One of the most sensitive pieces of personal information is\u00a0a consumer\u2019s\u00a0Social Security number (SSN), used by companies, the government, and other institutions\u00a0to identify\u00a0individuals–and highly sought-after by identity thieves.<\/p>\n
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In our era of data breaches, electronic transactions, and privacy concerns,\u00a0scammers are aware\u00a0of how concerned consumers are about guarding their SSNs, and that is why we are seeing an increase in the\u00a0\u201cSocial Security imposter scam.\u201d<\/p>\n
The Federal Trade Commission received\u00a0more than\u00a076,000 reports about the Social Security imposter scam in the past 12 months alone. With average losses of $1,500, this new scam is quickly becoming one of fraudsters\u2019 favorite tricks.<\/p>\n
The scam usually begins with a consumer receiving a call from someone claiming to be with the Social Security Administration. The caller informs the victim that their SSN has been suspended because it was\u00a0stolen or has been\u00a0involved in a crime.<\/p>\n
In a variation on this scam, the caller may also reach out to tell\u00a0a\u00a0victim that they qualify for an increase in benefits. All they need to do is provide the scammer with some information. Typically, these callers will ask their victims several questions to get personal information that they can then use to steal their identity or drain their bank accounts.<\/p>\n
Because of the numerous data breaches, these scammers may\u00a0have access to accurate personal information\u2014such\u00a0as\u00a0an individual\u2019s real SSN\u2014that they can use to build trust and appear legitimate. Regardless, before concluding the scam, fraudsters will almost always request payment to \u201cunfreeze\u201d the SSN or to process the increase in benefits. The scammer may request that they be paid via an unusual payment method such as by gift card, or some form of cryptocurrency like Bitcoin.<\/p>\n
One complaint we received from a consumer in Florida is typical of the scam:<\/p>\n
\u201cI\u00a0<\/em>received a call from the Social Security office explaining my Social Security number had been stolen and someone is committing money laundering [with the number].\u201d The thieves had \u201cabandoned a car with drugs in it, [that was] purchased in my name [and] found in Texas.\u201d<\/em><\/p>\n In order to resolve the issue, the consumer was \u201ctold to secure assets by purchasing gift cards,\u201d and provide the gift card numbers to the Social Security office. The consumer was told that he would receive a refund equal to the amount he paid to unfreeze their account by the Federal Reserve in a few weeks.<\/p>\n Unfortunately, the consumer never received a refund, and he lost nearly $20,000\u00a0to\u00a0this scam.<\/p>\n While the\u00a0scam can be devastating, there are several steps you can take to prevent yourself, and your loved ones, from falling victim to this scam:<\/p>\n The Social Security imposter scam can be difficult to detect and is growing in popularity. If you come across this scam, or if you fall victim to it, report it! You can file a complaint at Fraud.org via\u00a0our\u00a0secure online complaint form<\/a>. We\u2019ll share your complaint with our network of more than 90 law enforcement and consumer protection agency partners who can and do put fraudsters behind bars.<\/p>\n\n