Social Security and Medicare Scams

Welcome to the Retirement Learning Center’s (RLC) Case of the Week. Our ERISA consultants regularly receive calls from financial advisors on a broad array of technical topics related to IRAs, qualified retirement plans and other types of retirement savings and income plans, including nonqualified plans, stock options, Social Security and Medicare. This is where we highlight the most relevant topics affecting your business. Recent calls with financial advisors in Indiana and Minnesota are representative of common scenarios involving investor scams.

Several of my colleagues and I have been discussing the apparent increasing number of Social Security and Medicare scams directed at our clients. Aside from alerting the public, what can we tell our clients to do to help foil these con artists?

Highlight of the discussion on scams seeking personally identifiable information (PII)

Scam #1

A client had scheduled an appointment with a local Social Security office. Several days prior to the appointment the client received a call from a person claiming to be with the Social Security office and wanting to confirm the details of the upcoming appointment. The caller noted the date and time of the appointment and asked for the client’s name and Social Security number to confirm the appointment.

Unfortunately, the client complied and provided her contact information and Social Security number. The caller was a scammer and not affiliated with the Social Security administration. How the caller obtained the Social Security appointment details is unknown.

Scam #2

Another client received a call from a person claiming to be with Medicare. The client had recently turned 65 and signed up for Medicare. The caller asked the client if he had received their final Medicare kit and the official laminated Medicare card. The client replied, “No, I have not.”

The caller stated, "The official, laminated Medicare card was needed if Medicare was to cover the client’s medical bills.” The caller then asked for confirmation of the client’s name, date of birth and Social Security number before the packet could be sent.

In this case, the client smelled a rat and refused to provide the information. After a few phone calls the client’s suspicions were confirmed that there is no such thing as an “official, laminated Medicare card.”

What can clients do if they feel they may have been victims of Social Security or Medicare scams like these? You can refer them to the following websites for ways to report the scams and tips on how to protect themselves.

Social Security scams: Protect Yourself from Scams

Medicare scams: Older Americans and Medicare Call Scams

Conclusion

Both situations illustrate the subtlety and sophistication of these scams and the importance of reminding clients not to provide sensitive PII over the phone or other media. Reporting scams helps agencies educate and alert the public.