Fraudsters often pose as other people to rob government assistance programs. In fact, the Federal Trade Commission reported a 3,000 percent increase in government-benefit-related identity theft complaints for 2020. Pandemic relief was the initial lure, but the problem continues. One failsafe tip to keep your identity out of the hands of thieves: Don’t fall for fake government agent calls, texts, or emails.
In March 2020, the first of three rounds of stimulus checks landed in the bank accounts and mailboxes of American taxpayers economically affected by the pandemic. According to the Pandemic Response Accountability Committee, more than 476 million payments totaling $814 billion were ultimately issued to individuals. Individual unemployment benefits got boosts, too.
Seeing a tsunami of cash, scammers flew into a panic, aiming to score off what they saw as a free-for-all money grab.
In fact, the Federal Trade Commission (FTC) reported that in 2020 alone, identity theft complaints related to government benefits increased by 3,000 percent.
Even after the pandemic pandemonium slowed down, government relief scammers remained on hyperdrive. Sadly, any government benefits program that pays out funds to claimants is at risk of scamming.
How government benefits fraud happens
Scammers use the identities and personal information of real people to get benefits. They access this information through various methods, including data breaches, criminal data brokers, the dark web, skimming devices, impersonation, and mailbox theft.
Once they have your information in hand, the scammers either hack into your existing benefit accounts to redirect funds or apply for benefits on your behalf. Commonly targeted programs include:
Death benefits
Disaster relief assistance
Food assistance programs, such as SNAP
Health insurance programs, such as Medicare and Medicaid
Housing and Urban Development (HUD) assistance
Internal Revenue Service (IRS) refunds
Social Security benefits, such as retirement and disability benefits
Veterans’ benefits
Unemployment insurance
Welfare benefits
How to detect government benefits fraud
The FTC suggests that everyone regularly monitor their accounts and credit standing to spot anomalies that might indicate fraud.
Look for missing bills. If you suddenly stop getting a credit card bill, someone may have changed your billing address and highjacked your account.
Study your bills and billing statements. Scan them for charges you never racked up.
Stay on top of bank statements. Watch especially for wayward withdrawals.
Monitor your credit reports. Keep an eye out for suspicious activity.
Stay on top of both your inbox and mailbox. Are you getting correspondence regarding programs you’ve not applied for?
What to do if you’re a victim of government benefits fraud
Once you’ve detected a scammer is using your information to steal benefits, you should act quickly. Because government benefits fraud is specialized, so is the reporting.
Report the fraud to the relevant agency (you can find an A-to-Z listing of federal agencies here). Visit your state government’s site for localized fraud.
Ask the agency what specific steps you need to take within their organization to report — and rectify — the fraud. If you receive benefits that have been compromised, ask what you should do to recoup your loss and reinstate regular payments (sometimes, the FTC notes, you must make an in-person visit to sort out the mess). Document the process, noting your contact names, numbers, sites, email addresses, and the information each gave you.
Report the crime to your local police, state attorney general’s office, and U.S. District Attorney's office.
How to prevent government benefits fraud
The first thing to prevent falling victim to government benefits fraud is to protect your information. The standard security protocols apply, such as:
Use strong passwords (like those generated by password manager apps) and change them regularly.
Enable multi-factor authentication on important online accounts.
Don’t voluntarily share personal information on social media, personal sites, or otherwise.
Use a VPN, stay off public Wi-Fi, and don’t share your hotspot.
Remove address labels and shipping bills from boxes you leave outside for recycling.
Take identifying labels off prescription bottles and boxes before recycling them.
Use EBT cards at major stores and grocers. The security surrounding the card readers of national chain stores tends to be sounder (and more closely monitored) than that of smaller, privately owned shops.
How to spot fake government representatives
Next, never voluntarily give your personal information to a government agent impersonator.
Government impersonators often use fear tactics to extract personal information. Remember, real government agents never threaten or bully those they contact. They don’t say they will deport you, evict you, or otherwise.
They don’t work with cash gift cards or demand personal information in exchange for urgent issues. They don’t ask you to keep conversations and interactions confidential.
Because government agencies use regular mail for official correspondence, old-fashioned safeties may be needed. Ensure your home mailbox is secure; if it’s not, use a post office box. Shred unneeded government correspondence rather than throw it into the trash.
When it comes to phone calls, texts, and emails, the IRS and other agencies only text and email you if you have opted into these services. If you get a text or email with a link and are unsure of the source or author, go to the agency’s site and call the help number to verify the letter’s authenticity.
Government agencies call only after an account and/or claim has been fully established. Someone calling from an agency out of the blue is likely a scammer.
Fighting government benefits fraud
“Every case of identity fraud has three potential victims: the person whose identity is used to steal benefits, the person whose benefits are stolen, and the American taxpayer,” Pandemic Response Accountability Committee