WASHINGTON — The Social Security Administration (SSA) is tightening its security protocols in a bid to combat rising fraud, which has cost the agency over $100 million annually in direct deposit scams.
Starting March 31, 2025, millions of Americans will be required to verify their identities in person at SSA field offices, a move that will affect both new applicants and existing recipients needing to update their direct deposit information.
Previously, individuals were able to verify their identity over the phone or via the “my Social Security” online portal. However, under the new policy, individuals who cannot complete identity verification online will be required to visit a local SSA office to authenticate their identity in person.
This shift is part of a broader SSA initiative to enhance security and reduce fraudulent claims, particularly in light of the growing risks posed by the public availability of personal information.
Fraud Prevention and the Need for Change
Leland Dudek, the Acting Commissioner of the SSA, emphasized that the current methods of knowledge-based authentication were insufficient to prevent fraud, particularly as fraudsters grow more sophisticated. “As more personal information becomes publicly available, we are taking necessary steps to enhance the security of the system and protect beneficiaries’ funds,” Dudek explained.
The new identity verification policy is designed to bolster the integrity of the Social Security system by preventing fraudulent claims, ensuring taxpayer dollars are properly safeguarded. These actions come as part of a larger initiative to address vulnerabilities in the system.
Concerns Over Impact on Vulnerable Populations
While the policy aims to increase security, it has raised concerns among advocacy groups for retirees, people with disabilities, and those living in rural or remote areas. Critics argue that requiring in-person identity verification may disproportionately affect vulnerable populations, many of whom already face challenges accessing services.
The growing number of SSA office closures exacerbates these concerns. At least 47 SSA offices across the United States — including locations in Arkansas, Texas, Louisiana, and North Carolina — are set to close in the coming months, leaving many beneficiaries with fewer nearby options to complete required visits.
These closures, combined with the new verification requirements, could make it harder for those with limited mobility, lack of transportation, or difficulty navigating online systems to access essential services.
Rep. John Larson (D-CT), ranking member of the House Ways and Means Social Security Subcommittee, voiced his concerns: “Forcing people to travel to distant offices for identity verification while simultaneously reducing the number of offices available is a recipe for disaster. This will create chaos and disproportionately affect seniors, people with disabilities, and those with limited access to transportation.”
Expedited Direct Deposit Updates and Office Reductions
In addition to the in-person identity verification requirement, the SSA has announced it will expedite the processing of direct deposit updates. Requests to change direct deposit information will now be processed within one business day, a significant improvement from the previous 30-day waiting period. This expedited service aims to streamline SSA operations and improve the overall beneficiary experience.
However, these efforts come alongside plans for a 12% reduction in the SSA’s workforce, further complicating service delivery. Critics fear that this reduction, combined with the office closures and increased demand due to the new verification process, will place an even greater strain on SSA operations, making it more difficult for recipients to access timely services.
A Comprehensive Approach to Fraud Prevention
SSA’s new policy is part of a larger, coordinated effort to secure Social Security benefits and prevent fraudulent claims. As part of these efforts, the agency will also implement the Department of Treasury’s Bureau of Fiscal Service’s Account Verification Service (AVS), a tool designed to provide instant bank verification and proactively prevent fraud associated with direct deposit changes.
SSA’s plan includes a two-week transition period leading up to the March 31, 2025, enforcement date. During this time, SSA employees will be trained on the new policy, and the agency will closely monitor compliance.
For those unable to verify their identity online, the SSA recommends calling to schedule an in-person appointment to ensure the process is completed in one visit.
Looking Forward
Despite the SSA’s efforts to protect the system and its beneficiaries, the implementation of these changes is likely to present significant challenges, particularly for vulnerable populations. Advocates are urging individuals to check their online accounts and prepare for in-person visits, particularly as the March 2025 deadline approaches. While the SSA emphasizes the importance of these changes in safeguarding taxpayer funds, the true impact on beneficiaries will only become clear once the policy is in place.
For more information on SSA’s policy changes and their potential impact, recipients are encouraged to visit the official SSA website.
