Expense Reimbursement Fraud

Social Security Phone Scams

Despite the National Do Not Call registry and features such as caller ID, phone fraud is thriving in the mobile phone era. Using spoofed numbers — which appear to be connected to legitimate government offices and businesses or that resemble your own number — fraud perpetrators say anything and everything to try to steal your money.

Recently, scammers have posed as Social Security officials to steal from unsuspecting consumers. Since January 2018, the Federal Trade Commission has received more than 63,000 reports about this scam. Only three percent of reporting call recipients lost money, but the losses total $16.6 million.

Anatomy of a crime

Here is how the Social Security scheme works: criminals call from spoofed phone numbers and tell consumers that their Social Security number has been linked to a crime and has been ‘suspended.’ The callers claim that the consumer’s bank accounts will be seized by the government unless they withdraw money and transfer the amount to gift cards. While the thief remains on the line, the consumer purchases the gift cards. Then the caller asks for the gift card numbers and PINs, supposedly for ‘safekeeping.’ With that information, the fraudster uses the cards or sells them on the black market.

The same callers also usually ask consumers for their Social Security number for confirmation purposes. With this critical piece of personal information, crooks can steal someone’s identity.

Truth of the matter

The truth is that the Social Security Administration does not suspend Social Security numbers, nor does it ask people for their numbers over the phone. And no government entity would ask for payment in gift cards. Criminals hope that you are not aware of these facts. They also use fear — of arrest, loss of savings, and, in some cases, deportation — and a sense of urgency to get what they want.

Fortunately, you can avoid becoming the target of a Social Security phone scam by following some simple guidelines:

  • If you do not recognize the number appearing on your caller ID, do not answer the phone
  • Install a spam call blocker (available in mobile app stores) and use it for any calls that seem suspicious
  • If you inadvertently answer a spam call, hang up immediately
  • Never provide personal information, including bank account or Social Security numbers, to anyone over the phone
  • Report suspicious calls to

Businesses beware, too

Note that it is not just consumers who might fall victim to phone fraud schemes. Fraudsters also target businesses to secure sensitive information such as bank account numbers, routing numbers, and passwords. If you are a business owner, educate employees about phone scams and implement fraud controls. Contact us for more information.

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