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Published: Sunday, April 14, 2019 @ 11:05 PM
The Federal Trade Commission said there’s been a dramatic drop in the number of consumer reports about IRS impostor scams.
The bad news is that scammers have found a new way to try to exploit consumers by falsely claiming to be from the Social Security Administration.
The FTC has seen a dramatic increase in reports from consumers that fraudsters are calling to say their Social Security numbers are connected to a crime and their bank accounts will be frozen or seized.
People filed more than 76,000 reports about social security impostors in the past 12 months, with reported losses of $19 million, according to the FTC. About 36,000 reports and $6.7 million in reported losses are from the past two months alone.
Compare that to the $17 million in reported losses to IRS scams in 2016, the peak year.
In the social security scam callers direct people to “protect” their funds by withdrawing the money in their bank accounts and putting it on gift cards.
The scammers then ask for the gift card PIN numbers for “safekeeping.” The callers also try to get people to reveal their Social Security numbers by falsely claiming they have been suspended.
The Social Security Administration will not suspend your Social Security number, nor will it direct you to withdraw money from your bank account.
The FTC said just 3.4% of people who report the social security scam lost money.
“Most people we hear from are just worried because they believe a scammer has their Social Security number,” the FTC’s report says.
But when people do lose money, they lose a lot. The median individual reported loss last year was $1,500, four times higher than the median individual loss for all frauds.
All age groups are reporting this scam in high numbers, with older and younger adults filing loss reports at similar rates, according to the FTC.
The agency gives the following tips for avoiding impostor scams: