Social Security Fraud Laws

Social Security uses public funds in order to provide a degree of economic security for the public as a whole once they have retired or if they become disabled. In the United States, both employers and employees are required to pay social security taxes.

The money raised from these taxes provides benefits to those who have reached retirement age or are otherwise eligible to receive such funds. The system is intended to ensure that when everyone retires or becomes seriously ill, they will have some type of money to provide for their needs.

Throughout your working life, you will pay a certain percentage of your income to the government in social security taxes. Once you retire or become disabled, the government sends you monthly payments based on how much you paid in social security taxes while working. This is known as “work credits,” and you must have a certain number of work credits to get certain benefits. The number you are required to have varies on how long you’ve worked and how recently you’ve worked.

Social security income is typically thought of (and indeed is used as) as a retirement benefit. However, social security can also refer to a government program that provides financial support for people with disabilities. Such government assistance is referred to as Social Security Disability Insurance.

What are Some Examples of Social Security Fraud?

In general, fraud involves obtaining something valuable through willful misrepresentation. In terms of Social Security, fraud occurs when an individual misrepresents something or, in other ways, employs dishonest tactics to obtain Social Security benefits.

Examples of fraud include:

• False statements when claiming benefits
• Concealment of facts or events that affect eligibility
• Non-disclosure of important facts that affect eligibility
• Failure to notify the SSA of the death of a beneficiary and receiving their benefits after their death
• A representative payee that is not using benefits for themselves instead of for the person that they are supposed to be using the funds for
• Scamming individuals by impersonating an SSA employee
• Bribing an SSA employee
• Filing a claim under another individual’s social security number
• Purchasing or selling Social Security cards or Social Security Administration information

The most common type of Social Security fraud is one that many individuals are familiar with identity theft. Identity theft includes the theft or misuse of an individual’s Social Security number and other related information. For example, a common scam is for a scammer to call an individual over the phone and pose as a Social Security Administration employee and ask for their Social Security number (SSN). Then, they use that SSN for fraudulent purposes, such as to apply for benefits in that person’s name.

How Can I Prevent Social Security Fraud?

There are steps you can take to reduce your risk of becoming a victim of Social Security fraud. You should::

• Only provide your Social Security number when necessary and when you can trust the company or entity to whom you are providing it
• Pay special attention to your Social Security Personal Earnings and Benefits Estimate Statement (available on the SSA webpage)
• Check your credit report annually

There are circumstances (online shopping is one) where you may be unnecessarily asked to provide your SSN. It is acceptable for you to ask why your SSN is being requested. It is also an option to inquire whether or not there is an alternative means of providing identification other than the SSN. Many honest shopping websites only ask for the last four digits of your SSN. Unless there is a good reason for doing so, don’t provide your full SSN over the Internet.

Your Social Security Personal Earnings and Benefits Estimate Statement is automatically mailed to you three months before your birthday. You can also contact the Social Security Administration (SSA) for a free report. If the report appears to contain wrong information, immediately contact the SSA. It may indicate fraud.

Another way you can protect yourself from identity theft is to check your credit report. There are three major credit report companies – Equifax, TransUnion, and Experian. You can obtain one free credit report from each credit bureau each year.

You should ask for copies of all three (they sometimes differ) for any signs of identity theft. While Social Security benefit information may not be directly included on your credit report, credit reports are still a great place to start to ensure no fraudulent activity using your SSN.

Other steps you can take to prevent Social Security fraud include:

• Don’t carry your Social Security card with you
• Don’t say your SSN aloud in public
• Be aware of scams attempting to obtain your SSN, such as phone and email scams

If I am the Victim of Social Security Fraud, What Should I Do?

If you believe you may be the victim of Social Security fraud, you should immediately contact the SSA. You should always report any illegal use of your SSN or benefits. When you contact the SSA, you will be asked to provide the following:

• Your name
• Your SSN
• Your date of birth
• Your address
• Your telephone number

While most information you provide to the SSA will be kept confidential, the SSA may be required to share some of your information with the Federal Trade Commission (FTC) in identity theft cases. Your information, however, will only be used to combat identity theft and will not be distributed to any members of the public.

The SSA does not tolerate fraud. They investigate and prosecute individuals who commit fraud concerning their programs. The SSA’s Office of the Inspector General (OIG) investigates allegations of social security fraud. Cases may be referred to United States attorneys in the Department of Justice (such as the FTC) for prosecution of federal crimes or other state and local prosecutors for prosecution of local crimes.

What Other Steps Can I Take if My Identity Has Been Stolen?

There are steps you should immediately take if you believe your identity has been stolen or your SSN is being used fraudulently:

• You can place a fraud alert on your credit file. This means a creditor will be required to take extra steps to verify the identity of the company requesting credit information before proceeding with the transaction. You do not have to place an alert with all 3 of the credit bureaus – you only have to request a fraud alert at one credit reporting company, and it will automatically apply to the other two. A fraud alert can be used in conjunction with a credit freeze.
• You can place a credit freeze on your SSN. Credit reporting companies cannot release your information to a third party. It prevents a lender from issuing new credit based on your SSN. You must initiate a freeze with each of the 3 major reporting agencies, but this does not cost anything. Contact them by phone and follow up in writing to ensure you have evidence of your efforts to freeze your SSN.
• Consider a credit lock. This is similar to a credit freeze but usually includes a monthly fee. Additionally, federal and state laws regulate credit freezes, but a credit lock is a contract between the individual and the credit bureau. Because of this, a credit freeze is likely a better option.
• You should also report identity theft to the Federal Trade Commission (FTC) on their website at IdentityTheft.gov. Here, you can report identity theft, obtain a recovery plan, and obtain an identity theft report. You will be required to answer questions regarding your situation. You can use the website to create a personal recovery plan. The website will outline each recovery step, update your plan when necessary, track the progress, and even pre-fill out forms and letters. If you have any questions about the process, contact an attorney who will gladly assist you.
• You may also file a police report regarding identity theft. You will need your already-completed FTC identity theft report, a form of identification, and proof of identity theft. It is important to request a copy of the report once it is completed.

Do I Need an Attorney for Social Security Fraud Issues?

Yes, it is important to have an experienced Social Security attorney to help you with any Social Security fraud issues. An attorney who handles civil lawsuits involving fraud may be especially helpful. You may be able to recoup losses incurred due to identity theft.

An attorney can review your case, advise you of your rights, and help you decide the best course of action going forward. Identity theft may affect much more than just your Social Security income, so it is important to have help protecting your rights.