Don't Fall for These Social Security Scams. How You Can Spot Them and What To Do

As a new retiree that just began receiving Social Security, the last thing you may be thinking about is someone trying to scam you out of your money. Sadly, Social Security scams are very real and can leave victims scared and with a hole in their wallet. 

These types of scams typically involve the scammer impersonating an official agency and asking the unsuspecting victim to offer up their personal information that can then be used for more nefarious purposes. Other scams demand payment over the phone and threaten legal action against you if you don't pay up.

It's a scary prospect, but with the right knowledge in tow, you can spot the signs of a scammer and shut it down before it goes any further. Below, we'll lay out what to look for and what to do if you've fallen for one of these scams. 

For more, don't miss how and when you can change your Social Security number and the Social Security payment schedule. 

How to spot the signs of a Social Security scam

The Social Security Administration provides a list of signs and tactics that scammers employ. Here are four potential signs of a scam: 

Scammers often pretend to be from an agency or organization to gain your trust. The call is typically to inform you about a problem or that you've won a prize. Scammers will pressure you to act with haste. The scammer will require a specific way to pay.

Additionally, these are other known tactics used by scammers:

Threaten you with legal action if you don't agree to pay what they ask for immediately. Will tell you they will suspend your Social Security number. Will ask for personal information to confirm or activate a COLA (cost of living) or other benefit increase. Create a sense of urgency and pressure you to take action immediately, including sensitive personal information. Ask you to pay with gift cards, prepaid debit cards, wire transfers, cryptocurrency, or by mailing in cash. Threaten to seize your bank account and assets. Offer to move money to a "protected" account. Demand secrecy of all interactions you've had with them. Message you on social media.

Think you've been scammed? Here's what to do

If you find yourself in one of the situations above or you think you've already been scammed, take action with these steps: 

If you're on the phone with a potential scammer, hang up and stop interacting with them. Avoid clicking on any links and downloading or even opening any attachments that have been sent by the scammer.  File a report to the Office of the Inspector General.  Notify the three major credit bureaus about the incident: Experian, TransUnion and Equifax. Ask each bureau to place a fraud alert on your credit report. 

Scams of this type are increasingly common and sophisticated, so don't blame yourself or be embarrassed for falling for their tactics. Be sure to file a financial scam report with the SSA if you've experienced financial loss. 

Contact the Social Security Administration

For more information on scams or to file a report with the Social Security Administration, call by phone: 

Social Security phone number: 800-772-1213  Social Security Disability phone number: 800-772-1213 Medicare phone number: 800-633-4227 Social Security Fraud Hotline: 800-269-0271

Have more Social Security questions? Don't miss the Social Security and SSDI cheat sheet, and four ways you can get your Social Security Benefits suspended.