The Federal Trade Commission has been overwhelmed with reports of Coronavirus-related frauds. As of the beginning of April, consumers have been conned out of $8.39 million in total with $574 as the median reported loss. These scams include everything from fake charities to travel cancellation and refund scams. And now, social security recipients are being targeted in this recent COVID-19 con.
In this scam, con artists impersonate the US Social Security Administration. Since SSA offices were, in fact, closed in mid-March, this lends to the confusion over whether or not their provided services changed as well during this time. Instead of contacting the target by phone or email, they use snail mail. That gives this particular con an added layer of disguise.
In the letter, the recipient is notified that, due to COVID-19 related issues, their payments will be suspended. To reinstate payment, they are either asked to provide personal identifying information, or to make a payment via gift card. The demand of this con varies depending on whether the goal is identity theft, or financial theft.
The Social Security Administration has not suspended social security payments due to the COVID-19 crisis. Furthermore, the SSA will never ask recipients to make payments via gift card – or cash or wire transfer for that matter. They will not threaten suspension of payment or legal action unless the recipient pays a fine, ever.
The key to preventing yourself and your loved ones from falling victim to a con is to understand the organization the scammer is trying to impersonate well enough to identify the hoax. With $1200 stimulus checks and direct deposits arriving at a staggered pace, this will surely open the door to another wave of COVID cons to steal your identity and steal your money.
Remember: the IRS will never contact you for personal information. Your bank will never contact you for personal information. If you do not have direct deposit, you will get a check – do not let someone set up your bank account for you. Do not click on any links or give any personal information if you receive a text or email about your stimulus payment.
Information is armor. Stay safe, especially in uncertain times.