THE U.S. Social Security Administration (SSA) has announced major changes to its direct-deposit operations.
The agency is enacting countermeasures in response to widespread fraud.
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The SSA is changing the way people can update their direct deposit information.
On Wednesday, the agency announced that it will no longer process changes to bank information over the phone.
Other telephone services will remain unchanged.
This change marks a significant adjustment in how people will be able to access their own account information.
Previously, recipients could call SSA over the phone and request to have Social Security payments made to a different account.
Now, those changes can no longer be made over the phone.
The reason for the major switch is that around 40% of Social Security fraud happens over the phone.
Officials say the change will strengthen security and protect people from identity theft and fraud.
The change is substantial, however, as millions of Americans rely on Social Security as a source of income.
“Approximately 40 percent of Social Security direct deposit fraud is associated with someone calling SSA to change direct deposit bank information,” the agency said in a statement.
Before, scammers could call in pretending to be someone else, then change the victim’s bank information in order to steal their deposits.
Now, bank information can only be updated online or in person at an SSA office.
The change comes at a price for senior citizens – the primary users of phone-based account transaction services.
While online verification may be more convenient for some, older recipients and those who don’t have internet access or to an SSA field office may be impacted.
All other phone services, such as information help or checking claims, will remain as they are.
The direct-deposit change will be effective March 29.
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Meanwhile, the longer retirees wait to take SSA benefits, the higher monthly payments will be.
The SSA will continue to increase the monthly amount until recipients turn 70.
Therefore, experts recommend that 70 is the best age to begin taking Social Security.
