Retirees Should Be Aware Of This Overpayment Social Security Scam

A current Social Security overpayment scam will try to convince retirees that they have received excess benefits and must repay the funds immediately. The scammer plays on fear; they'll call or message, pretending to be from Social Security or the IRS, and say something scary — like your benefits are getting cut off or you're about to be arrested. Then, they demand payment fast. For older adults, especially those who rely on monthly checks, that threat feels real. And that's exactly what these scammers want. It is a tactic similar to that applied in the Social Security scam that tricks you into fake investments.

Fraudsters may also pressure victims to "verify" personal information, such as Social Security numbers or bank account details, under the guise of resolving the issue. The SSA reports that while most scam types declined, the Social Security scam surged in 2024, with retirees aged 70 to 84 and 85 above, losing an average of $7,492 to $11,902 per incident. Note, however, that if the SSA overpays you, it will request you pay back. Yet, an overpayment notice from the SSA will arrive by mail, include detailed repayment options, and allow appeals. Scams, by contrast, rely on urgency. For example, the SSA will never threaten arrest or demand immediate payment over the phone.

Scammers deploy a calculated, multi-step process to exploit retirees. First, they initiate contact through spoofed phone numbers displaying "SSA" or fake emails mimicking real addresses like gov.ssa@protonmail.com and other legitimate government-related addresses. These scams usually start with a message claiming you were overpaid. They'll say you have 24 to 48 hours to pay it back or face serious trouble but they want the money through gift cards, crypto, or cash apps. That's a red flag; real government agencies don't ask for money like that.

Fraudsters frequently escalate pressure by threatening arrest warrants, benefit cancellations and suspension of Social Security numbers. They may send counterfeit "official" letters with forged SSA letterheads or direct victims to fraudulent websites mimicking the mySocialSecurity portal. And it gets sneakier. Some use AI voice clones to sound like actual government workers when they call. According to the National Council on Aging, this trick is becoming more common. It's all designed to make you trust them and it makes up part of the nine AI-powered financial scams.

Retirees should watch for unsolicited requests to "confirm" sensitive data like Social Security numbers, Medicare IDs, or bank routing details. Legitimate SSA communications never ask for full SSNs or passwords. Another tactic involves phishing links in emails that install malware to harvest financial information.

Avoid falling for overpayment scams by confirming any suspicious communication directly with the Social Security Administration. To verify claims, retirees can report to the SSA through oig.ssa.gov/report or visit a local office. Third-party tools like the FTC's ReportFraud.ftc.gov should also help you track and report scams. Never use contact details provided in unsolicited calls or emails and consider adding extra measures to your Social Security account, like activating the eServices block or The Direct Deposit Fraud Prevention block.

Enable two-factor authentication on your Social Security account to prevent unauthorized access. This portal lets you review benefit statements and track payments in real time, helping you spot discrepancies before scammers exploit them. If you receive a questionable letter, cross-check its contents with your online account or call the SSA. Fraudulent notices often contain typos, incorrect claim numbers, or references to outdated programs like "COVID-19 benefit adjustments," which the SSA discontinued in 2022.

If targeted, document the interaction; save voicemails, take screenshots of texts or emails, and note caller details. Report the incident to the SSA's Office of the Inspector General through its online fraud reporting form and file a complaint with the FTC at ReportFraud.ftc.gov. Share the scam attempt with family members, as criminals often target multiple contacts once they confirm a number is active.