Retirees Beware: Social Security Recipients Receiving Fraudulent, Threatening Emails

Key Points

• Scammers view retirees as a rich source of easy-to-access money.

• A recent scam involves crooks claiming to be the Social Security Administration.

• You can protect your private information by remaining on the lookout for scams.

• The $23,760 Social Security bonus most retirees completely overlook ›

There's a new scam in town, and this one is targeting Social Security recipients. It's certainly not the first (nor will it be the last) scam designed to separate you from your money, but it's a particularly nasty one.

Image source: Getty Images.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

What would you do?

You've worked hard for decades, doing everything possible to prepare for retirement and maximize your Social Security benefits. You carefully protect your assets, never sharing passwords and leaving your laptop at home when you visit your local coffee shop.

One morning, you wake up to an email from the Social Security Administration (SSA), claiming an ongoing federal investigation is linked to your Social Security number. According to the email, your number is involved in criminal activities, and the SSA threatens to suspend your benefits.

Even though you suspect there's something wrong with the email, your heart still beats a little faster. You've planned your retirement income down to the dollar and have a strict withdrawal strategy. You mentally rearrange your budget, considering what you would do if your Social Security benefits were suspended while the SSA conducted an "investigation."

If -- even for a short time -- you feel anxious, you can blame it on being human. According to Oakland Psychological Clinic of Michigan, humans still react to threats as though living in the wild. At the thought of someone stealing your Social Security number, your body's autonomic nervous system controls things you don't consciously think about, like heartbeat and digestion. As adrenaline, norepinephrine, and cortisol are released into your body, the threat suddenly feels very real.

How scammers hope to get you

The scam works when an email recipient can't shake the anxiety of what "might" happen long enough to critically consider who the email is from. Here's what anyone who receives such an email should know:

The SSA does not send emails. If it wants to contact you, it will send a letter addressed to your full name. Even then, you can take steps to ensure that the letter is from the SSA. For example, you can look online for an official SSA phone number and call that number to check the letter's legitimacy.

Your Social Security number can't be temporarily suspended, no matter what an email may claim.

How the scam works

According to a news report from WGAL News 8, a local Lancaster, Pennsylvania, station, emails sent to area residents included a phone number. When News 8 called the number, they spoke to a man with a "heavy accent" who claimed to be an SSA employee. "Your name and your number have been used in money laundering and drug trafficking, so that's the reasons (sic). Today, we are going to suspend your socials at this moment," the person said.

When the news organization asked questions, the scammer hung up. The scammer's goal was to threaten the victim with fines to avoid criminal charges and ultimately extract their full Social Security number.

Protect yourself and your Social Security number

You've worked hard to earn Social Security benefits and can prevent a thief from taking what's rightfully yours. The National Institute on Aging suggests the following steps:

• Never give out sensitive personal information (like your Social Security number) in response to an email, over the phone, or through a text message. In addition to your Social Security number, protect your bank account information, credit card numbers, PINs, and passwords.
• Protect your electronic accounts by ensuring the security software on your computer and smartphone is current. Also, use multifactor authentication whenever possible.
• Check incoming bills for charges you didn't authorize. If you see a charge you don't recognize, contact the credit card company, utility provider, or other business to let them know.
• Never transfer money to someone over the phone.
• Never buy a gift card to pay someone over the phone. Once you transfer the money or share the numbers on the back of the gift card, there's typically no way to get your money back.

The National Institute on Aging reminds retirees that scammers may threaten or pressure you to act immediately. If this happens, slow down and carefully consider what the person is saying. If you get even a whiff that you're being scammed, cut all contact with the scammer and speak with someone you trust.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.