One of these social security scams just struck a good friend of mine. They got his Wells Fargo account, a credit card and were on their way to getting into another account to steal his retirement money.
Quick action put a stop to it, but not before accounts were compromised. My friend who is smart and not easy to fool was almost added to the list of people being convinced by government imposters.
The FTC reports that between January and September 2021, $442 million was swindled from Americans by government imposter scams.
Social Security ‘Cost-of-living Adjustment’ Scam
The Social Security Administration is issuing a warning about scam letters arriving in mailboxes. While the SSA letterhead looks official, the scam advises the recipient to call a toll-free number to activate an increase of benefits from a cost of living adjustment. That’s when the scammer attempts to have you reveal account information or other personal details.
Fact: Cost of living adjustments (COLA) are automatic and never require you to activate or call a phone number.
Social Security scams are increasing beyond phony letter writing. Scammers are using other methods to reach you including social media.
When a person identifying themselves as a Social Security Administration representative calls, leaves a voicemail, email or text message, it’s 99.9% certain to be a scammer.
These are the latest tricks being used to scam you
Here’s what we know according to the Inspector General. Scams often threaten arrest or legal action against you unless you immediately provide information or send money. Don’t fall for it.
How to avoid getting scammed
- The most important advice is to never give out any information – none.
- Hang up the phone without saying a word.
- Delete any suspicious texts or emails
- Never respond to scammers. Sometimes a simple response like a well-deserved 4 letter curse word only tells them to continue to pursue you.
Upping SSA Benefits scam
Another scam tactic starts off with an enticing promise to increase your social security benefits or fix a problem if you pay a fee or move your money into a protected account.
Fake documentation trick
Scammers targeting you will often try to gain your trust by providing fake social security documentation and false evidence. Scammers may even use the name of a real government official.
How Social Security Scams evolve
These are just a few of the current tricks being deployed to steal money from you. Be on the lookout for changes in their approach and new tactics to scam you.
Top ways to keep your social security number safe
Now that you know how someone can take your social security number and use it to commit identity theft, below are key ways to keep it safe!
1. Hide/safe keep your social security number card
Put your social security number card in a very safe place, such as a safe, bank safe, or filing cabinet that can be locked. Because it is used so frequently, those 9 digits are worth memorizing. If your wallet is lost or stolen and you keep your SSN card in there, it will be messier than losing just money or your ID. Don’t carry your social security card in your wallet or purse!
2. Use an identity theft or fraud protection service
Companies such as Identity Guard can monitor your SSN and alert you if it is sold on the dark web or being used to open an account. The faster you know, the quicker you can shut down the damage. In fact, some companies will help you freeze your bank and credit card accounts to prevent further use by criminals. Fortunately, taking advantage of stellar fraud protection from our top pick, Identity Guard is even more affordable with an exclusive CyberGuy savings (up to 52% off). Click here for our review: Best identity theft protection services 2024
3. Go online
Skip jotting down your social security number on in-person forms. When your social security number is jotted down on paper, it is hard to control how the information gets used or disposed of. If you can submit forms online, you can skip the risk of having your SSN from getting into the wrong hands. If you mail in forms that denote your SSN, you risk having that piece of mail stolen or lost.
4. Opt out of inputting SSN
Even though your SSN is requested on some forms, it is not always necessary. If a future employer is requesting your SSN, double-check why they need it. They would most likely need it to run a background check, which you should know about anyway. Additionally, some establishments allow you to provide the last 4-digits of your SSN until you are finalizing a screening process, etc.
5. Sign up for a social security account:
Go to the official Social Security Administration website to create an account. Because only one account can be created per social security number, it is safer if you claim it so no one else can by piecing together your personal information (along with your SSN) to claim it fraudulently. Make sure it is connected to a secure email account that you check frequently. This account also provides up-to-date data on earnings and benefit distributions so you can see if anything is ‘off’.
6. Combat child identity theft
Open accounts for your children’s SSNs because you want to claim them for them early and be able to monitor any movement related to their social security number.
7. Secure documents
Some records that contain your social security number are important to keep on hand, such as income tax filings. If they are kept digitally, encrypt and or password-protect the document or folder, especially if it is uploaded to the cloud. Keep offline documents with SSNs in a safe or shred instead of throwing them away.
Remember you (usually) only get one social security number in a lifetime, it is important to safeguard that data with your ‘life’!
8. Remove your personal information from the internet
While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren’t cheap – and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.
My top recommendation is Incogni, which has a very clean interface and will scan 195 websites for your information and remove it and keep it removed.
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9) IRS Identity Protection PIN (IP PIN)
To further protect your tax returns from identity theft, the IRS offers an Identity Protection PIN (IP PIN). This is a six-digit number that prevents someone else from filing a tax return using your Social Security number or Individual Taxpayer Identification Number (ITIN). The IP PIN is known only to you and the IRS, adding an extra layer of security to your tax filings.
How to get an IP PIN
- Online Request: The fastest way to receive an IP PIN is to request one through your online account on the IRS website. If you don’t already have an account, you must register to validate your identity.
- Alternative Methods: If you can’t establish an online account, there are other methods, but they take longer. You can file an application or request in-person authentication.
Using Your IP PIN
- Enter the six-digit IP PIN when prompted by your tax software or provide it to your trusted tax professional when filing your return.
- An IP PIN must be used on all federal tax returns during the year, including prior year returns.
- Do not reveal your IP PIN to anyone except your tax professional when you are ready to sign and submit your return.
Important information
- An IP PIN is valid for one calendar year, and a new one is generated each year.
- If you lose your IP PIN, you can retrieve it online or have it reissued by calling the IRS.
By using an IP PIN, you can significantly reduce the risk of tax-related identity theft and ensure that your tax returns are processed smoothly and securely.
10) Recognizing and reporting a Social Security scam
If there is a problem with a person’s Social Security number or record, Social Security will typically mail a letter. You can learn more about recognizing Social Security-related scams, including how to report a scam quickly and easily online to Social Security’s Office of the Inspector General, by reading more at www.ssa.gov/scams.
Tell us: Have you been a victim of identity theft? Let us know by commenting below or writing us here.