Protecting Seniors: The Battle Against Social Security Fraud

Edited by: TJVNews.com

For Liz Birenbaum and her 88-year-old mother, Marge, the second Wednesday of each month had been a routine, marked by the arrival of Marge’s Social Security check, vital for covering her expenses at a long-term care center, as was recently reported in the New York Times.  However, in January, when the expected deposit failed to materialize, it sparked a chain of events that unearthed a distressing reality: someone had infiltrated Marge’s Social Security account and rerouted her benefits to an unfamiliar Citibank account.

Reflecting on the ordeal, Ms. Birenbaum shared her initial shock, stating, “Someone had gotten in…Then I hit a panic button.” According to the information provided in the NYT report, the discovery sent her scrambling to rectify the situation, a task made even more daunting by the casual acknowledgment from a Social Security representative that such occurrences were “all too common.”

Indeed, Social Security-related scams have become pervasive, with fraudsters employing various schemes to extract money and personal information from unsuspecting individuals. However, the NYT report noted that the particular form of fraud witnessed by Marge and Ms. Birenbaum, where criminals hijack online Social Security accounts to redirect benefits, has been a persistent threat for over a decade.

Once fraudsters gain access to an individual’s online Social Security account, they wield considerable power, capable of altering beneficiary information, changing addresses, redirecting deposits, or even requesting replacement cards, as per the information contained in the NYT report. The repercussions of such actions can be devastating, especially for vulnerable seniors like Marge, whose financial stability hinges on these benefits.

The prevalence of such fraud underscores the urgent need for enhanced security measures and heightened vigilance to protect seniors and their hard-earned benefits. As cases like Marge’s highlight, the consequences of Social Security fraud extend far beyond financial losses, often causing distress, confusion, and upheaval in the lives of those affected.

The Social Security Administration (SSA) serves as a vital lifeline for over 70 million beneficiaries, disbursing nearly $120 billion in benefits every month. However, as was indicated in the NYT report, alongside its indispensable role in providing financial support, the SSA also finds itself at the forefront of an escalating battle against fraudsters seeking to exploit vulnerabilities within the system.

According to anti-fraud officials at the SSA, an alarming 2,000 beneficiaries fell victim to direct deposit redirection scams last year alone, as was reported by the NYT. This form of fraud, where criminals reroute benefits to unauthorized accounts, has proven to be both lucrative for perpetrators and devastating for those who lose access to their rightful benefits.

Speaking to the NYT, Jeffrey Brown, a deputy assistant inspector general at the Office of the Inspector General, shed light on the modus operandi of fraudsters, when he stated, “Fraudsters were able to obtain sufficient information about a true beneficiary to convince the Social Security Administration that they were that beneficiary…Once they were in the front door, they were able to change their direct deposits.” This deceptive tactic highlights the sophistication and audacity of those perpetrating these crimes.

The scope of the problem is further underscored by findings from the Office of the Inspector General, revealing that an estimated $33.5 million in benefits intended for nearly 21,000 beneficiaries were redirected over a five-year period ending in May 2018, the report in the NYT indicated. Additionally, proactive measures prevented another $23.9 million in fraudulent redirects during the same timeframe, highlighting the critical importance of robust fraud detection and prevention mechanisms.

The COVID-19 pandemic exacerbated the threat of Social Security-related scams, with closures of SSA offices prompting increased reliance on online services. Also speaking to the NYT was Maria Mayo, associate director of the Federal Trade Commission’s division of consumer response and operations. She noted a significant uptick in reported cases during this period and emphasized, “A lot of consumers are letting us know they found out that their direct deposit was redirected to another account or a fraudulent account…they got an impostor call and they provided their information, and they believe that is how that information was used to redirect the benefit.”

According to anti-fraud officials at the Social Security Administration (SSA), approximately 6,100 fraudulent claims were detected last year alone, accounting for 0.3 percent of all web-initiated retirement claims.

The methods employed by criminals to obtain personal identifying information are diverse and alarming. Another person who spoke to the NYT was Amy Nofziger, director of fraud victim support at AARP Fraud Watch Network. She highlighted several cases where unsuspecting individuals fell victim to scams, ranging from impostors promising insurance subsidies to criminals posing as representatives of banks or credit bureaus. She emphasized the ease with which fraudsters can obtain partial Social Security numbers and exploit them for illicit gains.

Fraudsters deploy various strategies to collect valuable personal information, often preying on individuals’ trust and vulnerability. As was noted in the NYT report, some impersonate healthcare providers or officials from doctor’s offices, while others resort to compromising individuals’ devices to access sensitive data, including passwords and personal details saved on digital platforms.

Moreover, the proliferation of dark web marketplaces has facilitated the sale of stolen personal identifying information, acquired through security breaches and data leaks. The NYT report said that Pam Dixon, executive director of the World Privacy Forum, underscored the heightened risk faced by individuals living in medical or assisted living facilities, labeling identity theft targeting these populations as “among the ugliest forms of identity theft.”

The repercussions of identity theft and fraudulent claims extend far beyond financial losses, often resulting in emotional distress and significant disruptions to individuals’ lives. Addressing this growing threat requires a concerted effort from government agencies, law enforcement, and advocacy groups to implement robust security measures, enhance consumer education, and develop effective mechanisms for detecting and preventing fraudulent activity.

A recent report from the Office of the Inspector General (O.I.G.) sheds light on deficiencies within the administration’s portal, “my Social Security,” highlighting the need for enhanced identity verification measures to mitigate the risk of fraud.

According to the O.I.G. report, “my Social Security” does not fully comply with federal requirements for identity verification, particularly in validating new registrants’ identities, the NYT report indicated. The report also notes that the agency’s current identity verification process, established in 2012, lacks stringent measures to reverify users’ identities, leaving accounts vulnerable to exploitation by fraudsters.

Joe Lopez, assistant deputy commissioner for analytics, review, and oversight at Social Security, emphasized the agency’s commitment to addressing these deficiencies and enhancing its digital identity verification process, according to the NYT report. He highlighted ongoing efforts to analyze online transactions and detect anomalous behavior, enabling the agency to implement additional controls to thwart potentially fraudulent activity.

“The environment is always developing,” Lopez stated, emphasizing the dynamic nature of digital threats. “We modify our models as needed,” he added, the NYT reported, underscoring the agency’s proactive approach to adapting to emerging challenges and implementing robust safeguards to protect individuals’ personal information.

Despite the SSA’s efforts to bolster its identity verification process, concerns persist regarding the adequacy of existing measures and the need for further improvements. The report added that the O.I.G. has previously recommended enhancements to the portal’s identity verification protocols, signaling the importance of ongoing scrutiny and vigilance in combating fraud.

In response to the O.I.G.’s findings, the SSA has taken steps to implement several recommendations, including the establishment of a fraud analysis team for investigations. Additionally, the report in the NYT said that he agency has committed to updating its identity verification process to address evolving threats and strengthen its defenses against fraudulent activity.

According to officials from the O.I.G, the SSA employs various tactics to mitigate the risk of benefits diversion and loss, including sending notices via mail to beneficiaries. These notices serve as a crucial line of defense, prompting beneficiaries to contact the agency if they suspect unauthorized changes to their direct deposit information, as was pointed out in the NYT report.  Such measures have proven effective in thwarting millions of dollars in fraudulent activity and preventing beneficiaries from falling victim to cyber scams.

However, navigating the complexities of rectifying fraudulent changes can be a daunting task for beneficiaries like Marge and her family. Liz Birenbaum, a marketing consultant, and her brother faced significant challenges in recovering their mother’s diverted benefits and securing her account, according to the information in the NYT report.  Despite their concerted efforts, which included reporting the crime to the O.I.G., the F.B.I., and engaging with state and federal representatives, they encountered bureaucratic hurdles and lengthy wait times when attempting to rectify the situation.

Ms. Birenbaum’s persistence and advocacy were instrumental in navigating the bureaucratic maze of the SSA and ensuring her mother’s financial security. Despite spending hours on hold and coordinating with various agencies, they successfully restored Marge’s benefits and safeguarded her account, the report added. Through innovative solutions such as appointing a representative payee and finding alternative means to address the issue without inconveniencing Marge, they exemplified the resilience and dedication required to combat social security fraud effectively.

For Marge and her family, the resolution of this ordeal brought relief and a sense of closure. However, the NYT report said that Ms. Birenbaum acknowledged that many beneficiaries may not have the same level of support and advocacy, leaving them vulnerable to cybercriminals’ schemes. As she aptly states, “For many, who don’t have advocates pushing every day, cybercriminals win.”

In the ongoing fight against Social Security fraud, the importance of proactive measures, vigilant advocacy, and collaborative efforts cannot be overstated. By empowering beneficiaries with the knowledge and resources to identify and report fraudulent activity, and by implementing robust security measures and responsive support systems, stakeholders can effectively safeguard individuals’ benefits and uphold the integrity of the Social Security system.