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Vanity - Massive Social Security Direct Deposit Fraud
NA | 07/30/2012 | Self

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).


TOPICS: Miscellaneous
KEYWORDS: fraud; identitytheft; socialsecurity
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This smells to me like an inside job... so everyone should be extra alert... especially since the administration appears to be trying to keep this all under the radar.
1 posted on 07/30/2012 12:34:07 PM PDT by Cementjungle
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To: Cementjungle

And we are expected to trust these incompetents with our personal medical information too?


2 posted on 07/30/2012 12:36:23 PM PDT by 43north (BHO: 50% black, 50% white, 100% RED)
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To: Cementjungle

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


3 posted on 07/30/2012 12:40:47 PM PDT by silverleaf (Every human spent about half an hour as a single cell)
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To: Cementjungle

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!


4 posted on 07/30/2012 12:44:31 PM PDT by sirchtruth (Freedom is not free.)
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To: Cementjungle

similar story from November last year

http://www.kktv.com/home/headlines/11Call_for_Action_Investigates_Social_Security_Scam_133581033.html


5 posted on 07/30/2012 12:44:52 PM PDT by nascarnation
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To: Cementjungle

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.


6 posted on 07/30/2012 12:47:25 PM PDT by Ingtar ("As the light begins to fade in the city on the hill")
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To: Cementjungle

The administration is probably behind it. Looking for a little extra campaign cash.


7 posted on 07/30/2012 12:49:09 PM PDT by <1/1,000,000th%
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To: silverleaf
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

Exactly.

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.

8 posted on 07/30/2012 12:49:48 PM PDT by cynwoody
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To: 43north
"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)."

In my line of work that's known as a "clue." SS should have been able to immediately put the breaks on this. My credit card company is able to ferret out and immediately stop suspect transactions, and the U.S. Govt. can't?
9 posted on 07/30/2012 12:50:14 PM PDT by PowderMonkey (WILL WORK FOR AMMO)
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To: 43north

Yyyyyyyup!!


10 posted on 07/30/2012 12:53:58 PM PDT by SMARTY ("The man who has no inner-life is a slave to his surroundings. "Henri Frederic Amiel)
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To: Cementjungle

I thought there were all sorts of passwords and stuff needed to change your DP. How did those perps manage to get that information?


11 posted on 07/30/2012 12:56:02 PM PDT by SkyDancer ("Ambition Without Talent Is Sad - Talent Without Ambition Is Worse")
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To: SkyDancer

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.


12 posted on 07/30/2012 12:59:20 PM PDT by Cementjungle
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To: PowderMonkey

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.


13 posted on 07/30/2012 1:05:14 PM PDT by pajama pundit (BEN KENOBI 2012 - "Our Only Hope")
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To: Cementjungle

Sounds to me like she just made a donation to the “ReElect Obama” campaign!!!!


14 posted on 07/30/2012 1:10:08 PM PDT by mo (If you understand, no explanation is needed. If you don't understand, no explanation is possible.)
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To: Cementjungle

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.


15 posted on 07/30/2012 1:12:37 PM PDT by TurkeyLurkey
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To: Cementjungle

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.


16 posted on 07/30/2012 1:14:18 PM PDT by cuban leaf (Were doomed! Details at eleven.)
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To: cuban leaf
What do you mean, “This month’s payment can’t be recovered”

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.

17 posted on 07/30/2012 1:16:15 PM PDT by Cementjungle
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To: Cementjungle

http://www.kktv.com/home/headlines/11Call_for_Action_Investigates_Social_Security_Scam_133581033.html


18 posted on 07/30/2012 1:16:15 PM PDT by SkyDancer ("Ambition Without Talent Is Sad - Talent Without Ambition Is Worse")
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To: Cementjungle

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.


19 posted on 07/30/2012 1:16:47 PM PDT by Dr. Sivana ("I love to hear you talk talk talk, but I hate what I hear you say."-Del Shannon)
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To: Dr. Sivana

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.


20 posted on 07/30/2012 1:23:49 PM PDT by Cementjungle
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To: Cementjungle

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.


21 posted on 07/30/2012 1:24:41 PM PDT by SkyDancer ("Ambition Without Talent Is Sad - Talent Without Ambition Is Worse")
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To: Cementjungle

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.


22 posted on 07/30/2012 1:28:08 PM PDT by SkyDancer ("Ambition Without Talent Is Sad - Talent Without Ambition Is Worse")
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To: Cementjungle

PS - nothing from Columbia bank either.


23 posted on 07/30/2012 1:29:47 PM PDT by SkyDancer ("Ambition Without Talent Is Sad - Talent Without Ambition Is Worse")
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To: SkyDancer

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.


24 posted on 07/30/2012 1:35:15 PM PDT by Cementjungle
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To: Cementjungle

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

http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/220/~/reporting-a-missing-social-security-benefit-payment

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


25 posted on 07/30/2012 1:38:45 PM PDT by silverleaf (Every human spent about half an hour as a single cell)
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To: Cementjungle

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.


26 posted on 07/30/2012 1:40:32 PM PDT by WhiskeyX
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To: Cementjungle
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. That is unacceptable, they are blowing smoke up her behind. Keep making phone calls until she is reimbursed.
27 posted on 07/30/2012 1:43:42 PM PDT by Teflonic
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To: WhiskeyX
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?

28 posted on 07/30/2012 1:47:25 PM PDT by Cementjungle
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To: Cementjungle

http://www.ssa.gov/deposit/DDFAQ898.htm

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

http://www.ssa.gov/deposit/DDFAQ898.htm

“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


29 posted on 07/30/2012 1:48:00 PM PDT by silverleaf (Every human spent about half an hour as a single cell)
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To: Cementjungle

—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.


30 posted on 07/30/2012 1:54:12 PM PDT by cuban leaf (Were doomed! Details at eleven.)
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To: silverleaf; Cementjungle

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


31 posted on 07/30/2012 1:54:55 PM PDT by silverleaf (Every human spent about half an hour as a single cell)
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To: Cementjungle

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.


32 posted on 07/30/2012 1:56:40 PM PDT by SkyDancer ("Ambition Without Talent Is Sad - Talent Without Ambition Is Worse")
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To: Cementjungle
Seems as if this person had a *different* experience w/ SSA...

http://www.kktv.com/home/headlines/11Call_for_Action_Investigates_Social_Security_Scam_133581033.html

Anothe version....

http://articles.latimes.com/2011/may/24/business/la-fi-lazarus-20110524

33 posted on 07/30/2012 2:06:48 PM PDT by Daffynition (Our forefathers would be shooting by now.)
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To: TurkeyLurkey
Spouse currently receiving monthly check

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.

34 posted on 07/30/2012 2:09:42 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: silverleaf
a million lost social security checks is a huge national crime against our banking system

It's not checks... it's direct deposits.

35 posted on 07/30/2012 2:15:27 PM PDT by Cementjungle
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To: TurkeyLurkey
What the government can giveth, the government can taketh away, and then some. I set up a separate account at a separate bank for this. When the money came in, I went in and got it out, and hand carried it to my regular bank. This was for child/spousal support. I went to court to have the whole scheme canceled.
36 posted on 07/30/2012 2:30:12 PM PDT by Excellence (9/11 was an act of faith.)
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To: Cementjungle
What do you mean when you say this month's (which is actually the July check) can't be recovered? I hope they haven't told you that you have to kiss that payment goodbye. Your wife didn't create the problem, the government did.

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?

37 posted on 07/30/2012 2:37:37 PM PDT by mass55th (Courage is being scared to death - but saddling up anyway...John Wayne)
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To: Cementjungle

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.


38 posted on 07/30/2012 2:40:18 PM PDT by mass55th (Courage is being scared to death - but saddling up anyway...John Wayne)
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To: mass55th
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.

39 posted on 07/30/2012 2:45:31 PM PDT by Cementjungle
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To: SkyDancer
"You would think that the SSA would have a comment on it but they don’t."

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.

40 posted on 07/30/2012 2:49:11 PM PDT by mass55th (Courage is being scared to death - but saddling up anyway...John Wayne)
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To: <1/1,000,000th%
"The administration is probably behind it. Looking for a little extra campaign cash.

Generating that civil unrest they plan to use those drones on.

41 posted on 07/30/2012 2:57:11 PM PDT by mass55th (Courage is being scared to death - but saddling up anyway...John Wayne)
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To: sirchtruth

Sounds to me like Obama found a new source of campaign funds.


42 posted on 07/30/2012 3:07:23 PM PDT by donna ("...gay couples raising kids. That's the American way..." -Mitt Romney)
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To: Cementjungle

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.


43 posted on 07/30/2012 3:31:49 PM PDT by WhiskeyX
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To: WhiskeyX
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.

44 posted on 07/30/2012 3:36:13 PM PDT by Cementjungle
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To: Cementjungle
Yet, somehow, nary a word of this is breathed by the press.

Why, it's almost like some sort of Continuing Criminal Enterprise.

45 posted on 07/30/2012 3:37:40 PM PDT by Lazamataz (I hate the Universe, and it hates me.)
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To: mass55th

When we spoke to them earlier today, the SSA representative asked for:

Social Security Number
Name
Date of Birth
Address
Father’s Full name
Mother’s Full Maiden Name
Bank
Direct Deposit Account Number


46 posted on 07/30/2012 3:38:11 PM PDT by WhiskeyX
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To: Lazamataz
Yet, somehow, nary a word of this is breathed by the press

Pretty shocking, I know.. since the press can't wait to find things wrong with the way Obama's running things around here.

47 posted on 07/30/2012 3:40:13 PM PDT by Cementjungle
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To: Cementjungle

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.


48 posted on 07/30/2012 3:45:10 PM PDT by WhiskeyX
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To: Cementjungle
Yet, somehow, nary a word of this is breathed by the press ....Pretty shocking, I know.. since the press can't wait to find things wrong with the way Obama's running things around here.

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.

49 posted on 07/30/2012 3:46:08 PM PDT by Lazamataz (I hate the Universe, and it hates me.)
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To: Cementjungle

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.


50 posted on 07/30/2012 3:48:53 PM PDT by WhiskeyX
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