Social Security Impostor Scams: What are They, How to Recognize Them
IRS scams have been around for years. Between October 2015 and September 2016, scams that played on people's fears of the tax man reached their peak, and around $17 million was reported lost during that time period related to those scams.
Following that wave, the IRS scam began to lose traction. Enough information had been circulated — by the IRS, the Consumer Financial Protection Bureau, other government agencies and even people on social media — that Americans were less likely to fall for these scams.
They didn't go away completely, but the amount lost every year to tax-related scams was reduced.
Scammers are nothing if they aren't innovative, though. As the tidal wave of income related to IRS scams started to dry up, criminals instead turned to Social Security scams. According to the Federal Trade Commission, Social Security scams account for $19 million in losses between April 2018 and March 2019 alone.
Find out more about these scams and how you can recognize them. Then, get some quick tips for staving off identity fraud and other scams with some practical measures.
What Are Social Security Impostor Scams?
Before understanding exactly what these scams are, it's important to understand the scope of this problem. The Federal Trade Commission says 76,000 people complained about the scam in just one year—and almost half of those complaints came in February and March 2019. This was according to a report published in April 2019.
The scams haven't stopped since then, and if you haven't experienced one of these fraudulent communications, you most likely will.
So, how do they work? There are several types of Social Security scams. Here are two of the most common.
1. The people are coming to get you scam.
This scam relies primarily on creating fear in a person with well-chosen words and threats. It works like this:
Someone contacts you, usually by phone.
The person or phone recording says that you are being contacted by the Social Security Administration.
The communication implies that your Social Security number is in some kind of trouble.
The only way you can "clear your number" or your name of this trouble is by making some type of payment to the scammer.
Why do people fall for this scam? Because the communication is worded in a way to send your heart and mind racing. Sometimes, the scammers claim a U.S. Marshal or sheriff's officer will arrive at your home shortly to arrest you. Other times, the scammers threaten seizure of your assets by the IRS or Social Security Administration.
The threats are vague, dramatic and urgent in nature, causing people to want to act.
2. The give us your information scam.
In other cases, scammers aren't out to get your money directly. They want something that's perhaps even more valuable: your identity.
These types of scams also use fear and uncertainty. People contact you about an issue with your Social Security number or another serious-sounding issue. They use various excuses, such as computers being down, to elicit information from you that the real Social Security office would have on hand.
These scammers try to get you to give them information such as your full name, Social Security number, address, or any other data that can be used to steal your identity. They then use this information to run up credit in your name, hack into your accounts, or register for benefits in your name. Alternatively, they sell this information on the internet to others who will do these things.
How Can You Recognize These Types of Scams?
Your best defense against these types of scams is being able to recognize them. Here are some ways to recognize that you're being targeted with a Social Security impostor scam.
You answer the phone and the recording you hear is best described as "sketchy." The recording quality is extremely poor, there are odd sounds in the background, or the speaker is using broken English. These are not hallmarks of a recording that might come from the Social Security Administration even if the agency did make robocalls.
The information provided to you is vague. If the Social Security Administration calls you, it's usually in relation to a specific claim already in process. The representative speaking with you would be able to provide detailed information about your claim. In contrast, scammers usually make vague statements such as "Your account has been locked" — which is not something the Social Security Administration does.
You receive an email or social media message that says it's from the Social Security Administration. Unless you initiated a specific conversation with the administration, it's unlikely to contact you via these methods other than for providing information on their programs and services. The Social Security Administration will not request personal or financial information through email or social media. If you do get an email claiming to be from the Social Security office, don't click on any links in it or use any numbers within the message. Check to see where the email originated from and call the Social Security Administration at a valid number. Let the representative know you received an email and want to know if it's legitimate.
The person contacting you asks for payment. The Social Security Administration will never demand payment via phone. If for any reason you ever owe the SSA money, it will send you a letter detailing how you should pay. Payment methods the SSA doesn't take? Google, Amazon, or iTunes gift cards, which are popular with scammers.
You're asked to provide your Social Security number. The real Social Security Administration already has this number. They'll never ask you for it, even to verify that you're who you say you are.
You're threatened. The Social Security Administration doesn't threaten to have you arrested or seize your possessions. If you for some reason owe the SSA money — such as you were paid benefits you shouldn't have received — you'll receive a letter detailing the issue and written instructions for how to manage payments.
One thing many people believe is that you can tell it's a scam by the caller ID. Unfortunately, this isn't true. Spoofing technology can allow scammers to appear as if they're calling from legitimate places of business or even government offices.
Tips for Protecting Yourself Against Scams in the Future
In addition to being able to identify Social Security scams and other threats to your personal information, you can follow some practical best practices to protect yourself.
Don't engage with callers you suspect are scammers. Hang up. Then, if you're still uncertain, look up a legitimate phone number for the agency the caller said they were from. That could be the Social Security Administration, the IRS, or even your bank. Call the agency, and explain that you received a phone call and want to ensure your accounts are fine and that there are no issues.
Don't click on links in messages from people you don't know. Even if the email appears like it came from someone you know or an official organization, be careful about clicking on links — especially if you'll be entering sensitive information such as passwords when you get there. It's better simply to use your internet browser bar to navigate to the official page.
Do block scam calls and install a robo-blocking app on your phone. You can limit the number of these calls you get to help reduce your risks and enjoy increased peace of mind.
Do invest in a privacy and credit protection service. A service like ours helps protect your personal and financial information. In the unfortunate event a scammer gets hold of your personal information, PrivacyGuard alerts you if there is suspicious activity detected with your monitored information.