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The Social Security Office located in Alhambra, California, is addressing identity fraud by implementing new procedures that will necessitate an in-person visit for certain individuals seeking to make new benefit claims or alter their direct deposit information.
In an announcement made on Tuesday, the Social Security Administration (SSA) revealed plans to enhance its identity verification processes over the next two weeks. Those unable to use their online My Social Security account for identity verification will be required to visit their local SSA office.
This initiative comes with a commitment from the SSA to expedite the processing of both digital and in-person requests for direct deposit changes, aiming to reduce the typical processing time from a month to just one business day.
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The SSA’s latest measures aim to combat the rising issue of benefit check fraud. Acting commissioner Lee Dudek highlighted that he has seen the personal impact of this fraud while working in field offices, describing the distress experienced by victims as “heartbreaking.” He stated that many beneficiaries rely solely on these funds, which makes them particularly vulnerable to identity theft and fraud.
Dudek noted that the agency faces losses exceeding $100 million annually due to fraudulent direct deposit redirections. Between January 2013 and May 2018, investigations revealed that fraudsters redirected over $33.5 million in payments from nearly 21,000 beneficiaries by altering direct deposit details without authorization. The SSA successfully rectified unauthorized changes amounting to $23.9 million for nearly 20,000 individuals during that same period.
Overview of New Identity Verification Procedures
The SSA will transition away from traditional knowledge-based authentication, which often relies on personal details that may no longer be secure due to widespread data breaches. Dudek expressed that much of the information used for verification is readily available online, increasing the risk of identity fraud.
New online and in-person identity verification protocols will be implemented on March 31, following a two-week training period for SSA management and employees. Individuals unable to access online services can initiate their benefit claims by phone, but must verify their identity in person to complete the process.
“To streamline the claims process, individuals are encouraged to request in-person appointments for efficient service,” the SSA indicated in its March 18 announcement. “All visitors, with or without appointments, will be required to confirm their identities before proceeding with any transaction.”
For those needing to change their direct deposit information but unable to go online, options will include visiting a local office or scheduling an appointment for in-person assistance. This shift is expected to result in an increase of approximately 75,000 to 85,000 additional visitors each week at Social Security offices nationwide, according to an internal SSA memo.
‘Potential Challenges Ahead’
These changes coincide with reports from the Department of Government Efficiency, which plans to close around 47 Social Security offices nationwide, despite a current total of approximately 1,230 locations. Furthermore, the SSA’s main phone service has faced criticism over lengthy wait times.
The AARP, which advocates for the interests of older Americans, has expressed strong objections to the SSA’s decision, asserting that this shift will complicate routine customer service encounters and elongate wait times. Nancy LeaMond, Chief Advocacy and Engagement Officer at AARP, referred to the changes as unexpected and hastily implemented, stressing the importance of transparency and soliciting feedback from affected older populations.
Additionally, advocacy organizations have raised concerns regarding the challenges older, disabled, and rural beneficiaries may face in accessing the required in-person services.
In response to these concerns, acting commissioner Dudek indicated a willingness to engage with advocacy groups to explore solutions that better serve the public. “If these changes negatively impact the citizens we serve, we must take actions to enhance our services,” Dudek committed.
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