One type of scam takes advantage of the public’s confusion over changes in health insurance. Someone perpetrating this type of fraud may call a senior and say that new Medicare cards are being issued and they just need to verify some personal information. A similar trick is for callers to say they are IRS agents. The goal is to obtain personal details such as Social Security numbers, which can be used to set up credit cards or loans in victims’ names, or claim their income tax refunds.

Seniors may be targeted in part because they are more likely to answer the phone, because they may have retirement savings or because they are perceived as more trusting. However, scammers will defraud anyone they can. The federal government reported that almost 83,000 complaints of this type of imposter scam were received in 2012, an increase of 12 percent from 2011.

Other criminals target electronic Social Security benefits payments. More than $28 million in benefits was stolen from October 2011 to June 2013. The thieves begin by obtaining a victim’s personal information, such as Social Security number and bank account information, which is often done through the same type of fraudulent telephone call, with the scammers posing as government officials. The fraudsters then contact the Social Security Administration or the victim’s bank pretending to be the victim and have the electronic benefits payments transferred to an account that they control.

The U.S. Senate Special Committee on Aging recently convened a panel of advocates and victims to learn what action can be taken to prevent this type of crime. Once the benefits have been stolen, getting them repaid can be difficult if not impossible.

On an individual level, seniors and others should take care to avoid being taken advantage of. First of all, never give out personal information such as a Social Security number to an unsolicited caller over the phone. Official communication from government agencies is by letter delivered by the U.S. Postal Service. Never wire money to an unknown person or agree to accept debit or credit cards in another person’s name. If you receive a call from a person pretending to be a Social Security official, call the Social Security Fraud Hotline at 1-800-269-0271.

The Hale Law Firm believe the right solution to your estate planning, elder law, or probate needs can be identified in a free initial consultation with one of our attorneys and counselors at law. To learn more or to contact a Dallas estate planning attorney, visit http://www.thehalelawfirm.com/ or call 972.351.0000

Recipients of Social Security benefits are at risk from scammers who attempt to redirect electronic payments to accounts they control. An estimated $28 million was stolen this way between October 2011 and June 2013.

The thieves proceed by obtaining a recipient’s Social Security number and other personal information, sometimes by posing as a telemarketer or a representative of the Social Security Administration. With a Social Security number and bank account information, the scammer can contact Social Security or the bank pretending to be the recipient and redirect payments to another bank account. Some thieves have also hacked into online Social Security accounts and changed the bank account for direct deposits.

The U.S. Senate Committee on Aging recently convened a panel of victims and advocates to address the problem and seek solutions. One woman testified that three months of Social Security electronic benefits were stolen from her and redirected to another bank account. She spent 50 days appealing to her bank, government officials and Senator Bill Nelson, the committee chair, before having her benefits reinstated. Another woman had six months of Social Security disability benefits stolen from a debit card. When the Direct Express debit card company would not reimburse her, she could not pay her rent and was evicted.

To prevent theft of Social Security electronic benefits, remember to never give personal information such as your Social Security number or bank account information to any unknown person. Suspicious activity may be reported to the Social Security Fraud Hotline at 1-800-269-0271 or http://oig.ssa.gov/report-fraud-waste-or-abuse.

For more information, visit www.littmankrooks.com.