13 Social Security Scams That Could Cost You Thousands

Scammers are becoming increasingly sophisticated, and Social Security scams are hitting people hard. In 2024 alone, Americans lost over $12.5 billion to fraud, according to the Federal Trade Commission (FTC), and a big chunk of that involved Social Security. Whether you're being asked not to hang up or respond to a text, these scams can be tricky to spot, and many people don't realize it's a scam until it's too late.

So, what are some common requests that should send a red flag? Here are 13 phrases that should make you think twice about who is on the other end and ultimately avoid a costly money mistake.

Scammers often create dramatic scenarios to induce panic. However, no legitimate government agency would relay this information in such a way.

This tactic is meant to scare you into cooperating and handing over your personal information. If something sounds too crazy to be true, it's probably because it is.

Scammers rely on their targets not fully understanding what's going on. If you get off the phone or tell someone what's going on, this provides an opportunity for you to realize it's a scam.

Scammers do not want this. They may threaten legal action if you hang up, or they may tell you that sharing information can get you in trouble. Hang up the phone immediately if a caller uses these tactics.

If you're ever contacted regarding increasing your benefits, keep in mind that these payments aren't for sale. You can't merely increase them by paying a service charge.
The Social Security Administration (SSA) does not charge to adjust benefits. The payments are based on your work history. Scammers are simply trying to trick you into handing over your payment information.

Real help is free, and you can call the SSA if you have questions regarding your benefit amount.

Threats of criminal charges are another tactic used to intimidate you into making rash decisions. No government agency will call you to threaten legal action if you don't pay immediately. Criminal charges require due process.
If someone pressures you into immediate action with threats of arrest, it's a certainty that you're speaking to a scammer.

Text messaging has become a common form of communication, so scammers increasingly use it to contact victims. In reality, the SSA will never send you a text requesting you to contact an unknown number. If you receive a text, contact the SSA at a known number.

A call claiming to be from a "legal department" conveys a sense of authority. That's why scammers often use this tactic. In reality, there is no legal department that makes unsolicited calls from the SSA.

Again, any real issue will result in an official letter rather than a threatening phone call.

Scammers may claim that your Social Security account has been compromised and that your personal information is at risk. They will offer to move your funds to a "secure account." Such an account doesn't exist.

No government agency offers this service. Scammers are offering a false sense of security to make you reveal your financial data. Once you provide it, your money is gone.

Threats to seize your bank account are intended to make you make rash decisions. However, the SSA does not threaten seizures over the phone. You would be notified in writing of any legal issue affecting your bank accounts.

Legitimate agencies follow legal procedures. They can't just instantly seize your money after one phone call.

Scammers realize that technology is changing everything. More importantly, they know that their targets are aware of this, as well.

This is why they may claim that the SSA is offering new "smart" cards or updated options. They will request your personal information to "process" this change, but the SSA has no such program. Your card will never expire, and you'll never be contacted to "upgrade" it.

While scammers typically target victims electronically, many have opted for more traditional routes. As people have become more aware of online data theft, scam artists have begun mailing letters that appear to be from the SSA. They may offer an increase in benefits if you call a phone number.

Instead, look up the agency's real number online before calling.

Legitimate government organizations do not accept gift cards, cryptocurrency, or wire transfers. These methods are untraceable and irreversible, which is why scammers often use them.

Criminals will try to convince you that you need to make an immediate payment or face consequences. The SSA will never threaten legal action or demand immediate payment, particularly via untraditional methods.

Scammers often use alarmist language to scare people into divulging sensitive information. However, Social Security numbers are never "suspended." Also, the Social Security Administration will never call you out of the blue.

Any contact from the SSA will usually be initiated by you or via a mailed letter. Scammers are trying to scare you into taking quick action. They'll ask you to verify your information, and that's when they steal your data.

Scammers will claim your information was used in a crime to create shock and confusion. They want you to follow their instructions blindly, so they'll scare you and then offer a way to "clear your name."

They may ask for your Social Security number or bank account information, but no legitimate law enforcement agency operates in this manner.

In early 2025, over 600 Americans lost money to Social Security scams. With a fixed income, this is the last thing you need threatening your stress-free retirement. Fortunately, you don't have to become a statistic.

If something feels off, cease communication immediately and report it to the FTC. Even if they insist that they can prove they're legitimate, it's important to end your contact and investigate further. By recognizing these common Social Security scams, you'll be more prepared to safeguard yourself and your savings.