Scams are unfortunately ever-present in our society, and many of them target people who receive Social Security. Financial advisor D. Paterson Cope says if you want to keep your identity and money protected, you need to recognize the warning signs of a scam.
Here are some common warning signs of a Social Security scam and how you can protect yourself.
Many scammers rely on fear to scare Social Security recipients into giving away their personal information or sending money. One way they do this is call people and threaten legal action if they don’t pay a fee or a fine.
Know that the Social Security Administration never threatens its recipients with legal action, even if there is a legitimate issue about which they need to talk to you.
The only way that the SSA will send official requests is a letter sent via the United States Postal Service. They will never send an email or text message or make a call to notify recipients that there is a problem with their benefits or that they need more information.
If someone reaches out to you directly in any way other than the mail, it’s very likely that they’re trying to scam you. If you have a question about whether a call is legitimate, hang up and call the SSA directly, with the phone number provided on their website or other official documentation they’ve sent you.
There are times when a Social Security recipient may actually owe the SSA money. In these cases, again, the SSA will send an official letter notifying the recipient and provide instructions for how to make payments using U.S. mail.
What the SSA will never do is ask you to pay a fine or fee to the government using cash, a wire transfer, or a pre-paid card. Scammers tell people that payments need to be made this way for one simple reason — they are very hard to recover and trace.
You should never, ever send money to anyone with any of these methods of payment or any other gift card.
Another common scam is for people to tell Social Security recipients that they could increase the benefits they receive from the SSA in exchange for a payment made to them.
As D. Paterson Cope explains, Social Security benefits are not a this-for-that exchange. They are determined by each individual’s unique situation and work history.
If someone is owed an increased amount of benefits, the SSA will reach out to them via a letter in the mail and notify them of the steps to take to get the extra money. In no instance would anyone from the SSA actually request a payment be made in exchange for an increase in benefits.
Paterson Cope, CFP® is the founder and CEO of Cope Private Wealth, a financial planning and wealth management firm specializing in assisting retirees and people who are about to retire. D. Paterson Cope has been providing financial advice for more than 30 years. He first earned the designation of Certified Financial Planner (CFP) in 1997. When he isn’t working, he enjoys spending time with his wife, Jennifer Miree Cope, and the rest of his family in Mountain Brook.
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