WASHINGTON - U.S. Senator Charles Schumer called on the Social Security Administration to implement safety measures for benefit recipients after thousands of seniors have reported being victims of fraud. In a new practice, scammers are getting a hold of the bank account information of a Social Security beneficiary and then, with a simple phone call and minimal information, rerouting the payments to their own accounts. As of August 31, the Social Security Administration’s Inspector General received over 19,000 reports of attempted changes to bank account information, and they are currently receiving a shocking 50 additional complaints each day.  

To foil scammers, Schumer is calling on the Social Security Administration to provide notification via e-mail, text, letters, and automated phone calls to benefit recipients when their deposit information is changed.  Schumer described this as a simple and common sense step that could drastically reduce fraud and save Social Security payments. Schumer was joined by Chris Widelo, Associate State Director for AARP.

“It shouldn’t take just one phone call and a scrap of information for a thief to reroute Social Security payments to their own bank account,” said Schumer.  “Social Security is a lifeline to seniors, and a thief shouldn’t be able to sever that line with a snap of their finger.  Fortunately there are easy steps that the Social Security Administration can take to protect them, such as requiring immediate notification when bank account information is changed.”

The Social Security Administration recently announced that all individuals who applied for benefits on or after May 1, 2011 will receive their payments through direct deposit method or a debit card. Beginning March 1, 2013 all other beneficiaries will have to select an electronic payment method. According to the Office of Inspector General for the Social Security Administration, 94% of beneficiaries already use the electronic payment method.  It cuts down on theft of paychecks, administrative costs, and expedites payments to seniors. 

A new scam targeting seniors and disabled individuals who receive Social Security benefits is becoming more prevalent across the country. Scammers get their hands on the bank account information and full name of Social Security beneficiaries. Then, they contact the Social Security Administration and ask to have payments rerouted to their own accounts. Scammers often get hold of bank account information by preying on senior citizens with lottery and prize winning scams. As of August 31, 2012, the Inspector General of the Social Security Administration revealed over 19,000 reports of unauthorized changes to bank account information within the Social Security Administration. The Inspector General recommended that the Social Security Administration develop an automatic notification system to alert beneficiaries if any changes were made to their deposit information.