WASHINGTON — The Better Business Bureau issued a warning to those eligible for Social Security to be wary of scammers now that the SSI payments are increasing.
"Each year, the Social Security Administration approves a cost-of-living adjustment for recipients of Social Security Benefits and Supplementary Security Income," the BBB said. "Due to inflation, payments will increase by 8.7% this year. It’s a significant increase – the highest COLA approved in more than 40 years – and scammers are taking advantage.
"If you or a loved one receive Social Security benefits, stay alert to the signs of a scam."
How the scam works
Scammers contact recipients by phone, text, or email. This phony “Social Security Administration representative” claims recipients must apply for their cost-of-living increase.
They might ask the recipient to visit a website, send information via text or email, or speak with them on the phone to get the benefit.
The scammer will ask the recipient to verify their identity by sharing personal details, such as their full name, address, or Social Security number.
They may even ask recipients for their bank account information, claiming that the representative will deposit the extra money directly into their accounts.
"In any case, if the recipient gives their information to the person in question, they will have gained access to the recipient's most sensitive personal information, making them susceptible to identity theft," the BBB said.
Scammers might even be able to access the recipient's money.
How to avoid being scammed
- Remember, the SSA’s COLA is automatic. You don’t need to do anything to receive the increase in benefits, the BBB said. If someone tells you otherwise, you’re likely dealing with a scammer.
- Know how the SSA communicates. According to SSA, “If there is a problem with your Social Security number, we will mail you a letter. Generally, we will only contact you if you have requested a call or have ongoing business with us.” A call, text, or email from an SSA agent out of the blue is a red flag.
- Don’t give in to threats. SSA will never threaten you with arrest or legal action. They will never suspend your Social Security number or demand payment from you. They will never ask for personal information or banking details to give you an increase in benefits. If someone demands these things or threatens you over the phone, they are not with SSA.
- See the full article on BBB.org for more tips.
For more information
Read more about healthcare scams in this BBB tip. Learn more about other government impostor scams. Learn more about scams targeting older adults. If you've been the victim of a scam, report it to BBB Scam Tracker. By reporting your experience, you can help others avoid falling for the same scam.
