Safer ways to receive Social Security benefits

HOLDEN BEACH -- As a new North Carolina resident, I know this state has become a hot spot for retirees looking to settle in a warm and friendly location. As former commissioner of the U.S. Treasury Department's Financial Management Service, I also know North Carolina has become a popular target for financial criminals.

According to the Federal Trade Commission's most recent report on consumer fraud and identity theft, North Carolina has a high number of identity theft reports each year -- which means it's important for senior citizens and others who receive payments from the federal government to take precautions to protect their money.

For more than three years, Treasury's Go Direct campaign has been reaching out to senior citizens and other federal benefit recipients to inform them about the advantages of electronic payments. The campaign includes a broad network of partners from the public and private sector, including community-based and law enforcement organizations. These efforts in our state and across the country have helped more than 2 million people switch from paper check to direct deposit.

Despite these successes, North Carolina ranks seventh in the nation in terms of the volume of Social Security and Supplemental Security Income (SSI) benefits still being issued by check. Nearly 385,000 Social Security and SSI checks are still mailed to people in our state each month, including more than 76,000 in Raleigh.

I recently read an article on the North Carolina Division of Adult & Aging Services' Web site that outlined cases of identity theft. Earlier this year two people attempted to cash stolen Social Security checks at a grocery store about 50 miles outside Raleigh. Fortunately, they were apprehended, but the police found fake IDs and Social Security checks stolen from at least four other victims. This summer, the criminals were sentenced in the U.S. District Court for identity theft and theft of Social Security checks.

After spending much of my career at Treasury working to help people choose safer ways to get their federal benefits, I hate to hear about crimes involving paper checks. There's a safer and easier way for retirees to get their money -- electronic payment.

Direct deposit is simply the easiest and most secure, convenient and reliable way to receive federal benefit payments. Funds are automatically deposited to a person's bank account on the payment date. Direct deposit also helps protect against loss, theft or fraudulent endorsement of paper checks and provides greater protection against identity theft.

Additionally, the Treasury recently introduced a prepaid debit card for people without bank accounts as an alternative for those who receive Social Security and SSI payments by paper check -- including approximately 780,000 "unbanked" residents of our region of the country. These two electronic payment options, direct deposit and the Direct Express Debit MasterCard, are easy ways for Social Security recipients to protect their money.

Financial criminals are always on the lookout for new targets. Last year, across this nation approximately 700,000 Social Security paper checks were reported lost or stolen and had to be replaced. Whenever there is a problem with a payment, nine times out of 10, the problem is with a paper check, not a direct deposit.

This is a perfect time to protect your money by signing up to receive your federal benefits electronically.

Sign up for security

You can sign up for direct deposit by calling 1-800-333-1795 or by going online at www.GoDirect.org. Sign up for the Direct Express card by calling 1-877-212-9991 or visiting www.USDirectExpress.com.

(Ken Papaj is retired after working for the Treasury Department for over 34 years.)