A new report from the Federal Trade Commission found that tax return fraud actually declined recently, and Social Security scams stepped in to take their place. These scams can manifest in a few different ways, but all of them are intended to steal your money, your identity or both.
Listen to the real scam below:
In one of the Social Security scams circulating, a caller claiming to be from the Social Security Administration informs you that there has been suspicious identity theft activity involving your SSN. You are urged to purchase a prepaid debit card, iTunes gift card or other reloadable funds card and transfer all of your money out of your bank accounts and onto that card. This is supposed to keep those dangerous hackers from getting your money. The agent calls back later to confirm that you have done it, and then tells you the Social Security Administration will record the card’s account number and PIN number in your file, supposedly to protect your money in case something happens to that card. Once you read the card number and the PIN number to the fake agent, they will drain the funds off the card and you will now be completely broke.
The more common of the Social Security scams, is to call a potential victim and claim that their SSN has been suspended. This scam has actually been at work for some time, but there has recently been a renewed number of victim reports. In this Social Security scam, a fake agent tells you that your number has been suspended due to possible identity theft, meaning you will no longer receive benefits, it can no longer be used for health care or other benefits. You are required to confirm your SSN and some other sensitive personal information for the agent in order to reinstate your SSN. After you confirm your personal identifying information, the fake agent steals your identity and uses it for a variety of malicious activities, including opening new lines of credit and claiming your benefits.
In order to protect yourself, you must adopt one ridiculously easy habit: never believe what you hear over the phone. It is far too easy to scam people via phone, and thanks to simple tools that anyone can acquire, the scammer can even change their phone number on your caller ID in order to look legitimate. Therefore, it is vital that you ignore any warning or request from anyone who calls you—and the same is true for emails, social media messages or texts. If there is a genuine problem with your account or your information, you can always contact the organization, agency, or business directly to put the matter to rest.