A SOCIAL Security beneficiary has run into issues receiving their benefits after the agency refused to make a crucial payment change.
The SSA barred them from making a direct deposit change following a controversial new regulation, forcing the recipient to wait two months to fix the issue.
The federal agency is taking strides to bump up its security and crack down on fraud, especially direct deposit fraud, which the SSA has said is often associated with changing bank account information over the phone.
The SSA is increasingly pushing for Americans to visit their local office in person, backpedaling on the availability for beneficiaries to make crucial account changes via phone.
Many recipients have taken issue with this change, including one beneficiary who aired their grievances in a Reddit post on Sunday.
They explained that they made an effort to redirect their Social Security direct deposits to a different bank account using the agency’s website, but the change was “refused.”
The user was directed to make an in person appointment, with the first available being in mid-October, roughly two months from now.
“Any insight as to why I can’t make that simple change online?” asked the inconvenienced beneficiary.
Fellow Redditors proposed a number of possible reasons behind the account issue.
One user noted that if the beneficiary was set to receive their Social Security payment the week of August 25 through 29, the agency may have blocked the change due to the impending deposit.
“They can’t update the system in the remaining time. I’ve read it can easily take 30 days to get updated,” said the Reddit user. “In which case, they might allow the change the week after.”
Another Redditor noted that anyone who receives SSI or SSI with retirement or SSDI cannot change their direct deposit information online.
“This is nothing new. If you have a direct deposit fraud block on your record, then you can not do it online,” they said.
The user also suggested that the bank that the beneficiary attempted to switch to could have played a role in the change being denied.
They explained that Social Security recipients are unable to add or change their direct deposit information for many online banks, such as Chime or Green Dot, either online or via the phone.
“There have been a high number of these online (not brick and mortar banks) that have been allowing too many fraudulent accounts to be created,” they wrote.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here’s how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
- 401(k) Plans
- A 401(k) is a retirement account offered through employers, where contributions are tax-deferred.
- Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings.
- Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.
- IRAs
- An Individual Retirement Account (IRA) offers another avenue for retirement savings.
- Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices.
- Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.
HANG UP
The SSA’s crackdown on fraud had resulted in a rollback of the agency’s over-the-phone services.
While the SSA would previously ask beneficiaries simple identifying questions over the phone, that is no longer the case.
Americans are now required visit an SSA office in person to make any changes to their direct deposit information if they are unable to verify their identity via their my Social Security account online.
To further ramp up its security, the SSA is rolling out a new optional authentication PIN feature for beneficiaries this month, allowing them to use a PIN accessed via their my Social Security account to authenticate their identity quickly and securely when they call SSA’s toll-free number.
Once they have received their one-time code, they provide the PIN to the customer service rep and can change their direct deposit information over the phone.
The agency’s emphasis on its secure my Social Security portal is reflected on the SSA’s webpage regarding how to update your direct deposit information.
Beneficiaries are either directed to update their bank information via their online account and potentially call the SSA to complete the task, make an in-person appointment, or request their bank to send their direct deposit information to Social Security.
PAPER PAINS
The SSA is rolling out another direct deposit change on September 30, 2025, affecting millions of beneficiaries.
An executive order from The White House confirmed that the US Department of the Treasury would no longer pay beneficiaries via paper checks.
The new regulation will be implemented as a means to reduce both fraud and high costs, with The White House noting that paper checks are roughly 16 times more likely to be reported lost or stolen.
The government will also save around $750 million by switching to direct deposit, per estimates from the US Treasury.
Beneficiaries must sign up for direct deposit or another electronic payment method by the deadline, otherwise they may face delayed distributions.
As the SSA cracks down on its rules, Americans are bracing for six big changes heading to Social Security in 2026.
Meanwhile, Social Security recipients will get a rare double payment with checks worth up to $5,108 coming in days.
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