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Direct Deposit Option Paves Way for New SS Benefits Fraud Scheme

October 16, 2012

Scammers are apparently having a blast cashing in on thousands of social security checks meant for seniors, a New York lawmaker revealed.

Sen. Charles Schumer, D-NY, recently bared the new scheme, in which he alleged that the prevailing set-up of directly depositing social security checks allow identity thieves to easily redirect such funds to their personal accounts.

The current system allows for re-routing of social security payments by simply providing a specific social security number and date of birth.

Senator Schumer added that there are actually “a lot of ways to scam the system.” He countered, however, that it is possible to address the problem.

“But every one of them could be stopped dead in its tracks by one simple word: notification,” Schumer added.

He also urged the Social Security Administration to first call the elderly beneficiaries to ascertain whether or not the latter ordered the change in account details before they decide to make the check deposits.

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