Social Security Ends Phone-Based Bank Changes to Prevent Fraud

Previously, the SSA verified identity over the phone by asking security questions

Social Security Ends Phone-Based Bank Changes to Prevent Fraud

Social Security Ends Phone-Based Bank Changes to Prevent Fraud

Starting March 29, the Social Security Administration (SSA) will no longer allow beneficiaries to change their direct deposit bank account information over the phone. The agency says this measure aims to reduce fraud risks, as nearly 40% of direct deposit fraud has been linked to phone-based account changes.

Previously, the SSA verified identity over the phone by asking security questions. However, the agency now considers this method insufficient to prevent identity theft and unauthorized account changes.

How Can Social Security Beneficiaries Update Their Bank Information?

After the policy change takes effect, individuals who need to modify their direct deposit details will have two options:

The SSA confirmed that all other phone services will remain unchanged, addressing concerns about potential broader cutbacks in telephone support.

Concerns and Controversy Surrounding the Decision

This policy shift was driven by the Department of Government Efficiency (DOGE), an initiative led by Elon Musk aimed at streamlining bureaucratic processes. However, critics argue that the new rule could create difficulties for seniors, disabled individuals, and those with limited internet access or mobility issues.

Despite initial reports suggesting a wider reduction in Social Security phone services, the SSA clarified that no other telephone-based services will be eliminated.

With over 70 million Americans relying on Social Security, policy changes like this can have a major impact—especially on seniors, who make up nearly 90% of benefit recipients.

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