Most people are aware of the dangers posed by
scams that claim to be originating from a business. But what if you
receive an e-mail, phone call, or letter claiming to come from a
government agency? Many consumers are likely to assume that such
communications are legitimate because they appear to come from the
government.
Unfortunately, these types of scams do occur. Communications may claim
to be from the IRS, the Social Security Administration, Medicare, your
local Commissioner of Jurors, or other government agencies. Learn about some of the recents scams and what you should do to avoid becoming a victim.
Identity thieves want your Social Security number (SSN) so they can assume your identity and commit fraud. Around tax time, protecting your SSN takes on even greater importance. The Information Returns that you receive (Forms W-2 and 1099) as well as your IRS income tax return (Form 1040) will all contain your SSN. Each of these forms, if not handled properly, presents an opportunity for your SSN to be used fraudulently.
The SSN has evolved since its establishment in 1935 and implementation in 1936 to be used as both an identifier and an authenticator.
This morning, we heard from a panel of experts on the use of the Social Security number as an identifier. As an identifier, the SSN is provided by individuals to answer the question, “Who are you?” As an authenticator, the topic of this panel, the SSN is provided by individuals in response to a challenge: “Prove who you are.”
Consumers often are coerced into providing an SSN as a means of authentication or verification, where appropriate authentication could be achieved through other means. Our PRC consumer hotline receives numerous calls from concerned individuals who are reluctant to provide this information either by telephone or online. They have heard the warnings about guarding their SSNs to protect themselves from identity theft. Yet paradoxically, they are afraid to take advantage of two important services that can help reduce their potential exposure to identity theft.
The Agency has received several reports of an email message being circulated with the subject “Cost-of-Living for 2007 update” and purporting to be from the Social Security Administration. The message provides information about the 3.3 percent benefit increase for 2007 and contains the following “NOTE: We now need you to update your personal information. If this is not completed by November 11, 2006, we will be forced to suspend your account indefinitely.” The reader is then directed to a website designed to look like Social Security’s Internet website.
A few years ago a Southern California woman named Michelle Brown contacted the Privacy Rights Clearinghouse seeking help regarding an especially difficult identity theft situation. The thief obtained information provided by Michelle on a housing application and procured over $50,000 in goods and services including a lease for an apartment, a $32,000 truck, and liposuction. The thief also obtained a state- issued ID using Michelle's name and later engaged in drug smuggling for which she was arrested as Michelle.
