2. The Benefit Increase Fee Trap

Every fall, the government announces the annual Cost of Living Adjustment (COLA) for the upcoming year. While this increase helps retirees keep pace with inflation, it also provides criminals with a predictable news cycle to exploit.

How the Scam Works

Fraudsters reach out via email, direct mail, or telephone, claiming to be from a “Social Security processing center.” They congratulate you on your upcoming benefit increase but introduce a catch: they claim you must submit an application or pay a processing fee to activate the higher monthly payment. They may ask for a credit card number to cover this supposed fee, or they might request your banking details, claiming they need to update your direct deposit profile to accommodate the larger transfer.

How to Protect Yourself

The annual Cost of Living Adjustment is universally automatic. You do not need to apply for it, you do not need to sign any new paperwork, and you absolutely never have to pay a fee to receive it. The government simply updates your payment amount automatically starting with your January benefit.

If someone asks you for money to unlock a larger benefit check, you are dealing with a criminal. Delete the email, shred the letter, or hang up the phone. Keep in mind that legitimate communications regarding your benefit amount will arrive via secure messages in your online account or through official government letters sent via the U.S. Postal Service.