Social Security Phishing Scam: The Scam That Won't Go Away

Let’s Play Pretend

Some scams die hard. And the Social Security Phishing Scam is a prime example of that. Even with the advent of better security methods, this scam still manages to circumvent the best tools available, and find the intended targets.

In 2006, some crafty scammers found a way to steal a person’s social security number: pretend to be the Social Security Administration and send an e-mail with a proposition the victim shouldn’t refuse. The Social Security phishing scam appeared to be authentic and informed the victims that “updates” are needed or they’ll face a suspension of Social Security services and benefits. What the victims got, instead, was their Social Security number taken, credit cards compromised and their identity stolen.

The phishing scam was exposed and the warnings of it were released to the public by government officials. It appeared that this latest scam had been thwarted. Then, in 2009, it returned with a vengeance. Years later, it hasn't gone away. It threatens the stability and recovery of individuals and companies who have been deeply affected by the recent recession.

So what is this scam and what can be done about it? For starters, knowing what phishing is can help many identify them. In addition, one needs to know how to spot the hucksters behind this damaging scam.

Phishing to Bait Someone

Phishing is the criminally fraudulent attempt to acquire sensitive information from a person by masquerading as a legitimate Internet entity. Often the goal of scammers is to collect vital information such as usernames, passwords, credit card details, and other personal identifications. Usually, phishing is done through emails or instant messaging.

The Social Security Administration issued a warning in 2006 when the scam first surfaced. They warned the public that a new phishing scam email would attempt to trick recipients into giving the scammers personal information on a fraudulent website.

How Scam Operated

The original scam worked when the bogus email was sent to the recipient with the subject line “Cost-of-Living for 2007 update.” It claimed that the recipients were required to update personal information or risk having their accounts suspended. The email also urged them to click onto a link in the mail in order to supply the information needed.

The website instructed the victim to register for a password, giving the allusion that it was a secure site.

According to the website, Hoax-Slayer, clicking onto the link opened a fake website designed to resemble the genuine Social Security website. The website, alone, looked the part and easily fooled many people despite their education or knowledge of Social Security Administration policies and websites.

The website instructed the victim to register for a password, giving the allusion that it was a secure site. Afterward, the site instructed the victim to provide information such as:

• a Social Security number,
• credit card numbers, and
• bank account data under the guise of being used for identification purposes.

As a result, scammers were able to pick up important information from this fake website and use it for their own means.

The Social Security Administration did its best to warn the public of this scam. In an official news release filed on November 7, 2006, Jo Anne Barnhart, Commissioner of Social Security, and Patrick O’Carroll, Jr., Inspector General of Social Security, told the public that the Social Security Administration or other government departments do not request personal information through unsolicited emails.

How it Adjusted to Warnings

Exposure helped to quell the scam. However, two years later, the phishing scam returned. This time, the stakes were very high. According to SC Media writer, Angela Moscaritolo, President Barack Obama’s American Recovery and Reinvestment Act was to affect approximately 55 million individuals who had Social Security, Supplemental Security Income (SSI), Railroad Retirement or veterans benefits.

They were to receive a one-time $250 economic recovery payment for the month of May. Beneficiaries of these payments were not the only ones to take notice.

Again, the Social Security Administration warned that scammers were using fraudulent emails and websites to lure their victims into the scam. And many of the scammers were targeting the stimulus checks.

The best advice to avoid such a scam is to be wary and know the website address or domain of the various government programs. Also, as the Social Security Administration and other government officials stressed they do not ask for personal information over unsolicited emails.

Not the First or the Last

This is not the first and only time scammers have impersonated a government agency. A fake Internal Revenue Service (IRS) email operated very much in the same fashion as the Social Security scam.

In 2008, phishing attacks went after people’s expectation for IRS refund checks during the President George W. Bush administration’s economic stimulus payment distribution.

Also, many of these sites mirror calls made by scammers claiming to be the IRS

Nearly 20 years later (as of this writing) the scams involving social security scams are still around. Although the emails are often caught by email services and placed in spam folders, some still get through.

In addition, many scammers have to turned to older tech such as threatening phone calls or texts. Often the phone calls can be traced to places that are either not located at the Social Security administration office in Washington. And on rare occasion, they can be traced to a foreign number (it should noted that many scammers will use a U.S. number and email address that are, in fact bogus and can reroute the calls to a foreign entity).

Also, many of these sites mirror calls made by scammers claiming to be the IRS. And, as usual, the number doesn’t come from its official site.

What is Matters?

Scammers are everywhere. And they will stop at nothing to phish you and get you hooked. They may use threats or even a fake claim that money is owed to you. One needs to know how the official system works in order to avoid the scammers. If not, one can easily be fooled and see their identity and wealth stolen.

Work Cited

1. Angela Moscaritolo: "Social Security Administration spoofed in phishing scam": SC Media (May, 2009)
2. Hoax-Slayer Staff: “Social Security Administration Phishing Scam”: Hoax-Slayer (2006).

3. Social Security Administration: "Protect Yourself from Scams": SSA.gov (2006)