SCAMS. Action: Throw out the letter and contact Social Security directly by phone at or visit their website.

Transcription

1 SCAMS SOCIAL SECURITY SCAMS You use your Social Security number for your identity, to get a job, and to apply for Medicare and Social Security as you become older. Unfortunately though, there are a lot of Social Security scams. Here are some of the most common ones related to Social Security and how to bust their cover. 1. Don't Trust the Letterhead This is probably obvious, but just because a piece of paper says Social Security or has government symbols in its letterhead, that doesn't guarantee it's authentic. Every year consumer organizations get complaints of direct mailings that appear to be from the Social Security Administration but aren't. In one such scam, the letter offers to provide the consumer a service --like obtaining a Social Security number for a newborn, notifying Social Security of name changes for newly married persons, or obtaining personal earnings and benefit estimate statements -- for a fee. These services are actually already provided by the Social Security Administration -- free of charge. Sometimes these companies just want the fees (so you'd only lose money), but sometimes they try to steal your identity as well! Action: Throw out the letter and contact Social Security directly by phone at or visit their website Getting an Extra Social Security Check In another direct mail scam, one that targets seniors, the letter offers its recipient an extra Social Security check. All you have to do is send a filing fee. The letter will ask you for money, for your bank account information or for your Social Security number to help with the application. This is an attempt to steal your money, and usually your identity by

2 getting your personal information. The Social Security Administration does not ask you to send them your Social Security number to get a check because they already know it. People who get Social Security do receive legitimate mail from the Social Security administration when their benefits increase. Or they can get a statement on taxes paid and future benefits due. (Editor s Note: They also receive official mail from CMS, Centers for Medicare Services. CMS is a legally authorized agent for the Social Security Administration. CMS usually handles administrative functions for SSA.) Important: Be suspicious of any letter that asks for money or for you to send personal information back. Shred such letters or send them to the Social Security Administration for investigation. 3. A New and Better Social Security Card Likewise, consumers should be VERY wary of phone solicitations that ask for personal information for Social Security purposes. Last year a Pittsburgh paper reported on a scam in which seniors contacted by phone were told they were required to get a new Social Security card. The caller asked for Social Security and bank account numbers to help process their requests. "This is purely an attempt to obtain your Social Security number and other information for the purpose of stealing your identity," Pennsylvania State Attorney General Tom Corbett told the Pittsburgh Post-Gazette. If you get a call like this, hang up the phone. If you fall for the scam, immediately contact your bank and advise them of what has happened. You should also ask the three credit reporting bureaus to place a fraud alert or credit freeze on your account.

3 Those bureaus are: Equifax, Experian, Trans Union, The Tax Refund Scam In this scam, a Social Security recipient is told they can get help in preparing their tax return and promised they will get a refund. This may sound innocent enough -- many communities have legitimate programs like this where trained volunteers prepare taxes for low income or elderly individuals. But in this case the taxpayer gets fleeced. Here's what happens: The victim is told to get the last three year's worth of 1099 statements from Social Security. By law the Social Security Administration must provide the statements, even if they suspect a scam. Using the statements, the scam artist prepares three years worth of tax returns for a fee. He incorrectly reports these three years of Social Security benefits, claims the standard deduction, and creates a bogus refund amount. The taxpayer files the faulty return and sometimes receives her tax refund. But later the IRS discovers the error and the taxpayer is forced to pay the money back, along with interest and penalties. Meanwhile the tax preparer has skipped town with the $40 to $100 fee charged for their "service." The Social Security Administration is warning all taxpayers requesting their 1099 statements to look out for this faulty tax preparation scam. If you have any doubts, contact a second tax professional for advice.

4 In other consumer scam issues, here are some current ones to be aware of : PURE WATER PRESSURE The scam: In Garland, TX, a couple of swindlers posing as water company officials invite themselves into private homes to check out the water supply and fixtures. They tell victims they need to buy water purifiers, which the scammers, of course, just happen to have in stock, and then press for an instant purchase. The solution: Water company officials carry photo ID -- check it out carefully -- and use only official vehicles. If in doubt, phone the water company. And don't let people pressure you into making purchases with high pressure sales tactics. THE NOT GUILTY JUROR The scam: A new statewide warning in Utah this month of a familiar trick where individuals get calls telling them they failed to turn up for jury duty and asking for personal details so the court can cancel an arrest warrant. Meanwhile, in Winston County, MS, scammers claim they are calling from the courts merely to confirm personal details for possible future jury duty. The solution: Don't give personal details like credit card or Social Security numbers -- courts never seek them over the phone. If in doubt, contact the court directly. And report the incident to the police. HOOKED BY THE TEXT PHISHERS The scam: Instead of sending you a phishing , scammers send you a cell phone text message, supposedly from your bank, asking you to visit a website whose address looks genuine. It isn't, and once keyed in, takes you to a bogus site that asks for personal details so the bank can "unlock" or "verify" your account. This is currently making the rounds in Columbia, MO. Solution: As with all phishing s, never follow a link, even one you have to manually key in, that you don't know for sure is valid. And never provide confidential information

5 unless you know the site is secure -- with an "s" in the "https" part of the address line and/or a padlock icon in the message area of your browser. (Editor s note: Best advice--- Don t click on any information in a questionable .) CELL PHONE CAMERA SCAM A shopper chats on his/her cell phone near a store's cash register while you pay for a purchase...or he talks on a cell phone outside a restaurant window while, just inside, you use your credit card to pay for a meal. Though the bystander appears to be deeply engrossed in his conversation, he actually might be using the camera built into his cell phone to snap digital pictures of your name, your credit card number and the expiration date. Some cell phones now contain five megapixel cameras, with sharp enough resolution to snap a legible picture of a credit card even from several feet away. Self-defense: Be aware of people around you whenever your credit card is out of your wallet, particularly if someone nearby is holding a cell phone. Conceal your card under your hand, or at least turn the card over. CARD SWITCH You pay for a restaurant meal with your credit card. When the waiter returns, you sign the receipt and slip the card back into your wallet, same as always. But the next time you use the credit card, it is declined. When you examine the card, you realize that it is not your credit card, but rather a similar-looking card with someone else's name on it. Unscrupulous restaurant and retail employees occasionally carry a few old credit cards, perhaps ones stolen from previous customers that have been canceled by their owners. When a customer pays with a card that is similar in appearance, the scammer pockets the new card and substitutes the old one. If the victim fails to notice, the thief goes on a shopping spree.

6 Self-defense: Always double-check that the credit card returned to you really is your card. SKIMMERS Some high-tech scammers working in restaurants, gas stations and other establishments have small electronic boxes known as "skimmers" hidden near the cash register. Skimmers steal the information -- name, address, telephone number, credit limit, PIN -- encoded on credit cards when the cards are swiped through them. Unlike a conventional credit card scanner, a skimmer is not attached to a phone line or cash register and typically is concealed out of customers' view. Self-defense: Try not to let your card out of your sight. Of course, these aren t always possible, but when it is, pay close attention. That alone may make a scammer less likely to try anything. CREDIT CARD FRAUD "ASSISTANCE" You receive a phone call from someone who identifies himself as a Visa or MasterCard representative. He asks if you authorized a particular purchase (often electronics). You did not. The representative explains that someone has stolen your credit card number and is running up your bill. "Don't worry," the rep says, "I can help you cancel the card and have the fraudulent charges removed from your account." This caller does not really work for a credit card company, and your card number has not really been stolen -- yet. The caller is a con artist who will ask you to "confirm" your credit card number and perhaps the three-digit code on the back of the card while pretending to help you stop a fictitious thief. Self-defense: Never divulge your credit card number or the code on the back of your credit card to anyone who phones you, even if he/she claims that you must act fast to protect your account.

7 Hang up, phone your credit card company's toll-free number and ask a real credit card company rep to check for the fraudulent charge that the caller mentioned, as well as for any other suspicious activity. If there is any sign of trouble, cancel the card. Also, check your accounts regularly online for any fraudulent charges.