The Social Security Administration (SSA) has rolled out “enhanced technology” to detect suspicious activity in telephone claims or banking changes. The new technology will strengthen identification verification, preventing fraud.
Fraudulent Phone Callers Stole Benefits
Previously, Social Security recipients could call the toll-free number to change their direct deposit bank information. But there’s a problem with using the phone. According to the SSA, approximately 40 percent of direct deposit fraud was due to someone calling the SSA to change banking information. And although SSA employees asked questions to verify identity, many thieves successfully stole people’s funds by diverting the benefits to other bank accounts or even Visa cards.ID Proofing Policies Originally Delayed
On March 18, 2025, the SSA announced that beginning March 31, 2025, people would no longer be able to verify their identity over the phone. And if the beneficiary could not properly verify their identity through SSA’s “my Social Security” online service, they would need to visit a field office. According to the SSA, this new policy affected 73,229,000 people who received Social Security benefits.But, there were complaints from recipients, congress, and advocates such as the AARP that there wasn’t an opportunity for the public to weigh in on the change.
What Is the Final Identity Proofing Policy
All applicants to Social Security can apply over the phone. This includes those who want to make banking changes. According to an April 14 SSA news release, the newest policy was due to updated technology.
Dudek said, “These updates improve our ability to detect and prevent fraud while providing more flexible options for people to access their benefits.”
The new technology identifies suspicious activity in telephone claims. It analyzes patterns and anomalies within a person’s account. Any irregularities detected will require the claimant to complete in-person identity proofing at a Social Security office. The claim will not be processed without identity verification.
Originally, SSA was going to prohibit new claims or bank changes from taking place over the phone.
Now, however, this new phone technology allows SSA to maintain security without denying claimants who may be unable to file online or visit an office in person.
How the SSA Plans to Implement New Policy
After the transition, the SSA will conduct an anti-fraud check on any claims submitted over the phone. If the new technology flags the claim as potential fraud, the applicant must then verify their identity in person to proceed.The SSA has implemented the Department of the Treasury’s Bureau of the Fiscal Service’s Account Verification Service (AVS). This provides instant bank verification services. The AVS proactively prevents fraud associated with direct deposit change requests.
SSA Employees Called Into Office
The SSA recently requested that all agency employees throughout the country work in the office five days a week. This requirement went beyond just the frontline employees.Social Security Benefits a Target
Social Security benefits are often a target of thieves. And diverting benefits from a recipient’s account to a fraudulent one has been going on for many years.The SSA is making an effort to stop the fraud by modernizing its phone system with enhanced technology. Using the new technology allows the agency to identify anomalies in the claimant’s account.
In addition, the use of the AVS will not only prevent fraudulent banking changes but also expedite processing. Overall, Social Security beneficiaries and new claimants will still have the convenience of phoning while still preventing fraud.
