By: Theo Smith // March 28, 2020
At the Senate Aging Committee hearing on Wednesday, Machel Anderson shared her experience on how she fell victim to a Social Security scam.
When Anderson, a Utah resident, received a phone call with the caller ID labeled “Social Security Administration” she was convinced her Social Security number had been suspended due to suspicious activity. After several days of manipulation and threats, Anderson provided the callers with sensitive financial information and transferred more than $150,000 to them. Later, when discussing the situation with a friend, Anderson realized the call was a scam.
“Having our life-savings stolen made me realize that there are some very bad people in this world, but losing the money also reminded me that I am rich in many ways, I live a wonderful life,” said Anderson. “Maybe hearing my story will protect some other family that would’ve had a harder time recovering from something like this, maybe my story will help scammers stop once and for all.”
The Committee led by Senator Susan Collins (R-ME) and Senator Bob Casey (D-PA), heard testimony from Social Security Administration officials and other scam victims in order to determine how to prevent scams and what support is needed to protect seniors.
“We must not only be concerned for the sake of individuals targeted, but also for the integrity of the federal departments and agencies tasked with serving all of us,” said Sen. Casey.
During the hearing titled, “That’s Not the Government Calling: Protecting Seniors from Social Security Impersonation Scam,” Sen. Collins outlined the process and features of these scam calls and explained how seniors have been disproportionately affected by scams. According to the American Association of Retired Persons (AARP), an interest group that works to address the needs and interests of middle-aged and elderly citizens, Americans aged 60 and older are five times more likely to fall victim to an online or cyber scam.
“The Social Security impersonation scam capitalizes off of hard-working Americans,” said Sen. Casey. “Seniors who depend on social security benefits to meet their needs are likely to lose an entire month’s income if they were to fall victim to this scam. This is unacceptable.”
This hearing was the 25th hearing the Senate Aging Committee has heard in the past seven years in order to examine and address scams affecting senior citizens. Since 2017, Social Security impersonation scams have been on the rise, and became the number one scam in 2019.
“This scam has resulted in 38 million dollars in losses, in 2019 alone,” said Sen. Collins. “I suspect that this is just the tip of the iceberg because many seniors who have been affected by this scam are either too embarrassed to report their losses or they don’t know who to turn to.”
The Social Security scam has affected hundreds of thousands of senior citizens in the United States. The Committee met to examine how the Social Security scam functions, what systems are currently in place to address the issue, and what additional resources are needed to stop this scam.
While discussing scam techniques and trends, Social Security Administration Inspector General Gail Ennis, described the actions the agency and the Office of the Inspector General are taking to investigate and prevent scams.
During his statement, Social Security Administration Commissioner, Andrew Saul, emphasized the importance of interacting via telephone and how fraudulent calls negatively affect the agency’s ability to collect data and communicate with the public. Saul explained improvements to the agency’s Fraud Hotline and new online tools aimed at educating the public about scams and how to avoid them.
“In our ongoing fight against fraudsters, one of the most powerful tools is public education,” said Saul. “We have armed our frontline employees with instructions and updates on how to assist potential victims of phone scams, and we are communicating scam information agency-wide.”
During the hearing, Sen. Collins and Sen. Casey heard from Justin Groshon, the manager of the Saco, Maine Social Security Office and Nora Dowd-Eisenhower, the Executive Director of the Philadelphia, Pennsylvania Commission on Aging. Both Groshon and Dowd-Eisenhower discussed their experiences with scam calls and identified members of the public who are most commonly targeted, the elderly.
According to the Association of Certified Fraud Examiners (ACFE), the world’s largest anti-fraud organization, the elderly are typically targets for scams because they may be lonely, are more willing to listen, and are more trusting than younger individuals.
Prior to 2019, IRS scam calls were the number one scam affecting the elderly for five consecutive years. According to past testimonies from the Senate Aging Committee, seniors lose an estimated $2.9 billion annually from financial exploitation.
The meeting adjourned after Sen. Collins and Sen. Casey announced the release of the 2020 Fraud Book, the Social Security Administration’s online resource to educate and train the public about scam calls and how to avoid them.
Advocates, victims, and the Social Security Administration expressed that the best way to protect yourself is knowing how to spot a scam.
Advanced Reporting Times, Spring 2020 