Paper checks are going away this month (March, 2013). All social security transactions will be distributed electronically.
Recipients will have the option of a direct deposit transaction into a bank account or credit union or payment can be transferred to a Direct Express® debit card.
Savings in paper and postage are part of the reason for the switch, but also the idea that the transactions will be a safer more convenient way to distribute funds. Checks will not be stolen from mailboxes and recipients will not have to physically go to a bank in order to deposit.
While the new system is expected to save over $100 million dollars a year, thieves and scammers are adjusting to it as well devising new ways to get at your money.
Security for your computer, smart phones and other devices is tantamount. Fraudulent access to your accounts through hacking is one avenue for the bad guys. After procuring your personal information, they contact the social security administration and divert your payments to a different account.
It’s crucial that passwords to your account are lengthy and contain upper and lower-case letters, numerals and special characters.
There will always be people out there who try to scam you out of your hard earned money. It’s been that way since the beginning of time. New systems will bring new ways to scam, but with a little forethought, preparation and education, you can prevent many of these scams from occurring.