Skip to comments.Vanity - Massive Social Security Direct Deposit Fraud
Posted on 07/30/2012 12:33:59 PM PDT by Cementjungle
Just a heads up for those who are collecting SS benefits (retirement in our case).
My wife discovered that someone changed her direct deposit information to a bank called Columbia bank, so she had to go to the SS office to try and straighten it out. This month's payment can't be recovered, but she hopes that next month's can be redirected back to the proper account.
The woman at the SS office said there was a major security breach in their systems in January, and this month alone there were over one million accounts changed to this Columbia bank (which is a pass-through to banks in Russia and India).
And we are expected to trust these incompetents with our personal medical information too?
Oh, this month’s payment CAN be recovered
You need to demand an investigation by both your Congress critter and your Senator of a senior citizen defrauded out of her check and the SS administration doing a shoulder shrug
Squeak those wheels
Get your bank involved, too, even if they say its not their fault
There is a special investigating organzation for bank fraud and it DOES get noticed
Your wife and your wife need to change every password and get a copy of your credit reports
The government is TOTALLY responsible. They have to take the loss and reimburse the funds. The bank is responsible for identifying their customers under all state banking regulations. So is the government!
similar story from November last year
Contacting the local news, especially if you have one of the reporters who specialize in investigating things, is one way to draw attention and get it fixed as well. Many times they will say the money is lost because they do not want to be bothered working on it.
The administration is probably behind it. Looking for a little extra campaign cash.
Squeak those wheels
And, even if the payment can't be recovered, think how much more anti-government noise it can make than a political contribution of the same size.
I thought there were all sorts of passwords and stuff needed to change your DP. How did those perps manage to get that information?
Banks have the ability to directly access the Social Security systems. So, it appears that someone at this Columbia bank got a batch of data and ran them through directly to the SS systems.
Exactly (a clue). At a time when my credit card company calls me that night when I charge something “unusual” on my card to make sure it’s legitimate, yet a “million accounts changed to this Columbia bank.” Sounds like Sgt Shultz is on the job.
Sounds to me like she just made a donation to the “ReElect Obama” campaign!!!!
Spouse currently receiving monthly check, has been receiving a flyer with the check for the last few months saying to get online and sign up for automatic deposits.
This month the flyer says “When disasters strike, we can’t deliver paper checks.” Ha-ha. Then, beneath that it says, “You are required to switch. Don’t wait.”
People have until the end of this year to sign up.
What do you mean, “This month’s payment can’t be recovered”.
If my employer changed my direct deposit based on false information, I would expect them to cough up the dough. I would not be liable for their mistake.
The representative at the SS office told her that in order for her to recover this month's payment, SS has to first be able to recover it from whomever it went to in Armenia or wherever.
We’ll be hearing about this several times a week for the next several months as Rush Limbaugh integrates this story into his mid-segment LifeLock ads.
Apparently, anyone at any “bank” can alter the SS systems directly to start receiving someone’s deposits. I don’t think LifeLock would be able to detect that.
There is also this:http://oig.ssa.gov/follow-review-social-security-administrations-controls-prevent-and-detect-direct-deposit-fraud. Doesn’t seem like they’re not on top of fraud. So far there’s nothing out there to dispute the poster, however there’s nothing out there to verify it either. Just saying.
Could be. Although there’s no news story out there saying so. Also, the poster didn’t link to any news source reporting this. I did some searching and couldn’t come up with anything. You would think that the SSA would have a comment on it but they don’t.
PS - nothing from Columbia bank either.
I don’t care if you believe me or not... and no, there’s no news story on this, since this a personal experience that just happened this morning.
According to the SS agent, they started nailing accounts of foreign-speaking people in January, and have now started in with other accounts.
I’m only posting this so folks here will be a little more on alert... and if they don’t receive their payments on time, they should not hesitate to deal with it.
That sounds like bullshit that they have to recover the funds from the thieves before you get paid your benefits
expecially if they knew their system was hacked months ago and failed to inform or protect you
Dont just listen to some shoe clerk , Please get on record and report this- otherwise you may have to pay taxes on it as if you received it!
I would go to the IG AND to my Congressman, and also see if I could file a police report
It is surprising how bureaucrats are stirred when they have to answer to a congressional investigation
a million lost social security checks is a huge national crime against our banking system
FWIW two Social Security Administration offices, national and local, have just now said they have no information about a breach in their security or reports of direct deposit accounts being redirected to a Columbia Bank.
Well, that's a coincidence... do you have the link to that announcement?
Q: After I sign up for direct deposit, do I have to stay with the same bank?
A: No, you can use direct deposit at any federally insured bank, savings and loan or credit union. If you move your account, call Social Security’s toll-free number, 1-800-772-1213 (TTY 1-800-325-0778), and a Social Security representative will change your direct deposit information. Open the new account and make sure your deposits are going to the new bank, savings and loan or credit union before you close the old account.
So also investigate exactly HOW and WHO processed the change to your direct deposit
“Q: I realize electronic payments will be more convenient for me, but what are the benefits to the government?
A: In addition to being safe and convenient for beneficiaries, electronic payments are more efficient and cost effective for the government because they cost less than preparing and mailing monthly checks. In addition, the government doesn’t have to pay to replace checks that are lost, stolen or missing.”
If your wife was receiving a check and it was stolen, they would replace it after 3 days. NO requirement that they recover the money from the thief before they pay your benefits. More indication this “We know nothin we can do nothin” is HOOEY
—The representative at the SS office told her...—
Then that is where you start making it difficult for them.
And you are not doing it for you. You are doing it for everyone else.
Interesting also to note that SS own guidelines say direct depost must be at any FEDERALLY INSURED bank S&L or credit union.
Is “Columbia Bank” a “FEDERALLY INSURED” institution?
If not how and why did some knuckle brain allow a Direct Deposit account transfer - or allow transactions to be processed by an insecure unaudited electronic transfer system??? Especially for millions of accounts????? Talk about a red flag!
Fight this one
Sorry but I was just trying to follow up on your story. I wrote my grandad about what you posted and he got all upset since his SS check goes to DP. I searched all over the net trying to find associated stories to your post and only came up with that one. It’s not a case of whether I believe you or not. It’s about trying to find out what’s going on. Neither the SS or Columbia bank have anything about your post. I would think that either of the two entities involved would have posted something about it. You should inform them of what’s happened to you esp. Columbia bank where the fraud supposedly took place. Just saying.
Thieves know when those checks are delivered and steal them from mailboxes or if you get yours at a P.O. box at the post office they will follow you and mug you or worse.
It's not checks... it's direct deposits.
I just changed banks and had to fill out new paperwork at the new bank to get my two direct deposited checks changed over to the new account. I then got a confirmation letter from Social Security as to the date it would occur.
However, when I initially called the local office of Social Security, they told me all I had to do was call up and give them the new routing and account number, and they would take care of it. Since I had the new bank take care of faxing their forms to SS and my pension office, I have no idea what security questions SS would have asked me over the phone, to ensure that it was actually me on the other end of the line. How do they verify you are who you say you are if you call the office directly to make this change. Anyone know?
One other thought on the subject. Since the government decided recipients had to have direct deposit or receive a debit card for their SS checks, they definitely created this mess, and will have to pay your wife that money.
We'll see. Our first concern is to at least get future deposits. Then, we'll struggle to get July's payment back. Dealing with SS people (especially here in Los Angeles) isn't the easiest thing in the world.. especially when my wife doesn't speak Spanish.
They don't want to have to deal with the phone calls they'll be getting from people panicking because their direct deposits aren't there. Can't interrupt those smoke and coffee breaks, and hour lunches you know.
Generating that civil unrest they plan to use those drones on.
Sounds to me like Obama found a new source of campaign funds.
It wasn’t an announcement. After reading your post, I telephoned the SSA to check on an SSA account, confirm the problem with SSA, and see if SSA had any additional steps which could be taken to deny any attempt to alter the direct deposit account to Columbia Bank. Their answer was no on confirmation and no additional steps to secure the account. So far, the SSA representatives report they don’t have access to any alerts or other information about the problem you commented upon. The SSA account was unchanged.
Well, I hope your account doesn't get nailed in the next batch to get hit. In the meantime, believe what you wish... I was just letting people know so if they do get nailed they will act quickly to minimize the damage.
Why, it's almost like some sort of Continuing Criminal Enterprise.
When we spoke to them earlier today, the SSA representative asked for:
Social Security Number
Date of Birth
Father’s Full name
Mother’s Full Maiden Name
Direct Deposit Account Number
Pretty shocking, I know.. since the press can't wait to find things wrong with the way Obama's running things around here.
I don’t know why you said all of that. I only reported what happened when I contacted the SSA about the problem you reported, without implying anything whatsoever one way or another..It is what it is. The SSA representatives were unable to confirm theinformation for whatever reason. Why is an unanwered question at this point in time.
Yeah, I know. Well maybe once a Republican gets in office, they will lay off on all the investigative reporting and thinly-veiled editorials disguised as news.
They tend to leave Republicans alone, y'see.
When you have up to 30 or more SSN accounts like Obama’s, you need to siphon off the money from some place to cover the expenditures.
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