Social Security Introduces PIN Option, Ends Paper Checks

The Social Security Administration announced that it will debut a security authentication PIN feature in August and is phasing out payments by paper check, starting September 30. Both measures attempt to provide recipients with enhanced security and mitigate fraud and identity theft risks.

The PIN feature is intended to make the identity verification process “faster and more secure” when a recipient contacts the SSA over the phone, according to the agency’s announcement. The feature is optional, and for those who do not use the PIN, they would continue to use the current authentication process.

“The primary goal of the enhanced SAP feature is to improve both the security and speed of service,” the agency stated. “With increasing concerns about identity theft and fraud, we’re taking proactive steps to ensure that your personal information remains protected. At the same time, we recognize the importance of making interactions as efficient as possible.”

According to the announcement, in addition to the added layer of security, the PIN feature can reduce call times by approximately three minutes, which would be a 30% reduction in the current average call length.

Meanwhile, the agency also announced it will, in September, phase out paper checks for benefit payments, opting instead for electronic payments. According to the agency, the end of paper checks will affect fewer than 1% of recipients, or nearly 700,000 people.

This change is not optional, but recipients can apply for a waiver to continue receiving paper checks. According to the agency, the electronic payment approach will save money, since each paper check costs the SSA about 50 cents, whereas an electronic funds transfer costs less than 15 cents each, and funds are more quickly transferred.

Transitioning to fully electronic payments also protects against fraud, according to the agency, since “paper checks are 16 times more likely to be lost or stolen compared to electronic payments.”

In March, the SSA announced it would no longer allow retirees to complete claims entirely over the phone, but after swift opposition, the agency reversed its decision two weeks later.