As a result, the Social Security Administration (SSA) is cracking down on identity verification procedures. Pension and labor benefit beneficiaries will now be required to visit in person to further avoid their benefits checks from being fraudulently rerouted. These new measures will go into effect on March 31. They want to end annual losses of more than $100 million due to direct deposit fraud. SSA has just recently, in violation of their authority, reversed these unauthorized direct deposit changes. This stopped $23.9 million in improper payments from being distributed to 19,662 Medicare beneficiaries.
The social security administration will begin requiring new online digital identity proofing and in-person identity proofing on March 31. Individuals unable to verify their identity through an online "My Social Security" account will be required to visit their local Social Security office. In support of the agency’s goal to improve the processing times of direct deposit change requests, whether submitted electronically or through the mail, they will now be processed within one business day.
This scam of redirecting benefit checks fraudulently has been a concern that the SSA has been issuing alarms about for years. Between January 2013 and May 2018, fraudsters redirected $33.5 million in benefits from 20,878 beneficiaries through unauthorized direct deposit changes. The agency has seen a dramatic rise in data breaches at private businesses. Unfortunately, this increase has provided fraudsters with the critical information necessary to carry out their scams.
Acting Social Security Commissioner Lee Dudek has had firsthand experience with the destructive impact of this fraud.
The beneficiary always needs the money they depend on. Many times it's their only source of income, and guys steal their information and redirect their check somewhere else. + Lee Dudek
Dudek experienced the negative impacts of the fraud up close while working at one of the agency’s field offices. He closed by emphasizing the need to make certain beneficiaries are getting their payments.
...it was up to SSA to make it right. + Lee Dudek
New proofing measures mean even more vulnerable people will have to make the trip in office. They need to authenticate their identity for all new benefit claims and changes to direct deposits. These measures are intended to make the program more secure, critics worry that they will create new hassles for beneficiaries.
The AARP expects that the new, more robust proofing will result in greater burdens for beneficiaries.
...more headaches and longer wait times to resolve routine customer service needs. + Nancy LeaMond
The organization also expressed concern regarding the speed of implementation.
...comes as a total surprise but is on an impractical fast-track. + Nancy LeaMond
AARP argued that the process must be transparent and allow for input from older Americans.
SSA needs to be transparent about its service changes and seek input from the older Americans who will be affected, because any delay in Social Security caused by this change can mean real economic hardship. + Nancy LeaMond
The SSA is planning to close at least 47 offices across the country. This decision is especially commendable considering they oversee about 1,230 outlets. The agency’s 800 number has continued to have issues with excessively long wait times. This problem can compound the effects of fewer in-person services.
