Social Security scams have become the most reported scam and resulted in $38 million in losses for Americans in 2019, Committee Chair Susan said Collins in a congressional hearing today. 

Scam complaints have risen by 995 percent from August 2018 to December 2019, and Collins said she suspects that there are more victims who have not reported themselves. 

“Many seniors who are affected by this scam are either too embarrassed to report their loss or don’t even know who to turn to,” Collins said. 

The scams usually begin with automated calls falsely claiming to be the Social Security Administration. When answered, callers will usually say that the receiver’s Social Security has been jeopardized and that the receiver must provide sensitive financial information and transfer thousands of dollars as quickly as possible.

 

The Special Committee on Aging have just released its 2020 fraud book and an additional poster which will be distributed in senior centers. The committee has also written letters to the Social Security Administration and other justice coordinating committees for help, according to Aging Committee ranking member Bob Casey. 

 

“No one from our government will ever make these types of threats,” Casey said. “Con artists and scammers should not be allowed to steal money from our loved ones, nor should they be allowed to steal our confidence in the government itself.”  

 

Citizens are now also wary of phone calls that they receive from actual Social Security employees fearing that it would be a scammer, according to Executive Committee member of the National Council of Social Security Management Association Justin Groshon.

 

The scams have also led to an increase of call volumes to Social Security offices by 400 to 1000 percent which lasted for almost 22 days in one Main office and prevented legitimate business to occur, according to Groshon.

 

SSA Commissioner Andrew Saul said that they were not doing enough about the issue at first, and that imposter scams are now “a national problem.”

 

“At first we were not doing enough to combat these scams – that was short sided,” Saul said. “This really snuck up on us.”

 

Investigative efforts of the SSA and the Department of Justice led to the filing of temporary restraining orders towards three of five telecommunications companies who facilitated the delivery of millions of scam calls, according to Inspector General of the SSA Gail Ennis. 

 

“I am disgusted that there is an Arizonan who is doing this,” Senator Martha McSally said referring to one of the companies who received the restraining order that was from Arizona.

 

These companies, known as “gateway carriers,” have been repeatedly notified that they should know customers are using them to conduct fraudulent calls and can help by preventing them from going through, Ennis said.

 

“They allowed at least hundreds of millions of scam calls into the U.S. telephone system and they earned a lot of money in the process,” Ennis said. “In essence, profiting off scammed victims.”

 

Ennis said she encourages Congress to impose a law that requires gateway carriers to terminate service to known scammers.

 

Machelle Andersen, Utah resident and wife of Representative Kyle Andersen, lost her and her husband’s life savings of $150 000 through one of the scam calls. Andersen said she was told her Social Security number had been used to register a car with blood all over it at a crime scene near the Mexican border, set up multiple bank accounts associated with a drug cartel, and that she had to transfer all of her money to a safe off-shore account to protect it. 

Andersen said the scammers proceeded to tell her to act normal and not tell anyone about the call since the incident was still under investigation.  

“The scammers had me so worked up,” Andersen said. “They told me I had to be convincing or I would be arrested.” 

Andersen said the scammers then told her to keep them on the phone when she transferred the money, and that they were watching her every move. A credit union clerk asked why she was transferring so much money abroad, but did not further question her when she said it was for electronics.

 

Retailers and financial institutions are the last step where fraud can be prevented, said Philadelphia Mayor’s Commission on Aging Executive Director Nora Dowd Eisenhower, and the Stop Senior Scams act works to help banks and wire transfer companies to train their employees to spot scams and stop them, ranking member Bob Casey said who proposed the bill.

 

The targeting of seniors in these scams could also be because of their isolation and vulnerability, Eisenhower said who also reported that 24 percent of older Philadelphians living alone see friends or relatives less than once a week.

 

“There is a special place in hell for people who are scamming our veterans and our seniors,” McSally said. 

 

Other bills are also working to introduce improving social security services to the Victims of Identity Theft Act. The bill will provide identity theft victims with a single point of contact within the Social Security Administration when a fraud is committed, Senator Krysten Siname said. 

 

“Rather than ask the victim to retell their traumatic story to multiple employees, this assigned individual will be their trusted navigator across different functions within social security to ensure they’re not fighting these battles alone,” Siname said. 

 

The proposal of the Social Security number to not be used as a form of identification should also be considered, Ennis said, along with trying to restore some of the funds that had been stolen.  

 

By: Molly Greenstone

Social Security impersonation calls were the no. 1 reported scam to the Senate Aging Committee’s fraud lines, according to Committee Chair Susan Collins. The calls resulted in scammers cheating Americans, mostly seniors, for $38 million in 2018 alone.

“Educating people, particularly older Americans who are more likely to be the targets, is key to defeating the scam,” Collins said. “If we can heighten public awareness we can prevent people from being victimized. But I don’t think we should underestimate the ruthlessness, creativity, and pressure tactics that are used by these criminals.”

During the hearing, a woman testified about her personal experience with a Social Security Scam. Machel Andersen said international criminals used the Social Security scam to steal over $150,000 from her and her husband.

“In hindsight, I realized that there were many signs I should have recognized indicating that I was being scammed, but the scammers had me so worked up they told me that I had to be convincing or I wound end up getting arrested,” Andersen said.

Andersen told her story from the beginning when the scammer convinced her that a Mexican drug cartel used her social security number to set up multiple bank accounts. A fake DEA agent sent Andersen arrest warrants until she cooperated and transferred $154,646 to Hong Kong.

“Maybe hearing my story will help protect some other family that would have a harder time recovering from something like this,” Andersen said. “Maybe my story will help these scammers stop once and for all.”

SSA Commissioner Andrew Saul and Inspector General Gail Ennis told members of the Committee that they have made combating cases like Machel Andersen’s a top priority.

“At first we were not doing enough to combat these scams. That was short-sighted,” Saul said. “The magnitude of this problem caught us off-guard. Americans trust our agency and our employees, and we cannot allow swindlers to erode that trust.”

Saul continued to say that educating Americans is the best way to tackle the problem. Anyone who goes to the Social Security Administration website will find a red banner with information on these scams.

The agency has also developed an online scam reporting form to help OIG get the information they need to investigate the scammers. “Since this form went live in mid-November OIG has already received over 100,000 written reports,” Saul said.

Saul emphasized that education is the key to solving this problem. The agency will be using email, television, radio, print, and social media to reach out to Social Security account holders.

“Last week we began rolling out emails to all 47 million Social Security account holders and we are working to add a scam awareness message to the outside of our envelopes which will reach millions of people,” Saul said.

Groshon, District Manager of the Saco Main Social Security Office, brought up that these scams have eroded citizen’s trust in federal employees.

“The increased call volumes prevent our agency from being able to conduct legitimate business from those seeking our core services,” said Groshon.

Senator Collins asked Groshon how people can distinguish legitimate calls from the Social Security office versus calls from scammers.

“We can ask certain questions about what office are you in, what phone number should I call, who else works in that office, or some other questions like that. Typically, if you ask enough questions they will start to stutter,” Groshon said.

When Collins questioned the SSA officials about the reaction of telecommunications companies, Inspector General Ennis said that major telecom carriers have been helpful with the SSA and other agencies.

Ennis said the Department of Justice has filed requests for two temporary restraining orders on telecommunications companies allegedly involved in the schemes.

“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,” Ennis said.

According to Ennis, these gateway carriers have allowed hundreds of millions of scam calls into the US telephone system and have earned money by profiting off of scam victims.

“I’m struck by the fact that these reports of scams with the SSA have displaced what was the most popular, most prevalent, scam in recent years which is IRS scamming,” Senator Josh Hawley said.

Senator Hawley continued to question Saul and Ennis on whether they have consulted with officials at the IRS to see what worked and did not work for them when combating scams in recent years.

“We’re the lucky ones, I do believe this is going to expand unless we can cut it off,” Saul answered.

Saul continued to credit other agencies for the efforts the SSA is taking to slow down the success rate of scammers.

“The scammers are very inventive and the minute something works for them they change, and we are playing catch up. What worked then may not work today,” Ennis said.

 

BY TENI ODUNTAN

WASHINGTON-The US Senate committee on Small Business and Entrepreneurship assembled on March 12th to discuss the recent COVID 19 pandemic that has left the country at a stand-still. The hearing was joined by Sen. Cardin (D-MD), Sen. Hawley (R-MO), Chair Kafoury, Sen. Jacky Rosen(D-NV), Chairman Kafoury (D-OR) as well and other politicians and on-lookers. he committee’s chairman, Sen. Marco Rubio (R-FL), commenced the hearing by welcoming the attendees and reassured them that they have began conversations on the coronavirus pandemic in the senate as well as in the white house. He also discussed the main premise of the hearing, which was how the virus will affect small businesses and its personnel as well as ways to help them.  He discussed his previous correspondence with the House Small Business Committee on what relief to small businesses should look like. Rubio also discussed how the committee can help and encouraged the panelists to present their ideas on possible solutions. Rubio was able to reassure the committee of allocations promised by the president, that will be provided through local banks.  

  
“We’re going to have to allow small businesses to use the funds they have borrowed (from the bank) to make payroll, to provide paid sick leave for employees that are hurt or employees that are sick or employees that frankly can’t come to work.”

Marco Rubio also addressed America’s dependency on China and how majority of our resources are produced in China. According to the census Bureau, China accounts for 88% of electric hand drill and saw imports, 87% of air conditioning machinery imports, 83% of hydraulic jacks and hoists, 72% for cell phones and its parts, 58% of forklifts, 51% of lithium ion batteries. This could mean a scarcity for American businesses during this Pandemic period as China has closed its borders in order to curb health risks. This hypothetically means that even if the pandemic were to end, the United states would suffer with a lack of resources until china decides to re-open its borders. This puts a strain on the supply chain of small businesses across the country.

Rubio indicated that the above scenario highlighted America’s over dependency on Chinese resources and the need to increase America’s self-sufficiency as it would improve America’s supply chain

‘First is there are the immediate consequence of not having the capacity to produce these essentials here at home, and small businesses are going to experience a great deal of economic pain as a result of supply chain disruptions.”

According to the senator, this gap in the supply chain will be felt in all sectors, specifically the pharmaceutical industry. With the lack of new chemical ingredients and medical equipment coming to America, the country will be left highly vulnerable in this pandemic period. The floor was given to Tim Morrison, a senior fellow at the Hudson Institute, where he specializes in Asia-Pacific security missile defense, nuclear deterrent modernization and arms control who has spoken extensively on the matter of national security and medical aspects of the supply chain.

Morrison recalls America’s decision to stop self-production of Penicillin in 2004 and the repercussions of relying on China for medical commodities, which include unsterilized surgical gowns as well as numerous instances of faulty drugs. According to Morrison, these instances indicate that American is at the mercy of China and left without a backup plan.

   “What if the Chinese Communist Party decides to retaliate to these sovereign decisions by cutting off the shipment of medicines to the United States? Do you think it can’t happen? Ask the Japanese who lost access to rare earth elements from the People’s Republic of China in 2010 over a territorial dispute.”

Morrison proposed that the government should reroute their funds to support American producers and small businesses instead of combatting China for its position on the world stage as a top producer.

The floor was then given to Ms. Wynne Briscoe, acting directory for the Small Business Development Center in the southern Maryland region, who offered suggestions to the committee in order to provide more opportunities for small business in this time of uncertainty.

Briscoe posed the question of how the supply chain will affect American small businesses after the Epidemic is over, and what opportunities the government are giving small businesses, in order to fill up the gaps in the supply chain.

Briscoe identifies the current medical climate as an opportunity to rearrange the economy to fit small businesses and increase domestic manufacturing in order to reduce the US’s reliance on China.

“I’m recommending that you(congress) direct the Small Business Administration produce a nationwide list of companies. Let them self-identify of their supply chain concerns, those that have current supply chain concerns and those that forecast in the future of having supply chain concerns. From there it would be a self-identified list of Made-in-America products and services.”

Nevada Senator, Jacky Rosen, presented her concerns on small businesses in Nevada and the manner in which COVID 19 will affect their income.   

 “99% of businesses in Nevada are small businesses in support of, especially in the Southern Nevada area, in support those large businesses,” Said Rosen “They provide over 40% of the private jobs in our state.”

Rosen questioned how these small businesses should adapt to the new climate. Dr. Gerald Anderson responded by urging the government to give small business owners grants due to the slow-down in business traffic.

In conclusion, the panelists as well as the Senators agreed that the Corona virus has been detrimental to small businesses as well as the need to re-evaluate America’s trade relationship with China.

By: Matt Sacco

Washington – Social security impersonation scams were the most common type of scams targeting American Seniors in 2019. The Senate Aging Committee’s annual Fraud Book for 2020 ranked this scam as the most common, just surpassing the Internal Revenue Service (IRS) impersonation scam which topped the list the previous year.

 

The IRS impersonation scam was the most common scam targeting older Americans for the past five years. Testifying before the committee, Andrew Saul, Commissioner of the Social Security Administration (SSA) attributed the decline in IRS scams to education and public awareness.

 

Saul said more work needs to be done still, “This is a national problem.”

Committee Chair Susan Collins (R-ME) , along with Ranking Member Bob Casey (D-PA) revealed at a hearing on Wednesday that Americans who fell victim to this particular Social Security scam lost $38 million dollars in just the last year.

A typical Social Security scam usually involves an individual impersonating somebody from the Social Security Administration (SSA), or a government official who claims your Social Security has been compromised. The caller then uses this false identity to intimidate and take the victim’s money, identity and personal information.

For less aware, older Americans, who may not be privy to these kinds of schemes, these scams can be anxiety inducing and embarrassing. Senator Collins said “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. The emotional and psychological toll for those who have lost hard-earned life savings are beyond measure.”

Machel Anderson overcame these feelings to testify before the Senate Aging Committee to share her experience of how a team of fraudsters ran off with $154,000 of her savings after a caller claimed to be a member of the Social Security Administration and a subsequent DEA agent.

Within just a week, much of the Utah native’s savings were wiped away.

“This man told me that my family was in danger, that my social security number was being used  by a very powerful drug cartel and that they would be watching my every move.”

Anderson attributed her falling for this scam by being intimidated of the consequences if she did not follow the scammers orders. The fraudster claimed that she would be arrested if she did not wire a lump sum of cash to an offshore account. The situation was so real for Machel that she never even thought twice about what she was doing.

When asked whether she thought at any point she was being scammed, Anderson said, “My friend did, he said, Machel are you sure you aren’t being scammed, and I said I’m sure I’m not, I’m not being scammed.”

Members of the committee, and the expert witnesses testifying agreed that education and public awareness is the right path forward to combat this problem.

Commissioner Andrew Saul’s administration has been working hard to raise awareness about this scam and the many others alike, through messaging in television, radio, and social media. Additionally, anyone who has fallen victim to, or received a call from these scammers can fill out a form on the agency’s website so the administration has a fuller record.

Members of the Senate Aging Committee have released their annual fraud book each year to help spread the word about these issues.

Senator Collins among other committee members and witnesses additionally agreed that public awareness and education need to be adaptive and responsive. Collins said, “If we can heighten public awareness we can prevent people from being victimized. But I don’t think we should underestimate the ruthlessness creativity and pressure tactics that are used by these criminals.”

While public awareness and education may mitigate the problem, it does not offer a very viable solution to fixing the overall problem. Each time the public becomes aware of a particular scam, another will eventually pop up.

Testifying alongside Commissioner Saul, SSA Inspector General Gail Ennis said, “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.”

Ennis offered the idea of the federal government working directly with telecommunications companies to eliminate these spoofed calls. Most of these scams originate from outside the US, yet are still able to connect to American telecom servers and facilitate these scams. With federal intervention telephone companies you reduce a majority of these calls.

Committee Chair Collins gave some finishing remarks and said, “combating these scams is going to take a coordinated, all hands on deck effort and that is what we are committed to doing.”

The Social Security Administration along with the Senate Special Committee on Aging will further education efforts and develop bills to stop Social Security impersonation scams as it becomes the most reported scam to the committee in 2019 and reduces trust in government officials, according to a Congressional hearing today. 

 

The scam calls have resulted in $38 million of losses to Americans in 2019 alone, which Committee Chair Susan Collins suspects is “just the tip of the iceberg.”

 

“Many seniors who are affected by this scam are either too embarrassed to report their loss or don’t even know who to turn to,” said Collins. 

 

The scams usually begin with unsolicited robocalls with numbers falsely claiming to be the Social Security Administration. When answered, callers will usually say that the receiver’s Social Security has been compromised and that the receiver must provide sensitive financial information and transfer thousands of dollars as quickly as possible, said Collins.

 

The Special Committee on Aging have just released its 2020 fraud book and an additional poster which will be distributed in senior centers. The committee has also written letters to the Social Security Administration and other justice coordinating committees for help, according to Aging Committee ranking member Bob Casey. 

 

“No one from our government will ever make these types of threats,” said Casey. “Con artists and scammers should not be allowed to steal money from our loved ones, nor should they be allowed to steal our confidence in the government itself.”

 

Citizens are now also wary of phone calls that they receive from actual Social Security employees fearing that it would be a scammer, according to Executive Committee member of the National Council of Social Security Management Association Justin Groshon.

 

The scams have also led to an increase of call volumes to Social Security offices by 400 to 1000 percent which lasted for almost 22 days in one Main office and prevented legitimate business to occur, according to Groshon.

 

SSA Commissioner Andrew Saul said that they were not doing enough about the issue at first, and that imposter scams are now “a national problem.”

 

“At first we were not doing enough to combat these scams – that was short sided,” said Saul. “This really snuck up on us.”

 

Investigative efforts of the SSA and the Department of Justice led to the filing of temporary restraining orders towards three of five telecommunications companies who facilitated the delivery of millions of scam calls, according to Inspector General of the SSA Gail Ennis. 

 

“I am disgusted that there is an Arizonan who is doing this,” said Senator Martha McSally referring to one of the companies who received the restraining order that was from Arizona.

 

These companies, known as “gateway carriers,” have been repeatedly notified that they should know customers are using them to conduct fraudulent calls and can help by preventing them from going through, said Ennis.

 

“They allowed at least hundreds of millions of scam calls into the U.S. telephone system and they earned a lot of money in the process,” said Ennis. “In essence, profiting off scammed victims.”

 

Ennis said she encourages Congress to impose a law that requires gateway carriers to terminate service to known scammers.

 

Machelle Andersen, Utah resident and wife of Representative Kyle Andersen, lost her and her husband’s life savings of $150 000 through one of the scam calls. Andersen said she was told her Social Security number had been used to register a car with blood all over it at a crime scene near the Mexican border, set up multiple bank accounts associated with a drug cartel, and that she had to transfer all of her money to a safe off-shore account to protect it. 

 

Andersen said the scammers proceeded to tell her to act normal and not tell anyone about the call since the incident was still under investigation. 

 

“The scammers had me so worked up,” said Andersen. “They told me I had to be convincing or I would be arrested.”

 

Andersen said the scammers then told her to keep them on the phone when she transferred the money, and that they were watching her every move. A credit union clerk asked why she was transferring so much money abroad, but did not further question her when she said it was for electronics.

 

Retailers and financial institutions are the last step where fraud can be prevented, said Philadelphia Mayor’s Commission on Aging Executive Director Nora Dowd Eisenhower, and the Stop Senior Scams act works to help banks and wire transfer companies to train their employees to spot scams and stop them, said ranking member Bob Casey who proposed the bill.

 

The targeting of seniors in these scams could also be because of their isolation and vulnerability, said Eisenhower who also reported that 24 percent of older Philadelphians living alone see friends or relatives less than once a week.

 

“There is a special place in hell for people who are scamming our veterans and our seniors,” said McSally.

 

Other bills are also working to introduce improving social security services to the Victims of Identity Theft Act. The bill will provide identity theft victims with a single point of contact within the Social Security Administration when a fraud is committed, said Senator Krysten Siname. 

 

“Rather than ask the victim to retell their traumatic story to multiple employees, this assigned individual will be their trusted navigator across different functions within social security to ensure they’re not fighting these battles alone,” said Siname. 

 

The proposal of the Social Security number to not be used as a form of identification should also be considered, said Ennis, along with trying to restore some of the funds that had been stolen. 

 

 

 

By Terrence Kane

WASHINGTON – Officials from the Social Security Administration testified before the Senate on efforts to combat the growing problem of fraudulent call scams impersonating SSA employees.

The hearing focused on the main efforts to combat Social Security impersonation scams that are an emerging and persistent issue. These efforts include educating the public to identify fraudulent calls and pursuing legal action against the telecom companies that support them.

The Senate Select Committee on Aging chose this topic as the first for a hearing in 2020, highlighting its rapidly growing importance. Over the past three years, Social Security scams have become one of the most prevalent issues facing the American public, particularly elderly and disabled Americans.

“Reports of the SSA scam barely registered as recently as 2017,” Chairwoman Susan Collins (R-ME) said in her opening statement, “but then it began to take off, cracking the top ten scams reported to our committee’s fraud hotline in 2018 and becoming the number one reported scam last year.”

The scams have resulted in the loss of $38 million dollars over the course of 2019 alone, according to Collins. However, Collins believe this is not representative of the whole story and may only be the “tip of the iceberg”.

The scams typically consist of a fraudster assuming the identity of an SSA employee and contacting Americans with claims that their social security numbers have been compromised. The fraudsters often rely on intense language and detailed stories to frighten their victims into compliance with the aim of stealing their life saving or their identity.

The hearing featured testimony from an assortment of experts in the field of consumer protection, as well as emotional testimony from one of victim of a scams. Machel Andersen of Utah recounted the story of how she was robbed of over $150,000 dollars by a scammer who intimidated her with threats of legal action against her and her family.

“Then he told me some bad news. A car registered in my name was found with blood all over it at a crime scene near the Mexican border,” Andresen said detailing the story a fraudster used against her, “Worse, he said that my social security number had been used to set up multiple bank accounts associated with a drug cartel.”

Fraudsters, like those that targeted Machel Andersen, are often able to make their calls appear as if they are coming from Social Security. Scam calls are aided in expanding their reach by telecom companies that are based across the U.S.

These telecom companies, often referred to as “gateway carriers”, are responsible for allowing nearly a billion calls into the U.S. phone system. These carriers intentionally ignore evidence of fraudulent behavior, such as high caller volume paired with short call times.

By ignoring these potential warning signs these companies facilitate calls that could be eliminated to reduce the number of fraudulent calls. Interfering to stop these calls would likely affect the company’s bottom line.

“They allowed at least hundreds of millions of scam calls into the US telephone system and they’ve earned a lot of money in the process,” said Gail Ennis, the Inspector General for the Social Security Administration, “In essence, profiting off of scam victims.”

Senators on both sides of the aisle expressed significant animosity towards the gateway carriers and the people that run them. Sen. Martha McSally (R-AZ) said that “there is a special place in hell for people who are scamming our veterans and our seniors”, while Ranking Member Bob Casey (D-PA) expressed his desire for “tracking these people down, prosecuting them, and throwing them in jail.”

Seeing tangible results in legal action against the people and companies who perpetrate the scams is not far off. In early January the Department of Justice, in conjunction with the Inspector General’s Office of SSA, brought a series of civil complaints against five companies and three individuals involved in the scams.

The cases, filed in the Eastern District of New York, are civil suits that aim to equitable relief from the companies and their owners. This relief includes injunctions, restraining orders, and possibly fines.

The primary goal of these suits is to penalize the companies that perpetrate these frauds against the American people. Beyond punishing and halt the fraudulent companies, these suits are also meant to “deter others from filling the void,” according to Ennis.

The desire to prevent new fraudulent companies from popping up comes from the long history of impersonation scams in the U.S. Prior to the dramatic rise of SSA scams, fraudsters had used the same playbook on another federal agency: the Internal Revenue Service.

The fact that fraud companies were able to so easily transfer from one agency to another is indicative of fraudsters ability to adapt in the face of adversity. This means that the efforts to combat them must not solely based on retribution, as Sen. Casey said, “because if we do that all day long then we won’t get to prevention.”

One of the key components of preventing these kinds of scams from occurring is educating on how to detect and report fraudulent calls. The SSA website home page features a prominent alert about the potential scams that links to a page with important information for customers.

The SSA also launched a new website dedicated entirely to reporting cases of fraudulent calls directly to the office of the inspector general. But one witness noted that this was just one small step in the larger battle against fraudsters.

Nora Dowd Eisenhower, the Executive Director of the Philadelphia Mayor’s Commission on Aging, said that broader education is necessary to help Americans prevent all types of scams, not just those impersonating Social Security.

“Today it’s social security, which is a terrible thing but next year it might be something else, and the following year something else again,” Eisenhower said, “So we need to have a mechanism in place to educate people about those scams as they are changing, faster than the fraudsters are changing them.”

Machel Andersen became one of the thousands of seniors who are a victim of a Social Security scam in the U.S. when she lost $150,000 of her life savings to scammers. 

Andersen transferred her money to off-shore accounts in Hong Kong after she was made to believe that her social security number was used in a case involving a Mexican drug cartel and that transferring the money was the only way to keep it secure. Andersen soon found out that this was a scam.

“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,” said Andersen.

Andersen presented her story to the Senate Aging Committee during their hearing on Wednesday to discuss the efforts currently in place to protect seniors from Social Security scams. The committee reported that Americans lost $38 million in losses from phone scammers in 2019, estimating that the real number is likely higher due to underreporting.

The Social Security Administration has been working to inform the public on this issue to prevent people from falling victim to these scams.

“We’ve rolled out, I think a pretty comprehensive program of educating our customers and our beneficiaries through the help of a lot of media, a lot of outside organizations, plus our own internal communications,” said Andrew Saul, commissioner of the Social Security Administration. 

Saul cites AARP and Walmart as organizations that have assisted with broadcasting information warning people of the potential scams. They have also created television and radio advertisements, as well as placed a red banner on their website with more information about the scammers.

The Social Security Administration also reported that they are taking legal action against telecommunication companies. Inspector General Gail Ennis reported that they have filed two civil complaints with the Department of Justice against five telecommunications companies and their owners.

According to Ennis, these telecommunication companies, also known as gateway carriers, are knowingly responsible for allowing robocalls from foreign call centers to reach the phones of millions of Americans every day.

“These gateway carriers were notified repeatedly they were passing said calls, but they allowed at least hundreds of millions of scam calls into the U.S. telephone system and they’ve earned a lot of money in the process,” said Ennis. “In essence, profiting off of scam victims.”

These social security scams aren’t only affecting the victims. According to Josh Gershon from the Waco, Maine Social Security Office, the number of calls that the office receives from people that believe they are being scammed has impacted their ability to do their primary work. 

“The increased call volumes prevent our agency from being able to conduct legitimate business from those seeking our core services. For one main office, this increased call volume lasted almost 22 days,” said Gershon.

Often, the scammers are able to make their phone number appear as the Social Security Office’s number. Gershon estimates that the volume of calls the office receives has increased by 400% to 1000% due to the multitude of people receiving scam calls.

Gershon also cited a problem that when people file an online claim about a fake call, they are skeptical of the legitimacy of the office when they call back to fulfill their claim.

“Those claims sometimes require us to follow up with them to just clarify some questions or answer that they provided,” said Gershon. “In many of those instances where we reach out to them by phone, they don’t believe that it is actually us calling even though they had just filed an application online the day before.”

Nora Dowd Eisenhower, executive director at the Philadelphia Mayor’s Commission on Aging, said that she believes that the primary way to stop this issue is to increase the public awareness campaign. 

Eisenhower cites the Consumer Protection Bureau’s guide, “Money Smart for Older Adults,” a research booklet created to prevent financial exploitation among seniors, as a tool being used to educate seniors. Eisenhower said that seniors are the prime target for these scams. 

“We need to have a mechanism in place to educate people about those scams as they are changing, faster than the fraudsters can change them,” said Eisenhower.

This has been an ongoing effort for members of the Senate Aging Committee. Ranking Member Sen. Bob Casey has proposed the Stop Senior Scams Act, which would establish a prevention advisory group dedicated to creating educational materials for retailers, financial-services companies, and wire-transfer companies.

“We know that con-artists and scammers should not be able to steal money from our loved ones, nor should they be able to steal our confidence in government itself,” Casey said.

The bill has passed the House and is awaiting a vote in the Senate. It will help implement preventative measures that will train workers to be able to stop these scams before they take place.

Sen. Susan Collins, chair of the Senate Aging Committee, trusts that the testimony from the Social Security Administration will bring to light the severity of the scams targeting seniors. Collins said that the combination of legislative, educational and law-enforcement efforts will help reduce these scams.

“My hope is that our hearing today will help heighten public awareness about this scam because the best way for us to prevent this same scam from ever again robbing seniors of their hard-earned savings is to prevent the scam from happening in the first place,” Collins said.

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. 

WASHINGTON, D.C. – In the 2021 fiscal year budget plan released on Feb. 10, President Trump proposed to cut a policy in place that protects state medical-marijuana programs from prosecution by the Justice Department. The proposal, which seeks to eliminate states’ rights regarding cannabis purchase and use, is raising concerns among medical-marijuana users, industry professionals, and advocacy groups around the country.

Division B, Subsection 531 of the Consolidated Appropriations Act of 2020 prohibits the Justice Department from using its funds to block states from implementing their respective laws regarding the “use, distribution, possession and cultivation” of cannabis. The provision has been renewed repeatedly by Congress since 2014 and grants states the freedom to make their own laws regarding both medical and recreational marijuana, despite the fact that the drug is still illegal on a federal level.

Marijuana is currently legal in 11 states and Washington, D.C. for adult recreational use, and for medical use in 33 states. Cannabinoids – a chemical component of cannabis – can be used to reduce anxiety, ease inflammation, and slow the growth of certain cancer cells. According to Marijuana Policy Project, over three million patients use the drug to relieve chronic pain and treat mental health conditions. If passed, the elimination of the protection rider could leave those patients and the medical dispensaries that serve them susceptible to federal prosecution regardless of a state’s cannabis laws.

In a statement issued last year on Dec. 20, Trump said, “My Administration will treat this provision consistent with the President’s constitutional responsibility to faithfully execute the laws of the United States.”

The National Organization for the Reform of Marijuana Laws (NORML) is a Washington, D.C.-based non-profit that advocates for the responsible adult use of marijuana. Justin Strekal, NORML Political Director, says he believes that Trump’s proposal is both a poor policy move and a hostile action against the millions of Americans who use the drug for health-related purposes.

“These [medical programs] now operating in a majority of states are serving over three million physician-qualified patients who suffer from a range of issues,” Strekal said in an interview.

“These are patients who, in consultation with their doctors, have decided on a personal healthcare treatment plan that includes the therapeutic use of cannabis. To deny a patient the certainty of their healthcare plan is downright cruel.”

The budget plan also aims to set aside an additional $5 million for the U.S. Food and Drug Administration (FDA) to advance the regulation of cannabis and cannabis derivatives, including cannabidiol products (CBD). This follows the Agriculture Improvement Act of 2018, which removed industrial hemp from the Controlled Substances Act and led to a boom in the CBD industry. The FDA intends to follow the industry with close scrutiny given that more research is necessary to confirm the compound’s medicinal benefits.

“The initiative will support regulatory activities, including developing policy, and continue to perform its existing regulatory responsibilities including review of product applications, inspections, enforcement, and targeted research,” the agency said in a summary.

The Office of National Drug Control Policy (ONDCP), which advises the president on drug-control issues, would face significant budget cuts under the proposed plan. Some of its funds would be transferred to the Drug Enforcement Administration (DEA) to “improve coordination of drug enforcement efforts among Federal, State, and local law enforcement agencies in the US.”

Additionally, the budget plan includes restrictions that would specifically prevent the District of Columbia from establishing a commercial marketplace where recreational cannabis could be bought and sold. Initiative 71, passed in 2014, legalized cannabis for medical and recreational use in D.C. Repeated opposition from Congress in the form of strict spending bills, however, has prevented D.C. from executing any regulatory framework for the sale of marijuana. This has resulted the practice of “gifting”, in which buyers purchase goods – like artwork, baked goods or a sticker – and receive marijuana as a “free gift”. The gray market that has emerged is Initiative 71-compliant but unregulated.

The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the United States. Morgan Fox, NCIA Media Relations Director, says that D.C.’s gray market is problematic. However, when it comes to the medical-marijuana market, the District is setting an example for other states to follow. When asked what makes D.C.’s medical program so successful, Fox cited the absence of a qualifying condition list, minority ownership, and operators that are “extremely good at what they do.” Additionally, the District allows out-of-state transactions, a policy that many other states do not abide by.

The 2021 budget proposal marks the third time the Trump administration has attempted to eliminate cannabis protections. The president’s 2017 and 2019 appropriations bills also disregarded the protection rider. These actions have been inconsistent with the stance he adopted during the 2016 presidential election, in which he supported leaving legalization decisions to the states. During a press briefing in Sept. 2019, he reiterated his support for state-based cannabis policies. However, in a recently leaked recording, the President claimed that he is unsure if legalization is a “good or bad thing” and believes that smoking marijuana makes users “lose IQ points.”

Congress is expected to override the president’s proposal given their history of support for the protection rider. Regardless, Trump’s contradictory stance is a concern to users and advocates, especially given the upcoming presidential election.

“Given the fact that two thirds of Americans want cannabis to be legal for adults, I think that it would be a tremendous political mistake for anyone with aspirations of higher office to promote continuing our failed prohibition policies,” Fox said in an interview. “Backing legalization is something that a person from any party can get behind and get some support points.”

By: Isabella Goodman

Washington, DC — The Potomac Art Therapy Association hosted a scholarship event on Saturday to recognize members of the organization while also providing updates on key legislature for the profession.

The Potomac Art Therapy Association, or PATA, is a regional branch of the American Art Therapy Association, an organization that aims to promote education about art therapy to the public, as well as serve as a community for those in the field of art therapy.PATA is volunteer-based, with most members working as full-time clinicians, or someone who works directly with patients, in some capacity.

The event was held on Saturday, Feb. 29, at Silver Branch Brewing Company in Silver Spring, Maryland, the only of the three states in the DMV that currently has licensure for art therapists. While several awards were given out, the event was also a space for members of the organization to connect and get updates on the status of art therapy licensure.

President Jane Woo thanked members of the community and provided updates on the PATA chapter while handing out awards.

“It’s a way for art therapists within the community to be connected with one another, whether that be through workshops, professional development, or networking,” Woo said in an interview. “Because art therapy is such a small field, it’s nice to be able to connect with other art therapists and try to advance the field.”

Woo has a master’s in art therapy from George Washington University. She currently works at the Children’s National Hospital as a part of Tracy’s Kids, an art-therapy organization that funds positions at different hospitals around the country. Woo specializes in art therapy for children undergoing treatment for cancer and blood disorders, so she works to help them process their emotions through art.

The first award, the Nancy Schoebel Scholarship Award, is given to a graduate student seeking an art therapy master’s degree.

This year’s winner was Claire Kalala, a graduate student at George Washington University. She’s currently an art therapist intern at the Kennedy Kreeger School, providing art therapy for individuals with autism and other developmental disabilities.

“As a new member, PATA has been super welcoming,” Kalala said in an interview. “They’re also very productive and doing a lot in terms of licensure for the community.”

The second award, the Distinguished Service Award, was given to Elizabeth Kim for exceptional service to the organization.

Kim currently works with DC public schools as a counselor and art therapist. She is a board-certified art therapist and licensed counselor and has received a master’s in art therapy from George Washington University. She currently serves as the vice president and does communicationsat PATA.

“I’m happy to spend time putting up postings and developing marketing materials, just so the community and newer students are able to have opportunities,” Kim said in an interview. “After long days at work and then needing to do things for PATA, it’s nice to be thanked by the community.”

Jordan Potash is a registered board-certified and licensed art therapist and a registered expressive-arts therapist. Potash was the recipient of the Distinguished Educator Award for service towards the education of art therapy students at George Washington University. Potash teaches a range of classes relating to art therapy and psychology.

Potash has had several roles within PATA and the American Art Therapy Association, but he currently serves as the licensure committee chair.

Potash oversees the legislative process of creating licensure for art therapists for the DMV area. Currently, Maryland has regulated art therapy licensing, but Washington and Virginia do not.

“We started this process five years ago, but it really took off this past April,” Potash said.

Before becoming licensure committee chair, Potash didn’t have any experience with the government, so he said getting the bill off the ground was challenging at first.

Washington Council Chairman Phil Mendelson introduced B23-0250, the Professional Art Therapist Licensure Amendment Act of 2019 last spring. Most recently, a committee report was filed.

“In the past 20 years, [art therapy] has become a lot more recognized and the evidence of that is in the number of states that are enacting licensure,” Potash said in an interview. “It means that art therapists get to work purely as art therapists and are recognized for the skills that we offer in mental health services.”

One member, Gioia Chilton, is a licensed art therapist in Maryland and has been with PATA for over 20 years.  

“It’s important that people aren’t wandering around getting therapy from people that aren’t qualified,” Chilton said. “We go through a whole masters program, we study, we do internships, so that we don’t end up harming people. That’s why we need licensure.”