Scammers are using this year’s COLA increase to trick retirees
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Every year brings new ways for criminals to twist good news into bad intentions, and this time is no different.
While many are looking forward to long-awaited financial relief, others are quietly preparing to take advantage of that optimism.
The latest schemes play on people’s trust, using familiar names and official-sounding messages to create false urgency.
What seems like a routine update could instead be a calculated attempt to steal personal information or money.
Fraud experts are warning that Social Security scammers are now using the upcoming cost-of-living adjustment, or COLA, as bait to trick beneficiaries into revealing sensitive data.
They’re claiming people must pay a fee or provide information to receive their 2.8 percent increase, according to Mary Miller, senior adviser to the Social Security Administration’s Office of the Inspector General.
“It’s worked in the past, and [scammers] tend to revisit tactics that have worked in the past,” she says. Miller explains that past scams have included messages directing people to pay $100 or click links to fake SSA websites that look almost identical to the real one.
Beneficiaries are urged to ignore, delete or report any messages asking for payment or information related to the COLA increase.
“The COLA is automatic. There’s no need to take action,” Miller says. “A scammer might seem helpful, like they’re trying to be supportive, when in reality they’re really just trying to steal.”
The increase will automatically appear in January payments for retirees, survivors, and those with disabilities, while Supplemental Security Income recipients will see the boost starting Dec. 31.
Social Security–related scams remain among the most common forms of government impostor fraud, according to the Federal Trade Commission.
In just the first half of 2025, about 30,000 such scams were reported to the SSA’s inspector general, though experts say the real number is much higher.
Many of these scams rely on threats of lost benefits, seized assets, or even arrest to push victims into sending money.
“They may say this will keep your money safe, secure your identity, clear your name, or help catch the criminals,” the FTC warned, adding that the entire story is always a lie aimed at draining victims’ accounts.
Also read: Before you give: Holiday charity scams are targeting generous retirees
The SSA has also alerted the public about fake letters using fraudulent US Supreme Court letterhead, complete with forged signatures of two justices.
These letters claim the recipient is under criminal investigation and must respond immediately. “On every level this letter is completely false,” says Michelle L. Anderson, the SSA’s acting inspector general. “If you get this type of letter, rip it up and report it.”
Experts say scammers follow current events to craft believable stories that prey on fear and excitement. Clayton LiaBraaten of Truecaller notes that criminals “take advantage of people’s concerns by crafting scams that seem to offer relief, such as fake government aid or financial support offers.”
He adds that scammers look for “emotional triggers, like the excitement of a COLA increase, to manipulate victims into acting quickly.”
They also use data-driven methods to identify likely targets, relying on public records, social media and data breaches.
Jennifer Pitt, a cybersecurity analyst with Javelin Strategy & Research, says artificial intelligence tools have made it harder than ever to detect fraudulent messages.
“There are a lot of scams going on with Social Security, where it will look completely legitimate. It might be the exact [SSA] logo,” she says.
Pitt never gives personal information to anyone who contacts her and advises others to do the same. If there’s concern about a real issue, she says, contact the SSA directly using information from ssa.gov.
The SSA reminds the public that its representatives will never pressure beneficiaries to pay fees, transfer money, or share financial details. Miller stresses that reporting scams helps the agency identify patterns and prevent future crimes.
“We use [that information] to identify something that might be new or something that might be trending in the wrong direction,” she says. “And we try to get ahead of it so that people don’t lose money.”
Also read: Don’t let holiday cheer turn into a scam—simple ways to stay safe this season
The agency’s Office of the Inspector General offers several practical ways to avoid falling victim. Always pause before reacting, as scammers rely on panic to force quick decisions.
Avoid clicking links or sharing information with unknown senders, and never pay anyone claiming to be from the SSA through gift cards, cryptocurrency, or wire transfers.
Report suspicious calls and block them through your phone provider to help reduce future attempts.
Read next:
Staying alert and informed can go a long way toward protecting your money and identity. Simple steps like pausing before you respond, verifying contact information, and reporting fraud attempts can make a real difference. These scams rely on fear and confusion, but awareness is the best defense. Have you received a suspicious message about your benefits lately, and what steps would you take to stay safe?
While many are looking forward to long-awaited financial relief, others are quietly preparing to take advantage of that optimism.
The latest schemes play on people’s trust, using familiar names and official-sounding messages to create false urgency.
What seems like a routine update could instead be a calculated attempt to steal personal information or money.
Fraud experts are warning that Social Security scammers are now using the upcoming cost-of-living adjustment, or COLA, as bait to trick beneficiaries into revealing sensitive data.
They’re claiming people must pay a fee or provide information to receive their 2.8 percent increase, according to Mary Miller, senior adviser to the Social Security Administration’s Office of the Inspector General.
“It’s worked in the past, and [scammers] tend to revisit tactics that have worked in the past,” she says. Miller explains that past scams have included messages directing people to pay $100 or click links to fake SSA websites that look almost identical to the real one.
Beneficiaries are urged to ignore, delete or report any messages asking for payment or information related to the COLA increase.
“The COLA is automatic. There’s no need to take action,” Miller says. “A scammer might seem helpful, like they’re trying to be supportive, when in reality they’re really just trying to steal.”
Scammers are using this year’s COLA increase to trick retirees. Image source: Glenn Carstens-Peters / Unsplash
The increase will automatically appear in January payments for retirees, survivors, and those with disabilities, while Supplemental Security Income recipients will see the boost starting Dec. 31.
Social Security–related scams remain among the most common forms of government impostor fraud, according to the Federal Trade Commission.
In just the first half of 2025, about 30,000 such scams were reported to the SSA’s inspector general, though experts say the real number is much higher.
Many of these scams rely on threats of lost benefits, seized assets, or even arrest to push victims into sending money.
“They may say this will keep your money safe, secure your identity, clear your name, or help catch the criminals,” the FTC warned, adding that the entire story is always a lie aimed at draining victims’ accounts.
Also read: Before you give: Holiday charity scams are targeting generous retirees
The SSA has also alerted the public about fake letters using fraudulent US Supreme Court letterhead, complete with forged signatures of two justices.
These letters claim the recipient is under criminal investigation and must respond immediately. “On every level this letter is completely false,” says Michelle L. Anderson, the SSA’s acting inspector general. “If you get this type of letter, rip it up and report it.”
Experts say scammers follow current events to craft believable stories that prey on fear and excitement. Clayton LiaBraaten of Truecaller notes that criminals “take advantage of people’s concerns by crafting scams that seem to offer relief, such as fake government aid or financial support offers.”
He adds that scammers look for “emotional triggers, like the excitement of a COLA increase, to manipulate victims into acting quickly.”
They also use data-driven methods to identify likely targets, relying on public records, social media and data breaches.
Jennifer Pitt, a cybersecurity analyst with Javelin Strategy & Research, says artificial intelligence tools have made it harder than ever to detect fraudulent messages.
“There are a lot of scams going on with Social Security, where it will look completely legitimate. It might be the exact [SSA] logo,” she says.
Pitt never gives personal information to anyone who contacts her and advises others to do the same. If there’s concern about a real issue, she says, contact the SSA directly using information from ssa.gov.
The SSA reminds the public that its representatives will never pressure beneficiaries to pay fees, transfer money, or share financial details. Miller stresses that reporting scams helps the agency identify patterns and prevent future crimes.
“We use [that information] to identify something that might be new or something that might be trending in the wrong direction,” she says. “And we try to get ahead of it so that people don’t lose money.”
Also read: Don’t let holiday cheer turn into a scam—simple ways to stay safe this season
The agency’s Office of the Inspector General offers several practical ways to avoid falling victim. Always pause before reacting, as scammers rely on panic to force quick decisions.
Avoid clicking links or sharing information with unknown senders, and never pay anyone claiming to be from the SSA through gift cards, cryptocurrency, or wire transfers.
Report suspicious calls and block them through your phone provider to help reduce future attempts.
Read next:
- Beware this holiday season: Scammers are impersonating your loved ones—and they sound just like them
- The scammers' favorite season is here: How to protect yourself during Medicare open enrollment
