WASHINGTON – Social Security Administration (SSA) impersonation calls are the nation’s top reported scam, announced Senator Susan Collins (R-ME) at a Senate Aging Committee hearing on Jan. 29.
The Federal Trade Commission (FTC) reports that fake Social Security calls have resulted in $38 million in reported losses to Americans in 2019 alone. The scam typically involves an unsolicited robocall with a spoofed caller ID falsely displaying the SSA as the source of the call. The scammer then attempts to intimidate the victim into revealing personal information over the phone or transferring thousands of dollars in a swift manner, all the while asserting that the agency will impose severe fines or jail time if they do not comply.
The hearing, led by Chairwoman Collins and Ranking Member Bob Casey (D-PA), covered recent SSA efforts to stop the scams and what needs to be done on a federal level moving forward. The Internal Revenue Service (IRS) impersonation call had previously been the top scam for five consecutive years before the SSA scam took its place in 2019. According to Collins, intense public awareness efforts helped to mitigate the issue and led to the IRS call falling from number one to number seven on last year’s most reported list.
The majority of SSA scam victims are senior citizens. Collins suspects that the $38 million reported only scratches the surface of what was actually lost last year.
“Many seniors who have been affected by this scam are either too embarrassed to report their loss or don’t even know who to turn to,” she said. “The emotional and psychological toll for those who have lost hard-earned life savings are beyond measure.”
Someone who understands the emotional toll of falling victim to a scam is Utah resident Machel Andersen. On Dec. 6, Andersen received a series of calls from what appeared to be the SSA. The fraudsters, convincingly posing as government employees, claimed that her Social Security number had been used to set up multiple bank accounts associated with a drug cartel. The scammers threatened to take legal action if she did not follow their orders. Andersen was intimidated into sending over $154,000 to an “offshore account” overseas.
SSA officials testified before the Committee on preventative measures being implemented. Commissioner Andrew Saul said that the Administration is working to make sure that Americans know how to identify a scam call and what measures to take upon receiving one. Those who visit the agency’s website are met with a large red banner that redirects them to an informational page and a link to the Office of the Inspector General’s (OIG) scam reporting form. Saul notes that the Administration is also using email, television, radio, print and social media to get the word out.
SSA Inspector General Gail Ennis added that the issue is broader than the Administration can handle on its own. Along with widespread public awareness, Ennis called for a coordinated, comprehensive approach that utilizes the power of the federal government.
“No matter how many investigations we conduct or how many scammers we put out of business, there will always be more around the corner and they will devise new ways of scamming innocent victims,” she said.
Ennis also cited the importance of working with telecommunications companies. If the SSA provides spoofing numbers to major carriers, they can block up to 99% of the spam calls from getting through. Some companies, however, have been complicit in the scams. Ennis said that the Department of Justice recently requested temporary restraining orders against five of these companies.
“These companies, known as gateway carriers, facilitate the delivery of millions of fraudulent robocalls every day from foreign call centers to the United States telephone system and ultimately to the personal phones of victims throughout the United States,” she said.
Nora Dowd Eisenhower, Executive Director of the Philadelphia Mayor’s Commission on Aging, presented ideas for reducing the vulnerability of older Americans to the SSA scam. She recommended that a Senior Scams Prevention Advisory Council be enacted in order to develop and share educational materials on how to spot a scam with employees of banks and other financial institutions. The Stop Senior Scams Act would investigate the ways that businesses could use their own platforms to alert employees of potential fraudulent behavior.
Casey expressed his support for the passing of the Stop Senior Scams Act. Additionally, he will join Collins in sending letters to the SSA, the OIG, the FTC and the Elder Justice Coordinating Committee asking for assistance.
Scammers have impaired the SSA’s ability to deliver its vital services in a timely manner, according to Saco, Maine Social Security Office Manager Justin Groshon. After receiving impersonation calls, large numbers of people call the office to verify the call’s authenticity.
“In some instances, this leads to increased call volumes of 400% to 1000%. The increased call volumes prevent our agency from being able to conduct legitimate business with those seeking our core services,” Groshon said.
The Committee hopes that releasing the 2020 Fraud Book will assist in regaining the public’s trust by effectively informing older Americans on the signs of over-the-phone schemes – which take an estimated $3 billion from innocent senior citizens every year. Educational efforts, the Committee emphasized, are ongoing.
“Educating people – particularly older Americans who are more likely to be the targets – is key to defeating this scam,” Collins said.
Advanced Reporting Times, Spring 2020 