The Social Security Administration (SSA) is set to introduce new identity proofing measures, both online and in-person, starting March 31. This initiative aims to address the rampant issue of fraudulent benefit claims and unauthorized direct deposit changes. The SSA plans to require individuals to visit local offices to verify their identities for new claims and changes to direct deposits.
The agency's decision comes in response to significant financial losses due to fraud. With over $100 million lost annually from direct deposit fraud, the SSA has been under pressure to tighten security. Between January 2013 and May 2018, fraudsters successfully redirected $33.5 million in benefits for nearly 21,000 beneficiaries. Additionally, the SSA intercepted unauthorized changes amounting to $23.9 million before checks were issued.
Acting Commissioner Lee Dudek, who has witnessed the impact of fraud firsthand, emphasized the importance of these changes.
"Many times it's their only source of income, and guys steal their information and redirect their check somewhere else," Lee Dudek stated.
In addition to the new proofing measures, the SSA will accelerate processing times for both online and in-person direct deposit change requests to just one business day. This improvement aims to further protect beneficiaries from the fraudulent redirection of checks.
However, the changes have sparked concern among advocacy groups. The American Association of Retired Persons (AARP) expressed apprehension over potential service disruptions.
"SSA needs to be transparent about its service changes and seek input from the older Americans who will be affected, because any delay in Social Security caused by this change can mean real economic hardship," Nancy LeaMond from AARP remarked.
The implementation may lead to increased foot traffic at Social Security offices nationwide, with an estimated rise of 75,000 to 85,000 more in-person visitors per week. This anticipated influx comes amid plans by the Department of Government Efficiency to close approximately 47 out of 1,230 SSA offices across the country.
The AARP has voiced concerns over "more headaches and longer wait times" for routine customer service needs due to these changes. They have urged the SSA to reconsider its decision.
"Comes as a total surprise but is on an impractical fast-track," Nancy LeaMond commented.
For those unable to use the online My Social Security account for identity proofing, visiting local offices will be mandatory. This requirement could strain the SSA's already challenged 800 number, known for long wait times.