card, a retail gift card, or cash
Demand that you pay a Social Security debt without the ability to appeal the amount you owe
If there is a problem with your Social Security number or record, the SSA will, in most cases, mail a letter. If you need to submit payments to Social Security, the agency will send a letter with instructions and payment options. NEVER provide information or payment over the phone or Internet unless you are certain of who is receiving it.
There is also an email scam to lookout for. Victims have received emails that appear to be from the SSA or the OIG with attached letters and reports. These documents may seem real at first glance and may include official letterhead and government jargon. But look closer for spelling and grammar mistakes.
Unfortunately in today’s world, you need to have your guard up. Feel free to contact us at any time if you’re weary of a potential scam related to your financial plan – we are here to help any way we can.
If you’re interested in learning more, the SSA addresses the telephone impersonation scheme here.
Nick Defenthaler, CFP®, RICP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® He contributed to a PBS documentary on the importance of saving for retirement and has been a trusted source for national media outlets, including CNBC, MSN Money, Financial Planning Magazine, and OnWallStreet.com.