After months of floating various anti-fraud proposals, the Social Security Administration (SSA) has settled on what appears to be a more or less permanent program to combat fraud. Effective immediately, the agency will conduct anti-fraud checks on all phone applications for benefits. Applicants flagged for suspicion will be required to verify their identity in person.
SSA estimates that about 70,000 of the 4.5 million claims filed by phone each year will be flagged. The new policy is expected to be less burdensome for retirees than earlier proposals, which would have required everyone applying for retirement or disability benefits to either appear in person, or use the website, which has its own identity verification process.
Initially, the agency said that individuals would no longer be able to file for retirement and disability benefits over the phone, citing an inability to sufficiently verify applicants’ identities. However, it later clarified that the phone restriction would apply only to those filing for retirement, survivors, or family benefits—not to those applying for disability benefits, Supplemental Security Income, or Medicare.
Increasing the Burden
Flagging phone applicants that present fraud or security concerns has the potential to make a difference, though some remain skeptical.
“With these rapid policy changes, do SSA customer service representatives even know what to look for?” said Suzanne Sando, Senior Analyst of Fraud & Security at Javelin Strategy & Research. “It seems unlikely that there has been enough training on how to handle these scenarios.
“Some of the warning signs usually include mismatched or outdated personal information, hesitancy in answering questions to verify information, and requests to change or add information banking and deposit information,” she said. “But there will also be an influx of call volume for legitimate beneficiaries wanting to ensure they don’t need to do anything, which will add to the workload of SSA representatives, who also now need to be on the lookout for potential fraud.”
Controls on Direct Deposits
The agency is also rolling out a new policy that prohibits beneficiaries from changing their direct deposit information over the phone. According to the agency, about 40% of Social Security direct deposit fraud stems from phone calls requesting bank account changes.
Going forward, beneficiaries will need to update their bank account information either through their agency’s website or by visiting a local office. Sando notes that while change in direct deposit details is generally considered a yellow flag—it remains a key indicator that warrants close monitoring.
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