Three Key Takeaways from Social Security Subcommittee Hearing on Identity Fraud

Social Security scammers are getting more brazen, targeting individuals using scare tactics and trickery. According to the Social Security Administration (SSA), the agency received more than 568,000 reports of Social Security-related scam attempts in 2021 totaling more than $63.6 million in losses to victims – and the numbers seem to be increasing each year!

This has drawn the attention of the U.S. Congress Ways and Means Subcommittee on Social Security. It recently held a hearing to discuss the SSA’s responsibility to do more to protect Americans from Social Security number (SSN)-related identity theft, as well as the government’s failure to help individuals whose SSNs have been compromised. Here are three key takeaways from that meeting:

1. The financial fallout and stress from fraud are extensive. Congress needs to cut the bureaucracy and red tape individuals must go through when trying to replace a compromised SSN.
2. There needs to be a single point of contact to help individuals resolve identity fraud cases. Too often they are trying to navigate a maze of bureaucracy.
3. The SSA’s fee hike to use its electronic consent-based SSN verification program (eCBSV) will make it harder and more expensive for financial institutions to help try to prevent identity fraud. The system is designed to allow banks to use SSA records to help detect synthetic identities in real time and stop fraud before it begins.

The Seniors Trust is committed to providing important information to seniors on how to prevent scams that target their identity or finances, including trying to steal Social Security numbers. We also want Congress to enact The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment COLA, increase minimum benefits, and ensure the long-term solvency of the Social Security program.