Fraudulent Social Security Calls Still Targeting Seniors

You’d think everyone would know to ignore these calls. However, these criminals are so convincing, says The New York Times in the article “How Not to Become a Victim of Social Security Fraud Calls,” that many people fall for the schemes and end up losing money. They buy gift cards and often, give up their personal PIN (Personal Identification Number), losing thousands of dollars.

It’s not clear whether the volume of calls is increasing. However, the government is getting thousands of complaints about them, reports the Social Security Administration’s inspector general, Gail Ennis. There have been 250,000 online complaints made, since a new dedicated digital reporting form was released in November 2019.

Other regulators are also reporting a flood of complaints. The Federal Trade Commission has received more than 166,000 complaints about fraudulent Social Security calls last year, and the average individual loss is about $1,500. The Senate’s Special Committee on Aging said that Social Security impersonation schemes were the single most reported fraud on its fraud hotline last year.

In January, the committee heard from a woman who lost $150,000 in a Social Security scheme.

The government is trying to fight the fraud in a few different ways. The Justice Department took legal action in January against two telecommunication companies that it says serve as “gateways” for illegal robocalls, by funneling them to the U.S. from oversees. However, stopping the calls is not easily accomplished. There are many gateway telecommunications companies, so hitting two just means that the criminals will take their business elsewhere.

Congress passed the Telephone Robocall Abuse Criminal Enforcement and Deterrence Act (TRADED), which requires telecommunication companies to adopt technology to identify spoofed calls. Spoofed calls are calls that appear to come from legitimate phone numbers. However, the FCC has yet to set rules for how the law will be carried out, so relief for consumers may be as far as a year away.

Here’s what you need to know about Social Security and other fraudulent calls:

  • Don’t answer calls from unfamiliar numbers. Let the calls go to voicemail, or the answering machine, if you still use one.
  • If you answer the phone and someone demands money immediately, hang up.
  • Report the call to the inspector general’s office on the Social Security Administration’s website. There’s a form that asks you to create a unique identification number, so you can ask for that number if anyone calls to verify their identity.
  • Be aware that even a phone call that appears to be from Social Security mostly likely will not be from the agency. Schemes that involve a suspension of benefits work because they target senior’s biggest fear—losing their benefits.
  • There are other Social Security schemes. Some involve official looking papers, and there has been an increase in the number of scams that start with an official-looking text. The Social Security Administration does not text people, unless they have signed up to have authentication codes sent to your phone when logging into a Social Security account.

There’s not much that can be done by the individual to stop the endless stream of robocalls. You can register your number on the Federal Trade Commission’s Do Not Call list, but that will only reduce calls from legitimate telemarketers. The criminals will still call. The best advice is not to answer the phone, unless it’s from someone you know, and never, ever give in to demands of immediate payment. That’s always a red flag for fraud.

Reference: The New York Times (March 6, 2020) “How Not to Become a Victim of Social Security Fraud Calls”

Managing an Aging Parent’s Financial and Legal Life

As parent’s age, it becomes more important for their children or another trusted adult to start helping them with their finances and their legal documents, especially an estate plan. In “Six tips for managing an elderly parent’s finances,” ABC7 On Your Side presents the important tasks that need to be done.

Make sure the family knows where important personal and financial documents are in an emergency. Start with a list that includes:

  • Bank, brokerage and credit card statements
  • Original wills, power of attorney, healthcare directive and living will
  • Insurance policies
  • Social Security information
  • Pension records
  • Medicare information

They’ll need a list of all accounts, safe deposit boxes, financial institutions and contact information for their estate planning attorney, CPA and financial advisors. Even if they don’t want to share this information until an emergency occurs, make sure it is somewhere a family member can find it easily.

Set up direct deposit for any incoming funds. Automating the deposit of pension and benefit checks is far more secure and convenient for everyone. This prevents a delay in funds being deposited and checks can’t be stolen in the mail or lost at home.

Set up automatic bill payment or at least online bill payment. Making these payments automatic will save a lot of time and energy for all concerned. If your parents are not comfortable with an automatic payment, and many are not, try setting up the accounts so they can be paid online. Work with your parents, so they are comfortable with doing this. They will appreciate how much easier it is and saving themselves a trip to the post office.

Have a “Durable Power of Attorney” prepared. This is a legal document prepared by an estate planning attorney that gives one or more people the legal authority to handle finances or other matters, if they become mentally or physically incapacitated.

Have a “Living Will” and a “Healthcare Power of Attorney” prepared. The Healthcare Power of Attorney allows a person to make health care decisions for another person, if they are mentally or physically incapacitated. The Living Will allows a person to express their wishes about end-of-life care, if they are terminally ill and unable to express their wishes.

Take precautions to guard against fraud. Seniors are the chief targets of many scams, for two reasons. If they have any kind of cognitive decline, no matter how slight, they are more likely to comply with a person posing as an authority figure. They have a lifetime of assets and are a “rich” target.

An estate planning attorney can work with your parents to assist in preparing an estate plan and advising the family on how to help their parents as they age. Most estate planning attorneys have access to a large network of related service providers.

Reference: ABC7 On Your Side (Sep. 5, 2019) “Six tips for managing an elderly parent’s finances,”

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