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News October 2013

Aid for Age

Social Security Fraud Ongoing and Growing

By Tait Trussell

Some geographic areas have higher concentrations of identity thieves. The most popular states for these crooks were reported to be Alabama, the Carolinas, Delaware, Georgia, Mississippi, and Texas. “There appears to be a ‘belt of fraud’ that runs through the rural Southeast, extending from Virginia to Mississippi, with significant activity in the Carolinas, Georgia, Florida and Alabama,” the report said.

The Inspector General for the Social Security Administration (SSA) is warning Social Security beneficiaries: be aware of fraud scams that target personal information. Criminals use phone calls, emails, and other ways to get personal information. Then they use it to commit identity theft.

In the most recent scam, identity thieves obtain the personal information of Social Security beneficiaries and use the information to try to open a “my Social Security” account on SSA’s website. “If successful, they then use that account to redirect the beneficiary’s direct deposit benefits to an account controlled by the thief,” the Inspector General report said.

This should in no way discourage people from using SSA’s “my Social Security” feature, which enables the public to get many services online. In fact, establishing your account eliminates the risk of a new account being opened by an identity thief. This type of crime is, however, is a reminder to protect your personal information as you would any other thing of value. Once thieves have your personal information, they can use it to open credit accounts, buy homes, claim tax refunds, and commit other types of fraud.

If you receive information from SSA indicating that you have opened a “my Social Security” account, and you did not open an account, “you should contact Social Security so appropriate action can be taken, and the matter may be referred to the Office of the Inspector General.” You can do so by visiting or calling a local SSA office or calling SSA’s toll free customer service at 1-800-772-1213. Deaf or hearing-impaired individuals can call Social Security’s TTY number at 1-800-325-0778.

Identity thieves swipe personal information in any number of ways. “They may pose as government officials in an attempt to convince you to provide personal and financial information.” observed the Inspector General. They may also claim that you have won a lottery or other prize, but that you must provide personal information or even send money to pay “fees,” “taxes,” or other expenses before you can claim your winnings.

To help prevent this type of fraud, the Inspector General recommends that you:

  • Never provide your personal information when receiving unsolicited calls or contacts.
  • Never agree to accept pre-paid debit cards or credit cards in another person’s name.
  • Never agree to send or wire money to an unknown person.
  • Always contact your local SSA office if you have a call from a person claiming to be from SSA,  and that person asks you to provide your Social Security number or other information.

To verify the legitimacy of a caller who claims to be an SSA employee, call your local Social Security office, or Social Security’s toll free customer service number at 1-800-772-1213. If you find that someone has stolen or is using your personal information to open credit accounts or for other non-SSA-related purposes, you should report that to the Federal Trade Commission at www.ftc.gov/idtheft or 1-877-ID-THEFT.

You can also find more tips on protecting your personal information on that FTC website. And you can report suspicious activity involving Social Security programs and operations to the Social Security Fraud Hotline, or by phone at 1-800-269-0271. Deaf or hearing-impaired individuals can call OIG’s TTY number at 1-866-501-2101.

This warning from the Social Security Inspector General’s Office was issued at the end of August.

Identity theft is a big business. The FTC last year estimated that as many as 9 million of us have our identity stolen each year. It has topped the list of consumer complaints filed with the agency for the past 12 years, amounting to about 15 percent of all complaints. Research from ID Analytics (which examines frauds and offers solutions) estimates that there are approximately 10,000 identity theft rings in the United States involved in this illegal enterprise.

ID Analytics looked at more than a billion applications for bank cards, store credit cards and wireless service over a nearly four-year period. Its algorithm detected the presence of identity thieves by looking for discrepancies in personal information or constantly-changing addresses – red flags that indicate fraud.

Some geographic areas have higher concentrations of identity thieves. The most popular states for these crooks were reported to be Alabama, the Carolinas, Delaware, Georgia, Mississippi, and Texas. “There appears to be a ‘belt of fraud’ that runs through the rural Southeast, extending from Virginia to Mississippi, with significant activity in the Carolinas, Georgia, Florida and Alabama,” the report said.

While “rings” can consist of as few as two people coordinating their efforts to steal people’s identity, some are larger. The study finds that a surprising number of fraud rings consist of families working together, according to a Time magazine story.

Some people fear the security of the Obama administration’s program to get thousands of “navigators” to assist Americans in putting their private data into the Affordable Care Act state exchanges for health insurance. Thirteen state attorneys have expressed concern about the issue of data security in the exchanges. Navigators receive training, but no security checks are made regarding their background or honesty.

 

Tait Trussell is an old guy and fourth-generation professional journalist who writes extensively about aging issues among a myriad of diverse topics.

Meet Tait