The Social Security Administration’s Office of the Inspector General says the 2027 cost-of-living raise is automatic, and no one has to pay to receive it. In an alert dated October 21, 2026, the watchdog warned that scammers are using the increase to pitch fees to “activate” it or to raise a payment. The raise applies to 76 million Americans, which is why the callers are working it now.
For anyone asking how to avoid losing money here, the alert’s answer is simple: nothing has to be done to get the 3.6 percent increase, so any caller, text or letter that says otherwise is a red flag. The inspector general’s alert lists three demands to watch for: paying a fee, changing direct deposit, or sharing personal or financial information. Anyone who gets one of those requests should stop and contact the agency directly.
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What the raise actually is
SSA announced the 3.6 percent increase on October 14, 2026. The agency says retirement benefits will rise by about $75 a month on average, and Social Security increases begin in January 2027. Increased SSI payments begin December 31, 2026.
Commissioner Frank Bisignano said Social Security “will implement this cost-of-living adjustment for 76 million Americans.” The increase is applied by the agency to each benefit, with no application, no activation step and no charge, and anyone with a my Social Security account can see the new amount in their online notice.
What the callers are saying
The inspector general says scammers reach people by phone, text, email, social media or mail while posing as Social Security or another government agency. They claim they can increase payments or activate the cost-of-living raise, and they may demand a fee.
Other demands in the alert are a request to change direct deposit and a request for personal or financial information. A changed direct deposit can send a monthly payment to an account the scammer controls, so a request to switch banks over the phone is one more reason to hang up.
How scammers make it look real
The alert says scammers may send official-looking links or urge people to download software. They can also use the names or titles of real Social Security employees, or send fake documents.
Because the details can look convincing, the inspector general’s advice does not rest on spotting a fake. It is to be skeptical of any unexpected call, text, email, social media message or letter, and to verify through a channel the person chose, not one the contact supplied.
How to check a call or message
- Find an agency’s official contact information at America.gov and call the agency directly.
- Create a my Social Security account at ssa.gov/myaccount, which the inspector general says helps prevent misuse and lets a person manage benefits.
- Follow SSA OIG on Facebook, Instagram, LinkedIn and X for new scam warnings.
SSA says notices of the new amount appear online in late November for people with a my Social Security account, and paper notices arrive by mail in December. That is the normal way to learn the exact increase.
Where to report a scam
Suspected Social Security scams can be reported at ssa.gov/scam. The inspector general’s Fraud Hotline is 1-800-269-0271, open Monday through Friday from 10 a.m. to 2 p.m. Eastern time.
The alert gives no dollar figure for losses tied to this wave. The open question for anyone who has already paid a fee or given out a bank account number is what to do in the first hour, and the hotline and ssa.gov/scam are where the agency says to start.
Already got a call about activating the raise?
A caller who pushes a fee to “activate” a raise that is already automatic, or asks for a new direct deposit, is going after the payment itself. Fees and bank details handed over on a call are hard to get back, which is why the first hour after a scam call matters most.
The Senior Fraud Defense & First-Hour Recovery Kit includes the free credit-freeze steps, the first-hour recovery plan and a fraud evidence and report log. The kit is built for the moment after a suspicious call, when personal information may already be out.
More Financial Reading
- 21 Ways to Stretch a $2,087 Social Security Check
- 15 Places to Find Your Share of the $4.25 Billion States Give Back
- 15 Steps to Stop the Scams That Took $7.7 Billion From Seniors
This article was produced with AI assistance and edited for accuracy against the sources linked above.
