Social Security Administration to cut phone services, citing fraud risk

By Thérèse Boudreaux
The Center Square

Americans attempting to apply for or update their Social Security benefits will no longer be able to complete the claims process over the phone.

Beginning March 31, the Social Security Administration will require online or in-person identity proofing for claims made over the phone, although beneficiaries can still start the claims process using SSA telephone services.

The agency will also eliminate the ability for beneficiaries to change their banking information over the phone. Both these measures are meant to combat rising levels of wire fraud.

SSA acting commissioner Leland Dudek told the press Tuesday that he will “monitor the situation closely” as the changes take effect.

"If it is to the detriment of the citizens we serve then we'll take necessary actions. If that means backing out the policy then we'll back it out,” Dudek said. “But we need to see what the results are."

According to SSA’s website, about 40% of Social Security direct deposit fraud is committed through people calling the agency to change direct deposit bank information. The SSA says its current protocol of asking identifying questions via phone is “no longer enough” to prevent fraud.

Dudek also announced Tuesday that the agency will expedite the processing of all direct deposit change requests, whether made in-person or online, to one business day rather than the current 30 day window.

These fraud prevention and efficiency measures combined, Dudek said, will ensure the SSA “pays the right person the right amount at the right time.”

“Americans deserve to have their Social Security records protected with the utmost integrity and vigilance,” he stated. “For far too long, the agency has used antiquated methods for proving identity. Social Security can better protect Americans while expediting service.”

The changes follow a February announcement that the SSA is seeking to cut 7,000 of the agency’s 57,000 workers in an effort “to implement efficiencies and reduce costs.” Opponents say the cuts will disrupt the agency’s services and jeopardize Americans’ access to their Social Security benefits.