Social Security Administration raises alarm over $600 stimulus payment increase scam

Scam targets included recipients of SSI and SSDI stimulus payments.

The Social Security Administration (SSA) has issued a warning about a scam falsely claiming Social Security recipients will receive a $600 payment increase or a new stimulus check this month. This misinformation led to over 463,000 calls to the SSA in a single day. "Reports of a $600 payment increase are FALSE, please be aware and don’t fall for this stunt," said SSA Commissioner Martin O’Malley.

Social Security-related scams are the most prevalent government imposter scams in the U.S., with consumers losing more than $126.5 million last year, according to the Federal Trade Commission (FTC).

Gail Ennis, the SSA’s Inspector General, emphasized that legitimate cost-of-living adjustments (COLA) are automatic and do not require additional information from beneficiaries.

The annual COLA for 2025 will be announced in October, with changes reflected in checks starting January 2025. The latest estimate from The Senior Citizens League projects a 2.57% increase, though this figure is subject to change based on the inflation rate from July to September. For June, some Social Security payments were adjusted due to scheduling conflicts, such as the Supplemental Security Income (SSI) payments sent a day early because June 1 fell on a Saturday. This adjustment did not result in extra payments. The SSA urges recipients to stay informed by checking official communications and to be wary of misinformation.

How the 2024 COLA Affects Social Security Disability Benefits

Rising prices and wages change payments, income rules for SSDI and SSI beneficiaries.

Social Security’s annual cost-of-living adjustment (COLA) provides beneficiaries with a hedge against rising prices, affecting all beneficiaries, including those receiving disability payments. Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) recipients will see a 3.2 percent increase in their monthly benefits in 2024.

The COLA tracks changes in consumer prices and applies to benefit amounts. SSDI benefit amounts will increase, with the average monthly benefit for a disabled worker rising by $48, from $1,489 to $1,537 in January. SSDI recipients can earn up to $1,550 a month from work without risking their benefits, up from $1,470 in 2023. The cap for blind beneficiaries will increase to $2,590 a month.

SSI federal payments, funded by general U.S. tax revenue, will also rise. The maximum federal payment to an individual SSI recipient will increase from $914 to $943 a month, while a married couple will receive up to $1,415, up from $1,371.

The COLA also impacts younger people receiving SSI due to disability or blindness, allowing them to earn more from work without it counting against their benefits. In 2024, the “student earned income exclusion” increases to $2,290 a month, up to an annual maximum of $9,230.