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Social Security Number: a Key to Identity Fraud

admin — Sat, 26 Dec 2009 23:34:16 +0000

Mary Jean Kuda asked:

Social Security has been one of the country’s most successful programs. It aids people from financial uncertainty especially in their trying times.

The program provides several protections such as:

•    progressive benefit formula

•    comprehensive insurance benefits that include disability

•    survivors and retirement benefits

•    spouses’ benefits

•    a cost of living adjustment

•    coverage until death

These protections will be placed at risk if fraud related claims continue to spoil Social Security.

Identity theft using the Social Security numbers (SSNs) is one of the common Social Security frauds that have been weakening the program.

History on the Use of Social Security Numbers

SSNs were first issued in 1936. The federal government assured the public that the use of the numbers would be restricted to Social Security programs such as calculating retirement benefits.

Today, however, SSN has become the de facto general identifier.

Government agencies and private businesses use SSNs even for a wide range of non-Social Security purposes. These purposes include:

•    employee files

•    medical records

•    health insurance accounts

•    credit and banking accounts,

•    university ID cards

•    utility accounts

The use of SSNs as both an identifier and an authenticator makes these numbers highly desirable to fraudulent acts, such as identity theft.

Social Security Fraud by Using SSN

Identity fraud is not all about money. The persistent use of SSNs as an identification mechanism gives the thieves many options.

Identity thieves seek SSNs so they can use these numbers to assume the identity of another person and commit fraud.

A thief can fraudulently use your SSN to assume your identity and gain access not only to your Social Security information but also to your bank accounts, credit accounts, utilities records, and other sources of personal information.

They can also establish new credit and bank accounts in your name, use your SSN for employment purposes or obtain medical care.

How to Prevent Identity Theft

Official efforts are under way to restrict use of SSNs. For instance, the Social Security Administration shortens SSNs on the benefit statements it mails each year.

While essential information can be acquired in credit card, bank accounts and other documents, SSNs are the most common way of getting personal information.

In California, for instance, a birth certificate (or many other types of documents) and a valid SSN are required to get driver’s license or identification card.

The following steps are essential in reducing identity theft using SSNs:

•    Protect your SSN. Provide it only when necessary such as in tax forms, employment records, most banking, stock and property transactions. The SSN is the key to your credit and banking accounts and is the prime target of thieves.

•    If business or establishment requests your SSN, ask if you can use another number instead.

•    Do not have your SSN printed on your checks. Do not let merchants write the SSN onto your checks because of the risk of fraud.

•    Do not utter your SSN aloud when you are in a public place. Speak softly or write it down on a piece of paper instead. Be sure to retrieve and shred that paper after use.

•    Check your Social Security Personal Earnings and Benefits Estimate Statement each year to check for fraud.

•    Do not carry your SSN card in your wallet except for emergencies.

•    Do not carry wallet cards that display the SSN such as insurance cards, except when needed to receive healthcare services.

Theft identity entails a lot of damage. If you are a victim of it, consult a Social Security fraud attorney to help you in your tedious legal battle ahead.

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Missouri Social Security Lawyers Warn Clients About New Ssa Debit Cards

admin — Fri, 18 Sep 2009 01:45:00 +0000

Peter Drummond asked:

The Treasury Department, in conjunction with Comerica Bank based in Dallas, has created a social security Direct Express Debit MasterCard as an alternative to paper checks for those persons who do not have bank accounts. The debit card is now available in ten southern states, but is on its way toward the north and western states. Missouri social security lawyers are ready to answer clients’ questions regarding the pros and cons of using this free debit card that will be an option in the coming months.

The Advantages of the Direct Express Debit MasterCard:

- Will help about 4 million Americans who do not have a bank account, and must receive paper checks.

- Will reduce the vulnerability of check fraud

- Dramatically help the delay of checks mailed in hurricane-ridden states such as Alabama, Florida, Louisiana and Mississippi

- No sign-up fees

- No monthly fees

- No overdraft fees

- No credit check is required to enroll

- Gain access to cash via an ATM, bank teller or retailer

- Set up free “low balance” alerts via email or phone

While the advantages look appealing with all the “freebies” and usability, Missouri social security lawyers remind their clients to read the fine print. The same holds true for SSA’s new debit card because there are still fees associated with the little plastic card that all people should be aware of. Nothing is a “one-for-all” payment plan, so be sure to read the small print at the bottom of the agreement for this debit card, even if you have to use those extra strength reading glasses.

The Disadvantages of the Direct Express Debit MasterCard:

- ATM fees – users can make one free withdrawal from a network ATM per month; all other ATM withdrawals within the network will cost 90 cents.

- Non-network ATM use will incur the 90 cent fee in addition to the surcharge of the other bank, which can be as much as 3 dollars per cash withdrawal.

- Social security debit cards are costly to use outside the U.S. ATM withdrawals can incur both a bank fee as well as 3 percent of the amount withdrawn. Debit purchases also cost an additional 3 percent of your total amount. Your best bet is to use your one month free withdrawal from a network ATM before you travel abroad or to Mexico or Canada and exchange it for the country’s currency.

- Paper statements cost 75 cents a month. Best option is to receive them via email and print them yourself.

- Online billing from Comerica will also incur a 50 cent per bill charge. Use the merchant’s Website to make payments or purchases online.

- Only 1 free replacement card each year; additional replacements cost $4.00, or $13.50 if you require an overnight delivery.

Obviously many people have several concerns about the fees and limitations of the SSA’s alternative payment system. Even those folks who have not started receiving social security have voiced their disdain about such a program. While others are simply concerned about the amount of social security they receive or may receive in the future to cover daily living expenses such as heat, electricity, food and medical bills. What happens when their monthly checks run out before the end of the month or they require more money to cover unforeseen medical bills? How will the social security administration help those who need it most?

If you need further information or have greater concerns with this new system, your Missouri social security lawyers are just a phone call away.

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Social Security, Employment And Identity Theft

admin — Fri, 28 Aug 2009 12:30:43 +0000

Lisa Carey asked:

Identity thieves steal your personal information for many reasons. Among those are to obtain credit (money) using your credit information, but also medical benefits, Veteran’s benefits and employment.

Why would anyone steal your identity just to get a job? For many reasons, for example some people are in the United States illegally and do not have a social security number. Some people can not pass background checks, or have a criminal background that would keep them from getting jobs. Whatever the reason, Social Security Numbers are hot merchandise, if yours can be gotten, it can be sold.

“Misuse of another individual’s SSN is a violation of federal law and may lead to fines and/or imprisonment and disregarding the work authorization provisions printed on your Social Security card may be a violation of federal immigration law. Violations of applicable law regarding Social Security number fraud and misuse are serious crimes and will be prosecuted.” According to the Social Security Administration, The crime is considered a felony under federal and state laws and may result in fines and imprisonment.

In order to determine if there has been any use of your SSN to obtain employment, it is important to review your W-2 each year to determine that your social security benefits are being accurately reported and that the correct SSN is being used. Next, review your Social Security Statement issued to you each year. Check your statement against your W-2 to determine if there are any discrepancies. One way of determining if your SSN has been used illegally will be by monitoring the information on you benefits statement; which may state that benefits have been accessed or that the amount paid in maybe greater than the number reported on your W-2. To obtain a copy of your Statement of Benefits you may call the SSA toll-free at 1-800-772-1213.

Are you responsible for the taxes on the wages resulting from someone being illegally employed? Probably not, and the taxes are paid directly through the employer. As a result that money is just sitting in an account held by the federal government.

What about Social Security Benefits? What happens to the money paid in through two people employed and using the same social security number? It is estimated that approximately 420 billion dollars in federal funds are sitting in “limbo.” The government calls this the Earnings Suspense Fund. The money has been paid in, but there is no one to credit the funds or benefits to. This is because in many cases the user of your social security number is also using either their own name, or a fake name. The only people that benefit from this extra payment are the federal government as well as the imposter who is able to be employed. Each government agency (IRS and SSA) have a list of mis-matched numbers, that don’t belong to the names that are using them, so what are they doing about it?

Illegal use of your SSN is very difficult to find out about, unless you happen to apply for a job at the same place, or if they are also using it for theft of your credit information.

If after reviewing your benefits and wages information you are suspicious, take the next steps. Request a credit report to see if credit has also been obtained using your identity. If so, it is time to move quickly in order to rectify the errors in your employment, social security and credit history.

If you determine that your social security number has been compromised, you must contact the Social Security Administration and report it. Reports are made to the Social Security Administration (SSA) Office of the Inspector General. You may file a complaint online at www.socialsecurity.gov/oig, call toll-free: 1-800-269-0271, fax: 410-597-0118, or write: SSA Fraud Hotline, P.O. Box 17768, Baltimore, MD 21235.

Can you get a new social security number if you suspect that your number has been used? Maybe, but not always. The SSA will not issue a new number in the following circumstances: it was lost or stolen and no proof of damage has occurred, you are trying to avoid detection of poor credit or a criminal record, or you are trying to avoid some form of legal responsibility. However it is up to you to prove to them that your number is being used illegally, that you are not attempting to avoid credit collection or any other actions possibly pending against you.

Be proactive and try to protect and repair the damage yourself. File a report with the Social Security Administration, Federal Trade Commission and the three major credit agencies. However, without the issuance of a new Social Security Number, you are still at risk so you may want to consider using all the credit protection available to you such as placing fraud alerts on your credit report, credit freezes and consistent monitoring of your credit report. To report Identity Theft you may contact the Federal Trade Commission via telephone 1-877-438-4338.

You may find it necessary to consult with an attorney to protect your current and future benefit rights. Know your rights and stand up for them. Credit lenders or collection agents may attempt to threaten you or force you to pay for outstand debts incurred by use of your information. Consult with law enforcement officials, an attorney, the State’s Attorney General and consumer credit counseling organizations to determine what your rights and responsibilities are and you can assert them.

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Fraud in Social Security

admin — Wed, 29 Jul 2009 16:07:39 +0000

Maribel Roncales asked:

Social Security Fraud refers to the act of dishonestly claiming of benefits. Due to the increasing number of fraudulent claims, the US government enacted a law that will protect individuals from these illicit conducts.

What constitutes Fraud under the Social Security Act?

The Social Security Act provides an outline for actions that are considered fraudulent. Some of those acts are the following:

• Knowingly and willfully makes or causes to be made any false statement or representation of material facts in the application for benefits under this title;

• Knowingly and willfully makes or causes to be made any false statement or representation of a material fact for use in determining any rights to the benefits;

• Having knowledge of any event affecting

o His or her right to the benefit

o The initial or continued right to the benefit of other individual in whose behalf he or she has applied for or is receiving benefit

o Having made an application to receive any of such benefits for the use and benefit of other and having receive it, knowingly and willfully converts the benefits for the use other than for what is intended

Information needed in filing Social Security Fraud

When planning to file a Fraud complaint, you need the following data:

• Name

• Address

• Social security number of the person you are reporting.

• Description of potential fraud incident

In cases where the Social Security number is not known, you need to secure his or her date of birth, age and the name of the parents. However, if you are reporting a concealed activity you need the name of the employer and its address and phone number.

How to report Social Security Fraud incident

The Social Security Administration takes seriously any report regarding Social Security Fraud. The Office of the Inspector General is the one who investigates incidents of Social Security Fraud. If you have any knowledge regarding these incidents, you can report it immediately by:

• Calling the Social Security Office hotline number

• Use the on line fraud reporting form

• Write to Social Security Office.

Yet, if you have been the actual victim of a fraudulent act, seeking legal assistance from a competent Social Security Fraud attorney is advisable. An attorney with sufficient in handing these cases can help you prosecute the law violators.

What is the Office of the Inspector General?

The Office of the Inspector General is the one directly responsible for meeting the statutory mission promoting economy, efficiency and effectiveness in the administration of Social Security programs. It is also responsible for preventing and detecting fraud, waste, abuse and mismanagement in such programs and operations.

OIG also searches and reports systematic weaknesses in SSA programs and operations and make recommendations for improvements and corrective actions.

Penalties for the violation of the Act

Any person found guilty for Social Security Fraud shall be:

• Fined under the United States Code

• Imprisoned for not more than five years or both

The federal court in sentencing the defendant may in addition to any other penalty order restitution.

When can there be restitution?

The court orders restitution in any of the following instances:

• The Commissioner of Social Security order payment that should not have been made

• An individual suffers financial loss due to defendant’s violation of this Act.

Our Los Angeles attorneys are proven experts in handling Social Security Fraud cases. For free evaluation of your case, log on to our website and contact our legal staff.

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