Social Security Administration backs off plan to cut phone service

With less than a week to go before a deadline that the Social Security Administration set to end phone support for certain customer service needs, the agency braked and hit reverse.

The controversial plan to crack down on customer service for anyone applying for new benefits or checking benefits was set to start April 14, ending phone service support for retirees and survivors applying for benefits or for beneficiaries making direct deposit changes.

The clamp down on telephone access was ostensibly aimed at curbing identity fraud in which scammers call the agency impersonating a beneficiary and have benefits redirected to their own bank account. The new rule required anyone applying for new benefits or checking benefits to first verify their identity online or make an appointment at one of the agency’s field offices.

The changes set off alarm bells among seniors, disabled people, advocates and some lawmakers for creating roadblocks, especially to those in rural areas without reliable internet service or who lack computer skills.

“Many seniors and people with disabilities lack internet service, computers or smartphones, or the technological savvy to navigate a multistep, multifactor online verification process,” said Kathleen Romig, director of Social Security and Disability Policy at the Center on Budget and Policy Priorities.

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More than 4 in 10 retirees apply for their Social Security benefits by phone, as do most spouses who are eligible for benefits, according to a CBPP report. The majority of family members who are eligible for survivor benefits following a death also apply by phone.

An internal Social Security memo says eliminating phone service would require 75,000 to 85,000 more people per week to visit an office — over 4 million annually. The CBPP estimates that some 6 million seniors live at least 45 miles from the nearest Social Security office.

With the course correction, beginning on April 14, SSA will allow all claim types to be completed over the phone, a White House official told Yahoo Finance on background.

“Because the anti-fraud team implemented new technological capabilities so quickly, SSA can now perform anti-fraud check on all claims filed over the phone,” the official said.

The new software allows the SSA to flag abnormal behavior in a person’s account. Individuals who have been flagged would be required to perform in-person ID proofing for the claim to be further processed.

“President Trump has repeatedly promised to protect Social Security and uproot waste, fraud, and abuse across the federal government,” according to Liz Huston, a White House spokesperson.