Social security payments going digital

Albany, NY (News10) — Starting today, the Social Security Administration will no longer issue paper checks for benefit payments.

Those eligible for social security will receive their benefits electronically. Payments will be directly deposited into their bank accounts — but they need to take a few steps first. According to BST & Co. Senior Tax Manager Jeremy Cole, ID.me is where “they would register for their social security, an online account, and they can input their bank account information to facilitate those electronic payments. Alternatively, instead of direct deposits, there are stored value cards or electronic wallets where you can have the payments transferred.”

Individuals can learn more by visiting the social security website. Cole says this move to electronic payments is meant to limit theft. 

“The IRS estimates that a paper check is about 16 times more likely to be lost or stolen in transit. And whether that’s sending payments to the IRS or receiving payments from the IRS, they’re trying to discourage that,” he said. “It also costs about $0.50 per paper check that the IRS issues, compared to about $0.15 per electronic payment issued.” 

Cole suggested connecting with a financial advisor with any questions, for assistance with registration, or other concerns with respect to complying with the electronic payments. 

The potential for fraud with the new change is concerning to Sarah Askew, a counselor with the NY Statewide Senior Action Council. She says social security will mail you through the postal service if they need to contact you.

“Don’t accept any phone calls because they’re not going to call you. If anybody’s calling you, hang up the phone. That is not Medicare, that is not Social Security,” she said. “Even if it says on your caller I.D., Medicare and Social Security, that is not Medicare and Social Security calling you, they will mail you information. That is a very popular scam.”

Askew urges loved ones to talk to their parents or grandparents about the change.

“Maybe if their family member doesn’t really understand what’s going on so that, you know, people know what’s happening and understand the changes,” she said. “And keep an eye on their mail, make sure they’re opening things.”

Waivers may be granted in certain cases, such as for those 90 or older, and people living with mental impairments or in remote geographic locations without access to electronic financial services. To apply for a waiver, call the U.S. Treasury Department, 855-290-1545.