What to do if you are a Victim of Social Security Fraud

What is Social Security Fraud?

Social Security Fraud refers to any deceptive or illegal activity in which individuals or organizations engage to fraudulently obtain or misuse Social Security benefits or information. Social Security fraud can take various forms, and it typically involves attempts to deceive the Social Security Administration (SSA) for financial gain or other advantages.

What is a Social Security Number?

A social security number is a unique 9-digit number used to identify an individual. Every U.S. citizen has a social security number.

In 1936, the Social Security Administration (SSA) began issuing Social Security numbers to U.S. citizens and residents. The initial purpose was to maintain accurate records of workers’ earnings and contributions to the Social Security system. Over time, the use of SSNs expanded to other government agencies and institutions. Today, there are ongoing discussions about the need for greater protection of SSNs and alternatives for identity verification due to an influx of social security fraud. 

Common Types of Social Security Fraud

• Identity Theft: This occurs when someone steals another person’s Social Security number and uses it to commit fraud. Identity thieves can use stolen Social Security numbers to open credit accounts, file false tax returns, or fraudulently claim Social Security benefits.
• False Benefit Claims: Individuals may make false claims for Social Security benefits, such as disability benefits or retirement benefits, by providing inaccurate or misleading information about their eligibility or financial situation.
• Impersonation: Scammers may impersonate SSA employees or other government officials to trick individuals into providing personal information or making payments for fake services.
• Bogus Disability Claims: Some individuals may feign disabilities or exaggerate their medical conditions to qualify for disability benefits fraudulently.
• Work Underreporting: Some individuals may work and earn income while also receiving Social Security benefits. Failing to report this work activity or income to the SSA is a form of fraud.
• Benefit Overpayments: Deliberately concealing changes in income, marital status, or other factors that affect benefit eligibility can result in overpayments, which are often considered fraud if not reported promptly.
• Fake Social Security Cards: The creation or use of counterfeit Social Security cards to obtain employment or financial benefits is a form of fraud.
• Misuse of Social Security Numbers: Misusing someone else’s Social Security number for any illegal activity, such as identity theft or fraudulent financial transactions, is considered fraud.

We know we need our Social Security Numbers to open financial accounts, use medical services, and other important activities. Cybersecurity experts believe that every Social Security Number has been leaked to the dark web at least once (Forbes)? Yikes! 

What is the Dark Web?

The dark web is a part of the internet that is intentionally hidden and not accessible through traditional search engines or web browsers. It is a subset of the deep web, which includes all web content not indexed by search engines. What distinguishes the dark web from the rest of the deep web is its use of specific software, configurations, and encryption tools to make websites and online services intentionally inaccessible to standard web browsers.

Risks Associated with Social Security Number

People on the dark web who obtain your Social Security number can potentially engage in various illegal activities and identity theft schemes. Here are some of the potential risks and actions they might take with your Social Security number:

Identity Theft: With your Social Security number, criminals can assume your identity and open credit card accounts, take out loans, apply for government benefits, and make purchases—all in your name.

Tax Fraud: Fraudsters may use your Social Security number to file false tax returns in your name, claiming refunds that don’t belong to them and potentially causing tax complications for you.

Access to Financial Accounts: If your Social Security number is linked to your bank or investment accounts, identity thieves might attempt to access and drain your accounts.

Medical Identity Theft: Criminals could use your Social Security number to obtain medical services and prescription drugs or file false insurance claims under your identity, potentially affecting your medical records and insurance premiums.

Employment Fraud: Fraudsters may use your Social Security number to gain employment, which can lead to discrepancies in your work history and potential tax issues if their earnings are reported under your Social Security number.

Criminal Activity: In some cases, individuals with stolen Social Security numbers may engage in illegal activities, such as committing crimes under a false identity, which can lead to legal troubles for the victim.

Creation of Fake IDs: People often use Social Security numbers to create fake identification documents for illicit purposes.

If your Social Security Number has been leaked on the dark web, here’s what you can do:

If your SSN appears on the Dark Web, removing it is nearly impossible. The best thing to do is stay informed and monitor actions taken with the number. Here are the steps you should take if you suspect your SSN is on the dark web:

Confirm the Breach:

• First, confirm the accuracy of the information. Sometimes, people make false claims about data on the dark web.
• Check your personal information for compromises using reputable online services. Check your email address on haveibeenpwned.com or use a dark web scanner.  

Notify Credit Bureaus:

• Contact the three major credit bureaus in the United States—Equifax, Experian, and TransUnion—and request a fraud alert or credit freeze on your credit reports. This prevents others from opening unauthorized accounts in your name.
• Equifax: 1-800-349-9960
• Experian: 1-888-397-3742
• TransUnion: 1-888-909-8872

Change Passwords:

• Change the passwords for your online accounts, especially those related to financial institutions and email.
• Ensure that you use strong, unique passwords for each account.
• Consider using a password manager to generate and store complex passwords securely.

Monitor Financial Accounts:

• Regularly monitor your bank, credit card, and other financial accounts for any suspicious activity or unauthorized transactions.
• Report any unauthorized transactions to your financial institutions immediately.

File a Complaint with the FTC:

• Report the incident to the Federal Trade Commission (FTC) through their website at identitytheft.gov. This helps the FTC track identity theft cases and provides you with resources for recovery.

Update Your Personal Information:

• Inform your employer, financial institutions, and any other organizations that may have your SSN about the potential compromise.
• Follow their guidance on updating your personal information and securing your accounts.

Review Your Credit Reports:

• Regularly review your credit reports from the major credit bureaus to check for any unauthorized accounts or suspicious activity.

Can you change your SSN?

Generally, you don’t change your Social Security numbers easily, and it happens rarely. The Social Security Administration (SSA) only considers changing an SSN under specific circumstances, such as when you can demonstrate that you are a victim of severe identity theft or if you are experiencing ongoing harassment or life-threatening situations because of your current SSN.

Examples of Specific Circumstances

Victim of Identity Theft: Provide detailed identity theft accounts, law enforcement reports, and SSN misuse evidence.

Extreme Harassment or Danger: If your SSN threatens your safety, the Social Security Administration may change it. You will need to provide compelling evidence of the danger you are facing.

Religious or Personal Reasons: Authorities grant new SSNs mainly for identity theft or safety concerns. Desires for a fresh start or credit issues aren’t valid reasons for a new SSN.

Final Thoughts

Changing your SSN is complex, lengthy, and doesn’t erase the old number’s history. Getting a new SSN requires updating records, accounts, and government documents.

For a new SSN, contact your local Social Security office with valid reasons. They can provide guidance on the specific requirements and documentation needed for a possible SSN change.

Anyone can fall victim to Social Security fraud. Therefore, it is vital to be proactive and informed to prevent or detect it. Know the red flags and maintain strong privacy habits to protect your financial and personal data. Ultimately, prevention is always better than cure, so don’t hesitate to take action and be a savvy Social Security beneficiary!

Categorised in: Identity Theft

This post was written by Adrian Yang