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Social Security Scams Are Surging

Social Security scams have intensified in the past two months, with 36,000 consumer complaints to the Federal Trade Commission (FTC) and reported losses of $6.7 million in these two months alone, eclipsing complaints from Internal Revenue Service (IRS) scams.

In total, 76,000 Social Security scam complaints have flooded the FTC with reported losses of $19 million in the past year.

According to the FTC, only 3.4 percent of those who report a Social Security scam say they have lost money; most are concerned that the scammer has their Social Security number, which could lead to identity theft.

However, when victims do lose money, it’s considerable. The median individual reported loss last year was $1,500, four times the median individual loss for all types of fraud. Both older and younger adults file loss reports at similar rates.

Amy Nofziger, director of fraud victim services for AARP’s Fraud Watch Network, says 94 percent of calls to the organization’s Helpline concern Social Security scams.

Scammers use robocalls to reach consumers by phone, requesting that they “press 1” to speak to a government “support representative” to help reactivate their Social Security number.

Or, in a caller ID spoofing scam, the telephone number 800-269-0271 flashes on the screen. It’s the Social Security Administration’s OIG (Office of the Inspector General) Fraud Hotline phone number being used to convince you to answer a call that is really from fraudsters.

SSA employees occasionally contact people by telephone for customer-service issues. If you have business pending with the SSA, for example, an employee may telephone you and request that you confirm personal information. Be cautious.

SSA employees will never threaten you to obtain information or promise benefits in exchange for information from you, according to an SSA spokesperson.

Generally, agency notifications are sent by postal mail or email, if you have created a “my Social Security” account online.

Contact SSA at 800-772-1213 to determine if the agency is, in fact, trying to reach you and why. Meanwhile, keep your Social Security number confidential.

The best approach to avoid scammers is not to answer calls from unknown contacts, experts say.

“That’s the approach you should continue to take,” says Andrew Cannarsa, a spokesman for the SSA OIG. “Just hang up and ignore these calls.”

If you received what you suspect is an SSA impostor phone call and you interacted with the caller, providing personal information or money, report that information to the SSA OIG online at If possible, provide the phone number the fraudster asked you to call, the information you offered, and the amount of money you provided to the caller.

If you suspect you might be a victim of identity theft because you confirmed or gave out your Social Security number to a fraudster, visit

AARP’s Fraud Watch Network can help you spot and avoid scams. Sign up for free “watchdog alerts," review our scam-tracking map, or call our toll-free fraud helpline at 877-908-3360 if you or a loved one suspect you’ve been a victim.

Harriet Edleson, AARP, April 19, 2019

5 Spending Habits That Will Harm Your Retirement Plans

“Like tossing up a coin.”

That’s from Michelle, a 51-year-old teacher from Portland, Oregon. Michelle is talking about whether she’ll have enough money for retirement. To her, the answer seems up to chance, as if she could make all the right financial moves and still be blindsided by expensive surprises.

She’s not wrong, says aging expert Ken Dychtwald, CEO of the research and consulting firm Age Wave.

In partnership with Bank of America, Dychtwald has conducted retirement research on over 50,000 individuals. His body of work points to five chief budgetary pitfalls — dangers confirmed by the day-to-day experience of smart financial advisers. Knowing where those surprises are lurking and how to preempt them when possible is both in your power and a smart move.

Here’s what to look out for:

Rises in the cost of living

Eggs are priced 131 percent higher today than they were in 1988. Houses cost 194 percent more. In other words, it’s not just college tuition and health care that take a beating from inflation. “I’m a reasonably well-educated, intelligent guy, and yet inflation is befuddling to me,” Dychtwald says. He’s not the only one.

We humans have trouble envisioning the needs of our future selves, and inflation makes it even harder to forecast our financial requirements. You can help yourself by signing up for cost-of-living adjustments where they exist (disability and long-term care insurance policies, for instance) and locking down costs that you can. Good example? A paid-off mortgage (or even a fixed rate mortgage) means your monthly housing cost will never rise.

Providing financial support for family members

One common threat to budgets is the desire to help children grow (and sometimes grandchildren) who are struggling financially. “Periodic gifts to kids to help with routine items such as child care or cellphone payments have a tendency to morph into ongoing and more significant expenses over time,” notes financial adviser Mark Eskin, of Stedmark Partners in Philadelphia. Dychtwald calls this practice being the “family bank.”

The role usually falls not to the family member with the most money but, rather, to the one who is most financially responsible. The burden is widespread: Six in 10 people age 50-plus are providing financial support to family members, according to Age Wave, at an average cost of $15,000 over five years. “We saw caregiving coming,” Dychtwald says. “We didn’t see this coming.”

Expensive daily activities

During your working years, you’re time-starved, but once you stop working, you may have enough time to do whatever you want. That can get boring. (Retirees watch, on average, 49 hours of TV a week, Dychtwald observes.) This freedom can get expensive, too, especially when your desire to keep up with others, and hang out with them, doesn’t end. “Having a group of close friends to enjoy retirement with is a wonderful blessing,” Eskin points out.

But he often sees retirees outspending their means because they don’t know — or fully appreciate — the extent of one another’s wealth. Being asked to serve on the board of a local nonprofit, for instance, is often a great use of time, but the organization may also want your continuing financial support. “Even doing good can be unexpectedly expensive,” Eskin cautions.

Paying for health care

Every year, Fidelity Investments publishes an estimate of the amount that a 65-year-old couple will need health care in retirement. The most recent number, $280,000, sounds ridiculous until you break it down; it translates into roughly 20 years (for men) and 25 years (for women) of Medicare premiums, copays and prescription costs, or about $5,000 to $6,000 per person per year.

While the cost of that health care shouldn’t be astounding, the impact of illness still is, Dychtwald says. Illness is “the No. 1 reason people wind up not working as long as they think,” he adds. What’s more, “most people are unbelievably surprised by the cost. They’re not secret numbers, but because they’re so unpleasant, we don’t consider them.”

Living longer

Finally, there’s longevity in and of itself. Though there have been many headlines about our longer life spans, Dychtwald says the extra years still come as a shock. In part that’s because we misunderstand the concept of an average life span.

When you read that the life expectancy of a 65-year-old woman is 87 and that of a 65-year-old man is 84, that means many people pass their gendered benchmarks and keep going. One in 4 pass 90; 1 in 10 pass 95. You get the idea. Which means that if and when you use a retirement calculator, you should plug in at least “95” when you’re asked how long you expect to live. Maybe “100.”

Jean Chatzky, AARP Journal, April 11, 2019


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