With the announcement of the COLA increase to 2.8% by 2026, fraud is on the rise. This annual increase is automatically applied to benefits, but that doesn’t stop scammers from trying to take advantage of the situation to steal money or personal information. The Better Business Bureau (BBB) has issued an alert urging beneficiaries to be vigilant against potential scams.
The scammers can access the bank accounts or to trick victims into voluntarily making a bank transfer
Experts warn that there are several ways to scam people, one of which is by impersonating Social Security Administration (SSA) officials in automated calls. They ask for personal information and tell victims they have to pay some kind of fee to receive benefits, with the goal of getting users to provide personal data that allows the scammers to access their bank accounts or to trick victims into voluntarily making a bank transfer.
The COLA is automatically applied to benefits, so Social Security beneficiaries don’t need to do anything
This process has recently begun due to the publication of the Cost of Living Adjustment (COLA) for next year. Each year, the Social Security Administration (SSA) announces the Cost of Living Adjustment (COLA) in October to ensure benefits don’t lose purchasing power due to inflation. The COLA is automatically applied to benefits, so Social Security beneficiaries don’t need to do anything, including approving any income, providing personal information over the phone, or completing any paperwork. If they have any questions, beneficiaries can visit an official Social Security office in person to have their concerns addressed.
Even though the annual increase is automatically applied to benefits, that doesn’t stop scammers
Experts warn that scammers try to trick beneficiaries into providing personally identifiable information and other sensitive data, such as bank account numbers, to activate the COLA increase—something that, as explained above, is completely false. Social Security scams are a common type of government imposter fraud. Therefore, anyone who contacts you or a family member saying you need to apply for the cost-of-living adjustment is almost certainly a scammer. As we can see, even though the annual increase is automatically applied to benefits, that doesn’t stop scammers from trying to take advantage of the situation to defraud, precisely, those with the fewest resources.
According to experts, the use of COLA in scams began in late 2021, after the SSA announced a 5.9% increase in benefits for 2022
Just like technology, scams are evolving. They’re not just phone calls asking for personal information; experts say scammers can also send a web link or directly ask you to open a link online, which then grants them access to victims’ personal information. According to experts, the use of COLA in scams began in late 2021, after the SSA announced a 5.9% increase in benefits for 2022—at the time, the largest increase in four decades. So, simply put, as the SSA says: “If you receive a suspicious message, do not click on any links or attachments.”
“Users can opt to receive notices online instead of by mail when they log in or create a my Social Security account”
In any case, by the end of November, Social Security COLA notices will be available online for most beneficiaries in the Message Center of their my Social Security account. This allows beneficiaries to access the official government website themselves and check their status. As explained on the SSA website, this is a secure and convenient way to receive COLA notices online and save the message for later. Social Security also states that users “can opt to receive notices online instead of by mail when they log in or create a my Social Security account.”
