Social Security retirement accounts are being sold online – What you need to know

Yahoo

24-03-2025

An identity theft researcher at Georgia State University has found Social Security retirement accounts for sale online.
'They take over the SSA accounts. Then they change the account details on the Social Security Administration website, and then they funnel the payments,' said GSU Professor David Maimon.
Maimon showed Channel 2 consumer investigator Justin Gray a video an identity thief posted bragging about his access to a retiree's account.
'You can see the name, date and the balance,' Maimon said. 'The whole point of the scam is to try to take over there those individuals Social Security payments.'
The Trump Administration said new changes they are making this month to require more in-person identity verification are designed to prevent just this type of fraud.
'Americans deserve to have their Social Security records protected with the utmost integrity and vigilance,' said Lee Dudek, Acting Commissioner of Social Security. 'For far too long, the agency has used antiquated methods for proving identity. Social Security can better protect Americans while expediting service.'
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Under the new SSA policy being rolled out over the next 2 weeks, SSA beneficiaries will no longer be able to verify their identity by telephone.
People looking to claim benefits or change direct deposit who cannot use their personal 'My Social Security' account, which requires online identity proofing, will then need to visit a local Social Security office to prove their identity in person.
Former Social Security Commissioner Martin O'Malley counters that cuts in staff by the new SSA leadership will hurt not help protect from fraud.
SSA plans to cut 7,000 jobs even though its current staffing is already at a 50-year low.
'In one day, on one Friday, the entire leadership of the Cyber Security office left. What the public will see is longer and longer and longer and longer waiting times for everything,' O'Malley said.
Maimon told Gray that his team started seeing an increase in the SSA accounts for sale before the change in administration, and it has continued after.
'Usually, we see things rising and falling and because of the absence of control, criminals and fraudsters, thrive in times of crisis and times of change,' Maimon said.
Another step SSA says they are in the process of taking to limit fraud is using the Treasury Department's Account Verification Service for any direct deposit changes.
The Treasury system is designed to verify the existence, status, and ownership of bank accounts before making payments, reducing the risk of improper or fraudulent payments.