Res. No. 1803
Resolution calling upon the Social Security Administration to take additional measures to curb Social Security fraud.
By Council Members Lappin, Chin, James, Koo, Koppell and Mendez
Whereas, Social Security is a federal program providing retired and disabled American workers, surviving spouses and children of workers, and low-income disabled individuals with monthly monetary benefits; and
Whereas, Approximately 56.7 million Americans receive Old-Age, Survivors, and Disability Insurance benefits and more than 8 million are recipients of Supplemental Security Income; and
Whereas, Eighty-eight percent of New York State residents over age 65 receive Social Security benefits, on average accounting for more than 58 percent of those seniors' incomes; and
Whereas, Many seniors in New York City depend on each monthly Social Security payment to pay for basic necessities such as housing and food; and
Whereas, In 2011, the Social Security Administration began issuing benefit payments electronically, allowing beneficiaries to route payments directly into bank accounts or onto pre-paid debit cards, with enrollment in the electronic payment program becoming mandatory for most beneficiaries in March 2013; and
Whereas, In September 2012, the Social Security Administration's Office of the Inspector General announced it had received more than 19,000 reports of questionable direct deposit changes made to beneficiary accounts and continued to receive approximately 50 new reports per day; and
Whereas; Identity thieves call or email beneficiaries, often posing as government officials or claiming the beneficiary has won a lottery or prize, and attempt to obtain personal information that can be used to falsely pose as the beneficiary; and
Whereas, Once an identity thief secures certain personal information from a Social Security beneficiary, they are often able to open an online account with the Social Security Administration or call the agency posing as the beneficiary and request that benefits be rerouted to a new bank account; and
Whereas, The Social Security Administration should take additional measures to protect beneficiaries from fraud, including the improvement of verification measures to confirm the identity of callers requesting account changes over the phone and the implementation of new notification systems such as mailed confirmation letters, supplemented by emails, text messages, and automated phone calls to alert beneficiaries that changes have been made to their account; and
Whereas, In addition, the Social Security Administration should allow beneficiaries that fear they have been a victim of fraud to require in-person verification before any changes may be made to their account; now, therefore, be it
Resolved, That the Council of the City of New York calls upon the Social Security Administration to take additional measures to curb Social Security fraud.
LS# 4172
5/23/13 12:39PM
KET