Social Security Administration Reverses Course on Identity Verification Requirements

The Social Security Administration has abandoned a controversial plan that would have eliminated phone identity verification for first-time retirement and survivor benefit applicants. The policy, which was set to take effect on April 14, was canceled just days before implementation following significant pushback from advocacy groups and lawmakers.

Under the now-canceled policy, new applicants would have been required to verify their identity either online through a “my Social Security” account or in person at a local field office. This would have ended the long-standing option to complete the entire application process by telephone.

“Those applying for retirement and survivor benefits can continue to use SSA’s phone services,” the agency clarified in an updated FAQ. However, the SSA added that calls “flagged as a potential fraud risk” would still trigger an in-person verification requirement at a Social Security office.

One restriction does remain in place: beneficiaries looking to make changes to their direct deposit information must do so either online or in person, with no option for telephone processing. This particular limitation is part of the agency’s enhanced fraud prevention efforts.

The policy reversal came after substantial criticism from organizations representing seniors and people with disabilities. Many argued the original plan would have created significant hardships for millions of Americans, particularly those with mobility issues or those living in rural areas far from field offices.

AARP had described the initial delay as “a good first step,” with Nancy LeaMond, the organization’s executive vice president, calling for “a deliberate approach” to customer service changes and “a reasonable timeframe” for implementation.

The Center on Budget and Policy Priorities, a left-leaning think tank, had published a report highlighting that visiting a field office would require “a 45-mile trip for some 6 million seniors nationwide.” The report also noted that many elderly Americans lack the technological access or skills needed to navigate online verification systems.

“More than 4 in 10 retirees apply for their Social Security benefits by phone, as do most spouses who are eligible for benefits,” wrote Kathleen Romig, the center’s director of Social Security and disability policy.

The SSA had initially framed these changes as necessary fraud prevention measures. Acting Commissioner Lee Dudek stated that the agency “is losing over $100 million a year in direct deposit fraud.” However, these figures represent a tiny fraction of the $1.5 trillion Social Security paid in benefits during fiscal 2024.

A February report from the SSA’s Office of Inspector General found that only 3% of overpayments, approximately $102 million annually, were attributed to fraud. The vast majority of overpayments – 72% – resulted from “beneficiaries who did not report or timely report information to SSA that negatively affected their benefits.”

Social Security beneficiaries should remain vigilant against scammers exploiting confusion around these policy changes. Reports indicate fraudsters have sent phishing emails and text messages asking recipients to click links to “verify their identity.” The SSA emphasizes that it does not initiate such communications.

In April, the SSA issued more than 68 million benefit payments, with the overwhelming majority distributed through direct deposit. Only about 500,000 payments were made by paper check, a method being phased out under a previous executive order calling for the elimination of federal government paper checks by September 30.

For current beneficiaries who don’t need to change their direct deposit information, no identity verification is required, and their benefits will continue uninterrupted.