SSA impersonation scam explained

An SSA impersonation scam, or SSA scam, is a class of telecommunications scam targeting citizens of the United States by impersonating Social Security Administration employees. SSA scams are typically initiated through pre-recorded messages, or robocalls, that use social engineering to make victims panic and ensure they follow instructions given to them. In 2018, over 35,000 instances of SSA scam robocalls were reported to the Better Business Bureau with over $10 million lost by victims.[1] Approximately 47% of Americans were subject to an SSA scam robocall during a three-month period between mid- to late 2020, and 21% of seniors were subject to at least three robocalls during the same time period.[2] [3]

Operation

Initiation

The majority of SSA scams begin by sending out robocalls in large quantities to potential victims, though some use email and text messaging. Social engineering in used to panic recipients so a greater number will respond to the scammer.[4] The calls purport to originate from the Social Security Administration and claim that the victim's Social Security number (SSN) has been or will shortly be suspended for reasons including money laundering, drug dealing and fraud linked to the SSN.[5] Some variations threaten monetary or legal consequences for failing to comply with the call's instructions, such as freezing or seizure of money from bank accounts, the cancellation of state benefits, and arrest. The call subsequently demands the recipient call a "helpline" to prevent these actions. Caller ID spoofing is often employed, which makes the call appear to come from legitimate SSA phone numbers thus boosting its credibility.[6] [7] [8] [9]

Persuasion

Once a potential victim calls the "helpline", scammers attempt to persuade them of the legitimacy of the call with help from a prewritten script.[10] The scammers sometimes identify themselves using the real names and badge numbers of SSA employees, and spoof their phone numbers so the victim believes they are talking to a legitimate official.[11] [12] It has been suggested that scammers take advantage of data breaches in order to persuade the victim that they are speaking to government employees by relaying information gained from data breaches back to the victim.[13] During this phase scammers also aim to gain as much personal information as possible, including the victim's name name, a partial or full SSN, and their date of birth, under the guise of "verifying the caller's identity."[14] Victims may also be added to a sucker list if the scam is successful so they can be targeted with other scams.[15] The scammer will eventually ask the victim to pay to correct issues and prevent the consequences threatened in the original robocall.[16]

Payment

SSA scammers request payment from victims through untraceable routes, such as through gift cards, pre-paid debit cards, wire transfers, cryptocurrency, and sending packages of cash through a postal service.[17] [18] [19] The payment will undergo money laundering before it is claimed by the scammers. In response to the increased usage of gift cards as a means of payment to scammers, multiple companies have posted advisories warning about the cards' potential fraudulent uses,[20] however victims who have been successfully convinced by scammers often overlook warning signs and proceed to purchase them regardless.[21]

Increase in usage

Since 2017, there has been a rapid increase in the number of SSA impersonation scam robocalls reported to the Federal Trade Commission. In 2017, 3,200 incidents of SSA scam robocalls were reported to the FTC. In comparison, in 2018 over 35,000 instances were reported. In the first three months of 2019, over 65,000 instances of attempted SSA scams were reported.[22]

It is believed that fraudulent call centres now prefer to run SSA scams over IRS impersonation scams, the latter undergoing a sharp decline in late 2016.[23] [24]

Losses

According to the FTC, over $10 million was lost to SSA scammers in 2018 with an average loss of $1,500 per victim. A citizen in Ohio reportedly lost over $4,000 after falling for an SSA impersonation scam.[25] A retired professor in San Francisco fell victim to the scam and sent $4,000 in gift cards to the scammers, before posting a package consisting of $20,000 via delivery courier FedEx to a money mule working for the same group of scammers. The package, along with another sent by a victim living in Boston, has since been seized by authorities in Fairfax County, Virginia, and returned to their owners.[26] In 2019, $153 million was lost to scams impersonating government agencies, and according to the Federal Trade Commission, $37 million of that was attributed to Social Security scams.[27]

See also

Notes and References

  1. Web site: December 27, 2018. This is what a Social Security scam sounds like. live. https://web.archive.org/web/20201208152032/https://www.consumer.ftc.gov/blog/2018/12/what-social-security-scam-sounds. December 8, 2020. December 11, 2020. Consumer Information. Federal Trade Commission. en.
  2. Web site: How to Tell If Calls From Social Security Are Scams. live. https://web.archive.org/web/20201128073200/https://www.aarp.org/money/scams-fraud/info-2019/social-security.html. November 28, 2020. December 11, 2020. AARP. en.
  3. Web site: Press Release: Mayor Bowser Urges Residents to be Vigilant Against Increasing Telephone Scams Targeting Social Security Numbers. live. https://web.archive.org/web/20201219185926/https://thedcline.org/2020/12/10/press-release-mayor-bowser-urges-residents-to-be-vigilant-against-increasing-telephone-scams-targeting-social-security-numbers/. December 19, 2020. December 11, 2020. TheDCLine.org . en-US.
  4. Web site: Weisbaum . Herb . July 13, 2019 . Get a call from the Social Security Administration? It's the latest government imposter scam . live . https://web.archive.org/web/20201126224136/https://www.nbcnews.com/better/lifestyle/get-call-social-security-administration-it-s-latest-government-imposter-ncna1029031 . November 26, 2020 . January 11, 2021 . . en.
  5. Web site: Tompor . Susan . New Social Security phone scam makes you out to be a criminal . live . https://web.archive.org/web/20210202061340/https://www.freep.com/story/money/personal-finance/susan-tompor/2019/02/07/social-security-scam-drug-bust/2742178002/ . February 2, 2021 . January 19, 2021 . . en-US.
  6. Web site: April 11, 2019 . Protect Yourself from Social Security Number Spoofing Scams . live . https://web.archive.org/web/20201203172803/https://www.fcc.gov/protect-yourself-social-security-number-spoofing-scams . December 3, 2020 . December 15, 2020 . . en.
  7. News: Cohen . Howard . September 4, 2019 . A caller says your Social Security number is suspended. Here's how to report that scam . live . https://web.archive.org/web/20201219190322/https://www.miamiherald.com/news/business/article234707852.html . December 19, 2020 . December 16, 2020 . Miami Herald.
  8. News: Singletary . Michelle . December 2, 2019 . Have you received one of those Social Security scam calls? There's a new way to report it. . live . https://web.archive.org/web/20201231083617/https://www.washingtonpost.com/business/2019/12/02/have-you-received-one-those-social-security-scam-calls-theres-new-way-report-it/ . December 31, 2020 . December 22, 2020 . The Washington Post.
  9. Web site: Umawing . Jovi . January 10, 2019 . Social Security Number scammers are at it again . live . https://web.archive.org/web/20201123200656/https://blog.malwarebytes.com/cybercrime/2019/01/social-security-number-scammers-are-at-it-again/ . November 23, 2020 . January 11, 2021 . . en-US.
  10. News: July 16, 2019. 'Blood and cocaine' scare tactic used in latest phone scam, police say. WKBN-TV. July 6, 2021.
  11. Web site: Skiba. Katherine. January 13, 2021. Social Security Impostors Take Scams to the Next Level. live. https://web.archive.org/web/20210114230131/https://www.aarp.org/money/scams-fraud/info-2021/social-security-impostors.html. January 14, 2021. January 19, 2021. AARP. english.
  12. Web site: Scam Awareness. live. https://web.archive.org/web/20201231083557/https://oig.ssa.gov/scam. December 31, 2020. December 11, 2020. Social Security Administration.
  13. News: Singletary. Michelle. July 8, 2019. No, that's not the government calling threatening to 'suspend' your Social Security number.. The Washington Post. live. January 11, 2020. https://web.archive.org/web/20201231083707/https://www.washingtonpost.com/business/2019/07/08/no-thats-not-government-calling-threatening-suspend-your-social-security-number/. December 31, 2020.
  14. News: Hartman. Rachel. September 4, 2019. Don't Fall for the Suspended Social Security Number Scam. U.S. News & World Report. live. December 12, 2020. https://web.archive.org/web/20201220151120/https://money.usnews.com/money/retirement/social-security/articles/dont-fall-for-the-suspended-social-security-number-scam. December 20, 2020.
  15. Web site: Haines. Avery. October 24, 2020. The 'suckers list': How scammers repeatedly target victims. live. https://web.archive.org/web/20201217133902/https://www.ctvnews.ca/w5/the-suckers-list-how-scammers-repeatedly-target-victims-1.5158048. December 17, 2020. December 31, 2020. CTV News. en.
  16. News: Carrns . Ann . 2019-05-03 . Latest Rash of Scam Calls Come From ‘Social Security’ . 2024-05-28 . . en-US . 0362-4331.
  17. Web site: Fletcher. Emma. October 16, 2018. Scammers increasingly demand payment by gift card. live. https://web.archive.org/web/20201109035205/https://www.ftc.gov/news-events/blogs/data-spotlight/2018/10/scammers-increasingly-demand-payment-gift-card. November 9, 2020. December 11, 2020. Federal Trade Commission. en.
  18. Web site: Hebert. Amy. May 10, 2016. Scammers push people to pay with iTunes gift cards. live. https://web.archive.org/web/20201104225704/https://www.consumer.ftc.gov/blog/2016/05/scammers-push-people-pay-itunes-gift-cards. November 4, 2020. December 11, 2020. Consumer Information. Federal Trade Commission. en.
  19. Web site: Weiss. Gary. June 12, 2019. How Scammers Use Gift Cards to Steal Your Money. live. https://web.archive.org/web/20201112224413/https://www.aarp.org/money/scams-fraud/info-2019/gift-card-fraud.html. November 12, 2020. December 11, 2020. AARP. english.
  20. Web site: About Gift Card Scams – Official Apple Support. live. https://web.archive.org/web/20201215003200/https://support.apple.com/gift-card-scams. December 15, 2020. December 11, 2020. Apple.
  21. Web site: Tompor. Susan. September 21, 2016. New scam: Student puts $1,762 on iTunes cards to pay IRS. live. https://web.archive.org/web/20201113050540/https://www.freep.com/story/money/personal-finance/susan-tompor/2016/09/21/irs-itunes-federal-student-tax/90686230/. November 13, 2020. December 11, 2020. Detroit Free Press. en-US.
  22. Web site: Lahey. Susan. August 25, 2020. Common Social Security scams & how to avoid them. live. https://web.archive.org/web/20201231083619/https://www.msn.com/en-us/news/us/common-social-security-scams-how-to-avoid-them/ar-BB18mhYg. December 31, 2020. December 11, 2020. MSN.
  23. News: Carrns. Ann. May 3, 2019. Latest Rash of Scam Calls Come From 'Social Security' (Published 2019). en-US. The New York Times. live. December 16, 2020. https://web.archive.org/web/20201231083607/https://www.nytimes.com/2019/05/03/your-money/scam-calls-social-security-irs.html. December 31, 2020. 0362-4331.
  24. Web site: Fletcher. Emma. April 12, 2019. Growing wave of Social Security imposters overtakes IRS scam. live. https://web.archive.org/web/20201231083610/https://www.ftc.gov/news-events/blogs/data-spotlight/2019/04/growing-wave-social-security-imposters-overtakes-irs-scam. December 31, 2020. December 22, 2020. Federal Trade Commission. en.
  25. Web site: Matarese. John. September 24, 2020. Social Security scam steals $4,000 from Loveland woman. live. https://web.archive.org/web/20201023074748/https://www.wcpo.com/money/consumer/dont-waste-your-money/social-security-scam-steals-4-000-from-loveland-woman. October 23, 2020. December 11, 2020. WCPO-TV. Cincinnati. en.
  26. News: Jouvenal. Justin. December 6, 2020. A professor thought he was sending money to help federal officials catch human traffickers. It was a scam.. en-US. The Washington Post. live. December 11, 2020. https://web.archive.org/web/20201231083633/https://www.washingtonpost.com/local/public-safety/government-impersonation-scam-ssa/2020/12/04/1844c65c-2e6f-11eb-860d-f7999599cbc2_story.html. December 31, 2020. 0190-8286.
  27. Web site: Konish. Lorie. March 5, 2020. Social Security scams are on the rise. Here's what you need to know to stop them. live. https://web.archive.org/web/20201125023628/https://www.cnbc.com/2020/03/05/social-security-scams-are-on-the-rise-how-to-protect-yourself.html. November 25, 2020. December 11, 2020. CNBC. en.

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "SSA impersonation scam".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2025, A B Cryer, All Rights Reserved. Cookie policy.