MW Social Security Administration to cut phone service for direct-deposit transactions

By Jessica Hall

Account changes must be made either online or at a field office starting March 29

The Social Security Administration said Wednesday it is eliminating telephone service for direct-deposit account transactions.

The agency said the move is meant to eliminate the risk of fraud associated with changing bank-account information by telephone.

"[The Social Security Administration] continuously investigates and analyzes potential threats to strengthen and secure our programs and protect people who receive benefits," the agency said in a statement posted on its website. "Approximately 40% of Social Security direct-deposit fraud is associated with someone calling SSA to change direct-deposit bank information. SSA's current protocol of simply asking identifying questions by telephone is no longer enough to prevent fraud."

The Washington Post reported earlier Wednesday that the agency would cut its telephone service for claims-processing and direct-deposit transactions, and instead direct seniors and disabled individuals to online services and in-person field offices. The Social Security Administration provides benefits to more than 68 million people.

The changes will be effective March 29, according to a post on X from the so-called Department of Government Efficiency, headed by Elon Musk.

On X, the social-media company that is owned by Musk, DOGE posted: "@SocialSecurity is protecting our seniors by ensuring bank accounts aren't changed with little to no authentication."

To change bank-account information, a beneficiary will need to use two-factor authentication via their online Social Security account or visit a local Social Security field office. All other Social Security telephone services will remain the same, the SSA said.

Last summer, the agency informed the public that it was phasing out old usernames and passwords and needed all accounts updated to a new, more secure system.

Read: This is not a scam: Social Security needs you to update your account

The change to the phone service comes after the Social Security Administration announced a massive restructuring last month, with plans to cut about 7,000 jobs, or 12% of its workforce, and reduce the number of regional offices to four from 10.

The SSA has been under scrutiny from Tesla $(TSLA)$ Chief Executive Musk, who has claimed the agency is riddled with fraud, waste and abuse and has compared the Social Security program to a Ponzi scheme. DOGE has gained access to the SSA's data.

On Wednesday, senior-citizen advocates slammed the changes to the agency's telephone service.

"For the 70 million seniors, survivors, and people with disabilities who receive Social Security every month, access to Social Security services by telephone is essential," Richard Fiesta, executive director of the Alliance for Retired Americans, said in a statement. "Thousands of Americans rely on these phone services every day to file claims, get critical information, and manage their benefits. Forcing beneficiaries to visit field offices - which are already understaffed and being closed - or navigate an online-only system will create unnecessary barriers and hardships for those who need assistance the most."

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-Jessica Hall

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March 14, 2025 11:09 ET (15:09 GMT)

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