Yahoo Finance U.S. Officials Sound the Alarm, Advising People Not to Fall for $600 Scam Targeting Social Security Recipients
Social Security scams have been prevalent for years, but this latest one has caught the attention of the Social Security Administration, which has issued a warning to unsuspecting Americans, according to Newsweek. Here's what you need to know about the scam: While Social Security scams are not new, their increasing sophistication is a cause for concern, and this latest scam has heightened concerns at the SSA.
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The SSA hosts its annual Slam the Scam Day on March 7 to raise awareness. According to data released by the SSA and shared by Newsweek, reported scams have been on the rise since 2022, with a 61.7% increase. In 2022, 13,000 scams were reported by the third quarter of the 2022 financial year and by 2023, they had risen to 21,080.
The latest scam that has been making the rounds is the $600 fake Social Security benefit increase that is supposedly happening from June 2024, as per the Newsweek report. There have been reports of people receiving information that this $600 increase is related to the annual cost-of-living adjustment (COLA). News station Marca reported that Social Security Commissioner Martin O'Malley revealed that at one point, the SSA was receiving up to 463,000 calls per day about the so-called benefit increases. O'Malley issued a warning to Americans: "Reports of a $600 payment increase are FALSE, please be aware and don’t fall for this stunt," and added, "We are alerting the public to these falsehoods, and we are addressing these bogus claims at the source. No Cost-of-Living Adjustment (COLA) increase will occur until January 2025."
The SSA also warned citizens to be extra vigilant of scammers trying to gain access to their Social Security details in exchange for the COLA increase. This scam has gained so much traction because the SSA issues the COLA annually, so many may assume it is correct. However, Inspector General Gail S. Ennis has reminded people that COLA increases will be automatic and that "no additional information is required for you to receive the legitimate COLA increase." The news about the increase will be shared online via the official SSA website.
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The COLA for 2025 will only be announced in October this year. According to the Senior Citizens League's predictions, the estimated COLA will be 2.57% in 2025, adjusted according to the average inflation rate.
Another reason this scam has garnered so much attention is a slight change in the June payments, which some people thought might be due to increased payments. WATE 6 News reported that usually, the Supplemental Security Income (SSI) payments are issued on the first of June, but because the first was on a Saturday, they were issued on May 31.
In fact, this is not the first time that $600 checks have been the target of scams. Back in 2021, CNBC News reported that a similar scam was doing the rounds in order to phish for information. At the time, millions of Americans were receiving text messages that a $600 stimulus check was coming in exchange for personal information. Accompanying the message was a link to a fake phishing website that imitated the IRS website. Again, the SSA reminded people that they are never required to exchange information for payments.
To help protect Americans from falling victim to Social Security scams, the SSA has released much-needed information about basic signs to watch out for, known tactics, how to avoid scams, and even some steps to guide Americans who suspect they are victims of a scam. The SSA also provides early warning for potential and emerging threats, like the newest AI scam that uses voice cloning technologies.
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This article U.S. Officials Sound the Alarm, Advising People Not to Fall for $600 Scam Targeting Social Security Recipients originally appeared on Benzinga.com
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