00:00A significant change is coming for nearly half a million Americans who still receive
00:04Social Security and SSI benefits by paper check. Get ready to transition to electronic
00:09payments, as a federal mandate is set to revolutionize how benefits are dispersed.
00:15An executive order, modernizing payments to and from America's bank account,
00:19signed in March by President Donald Trump, mandates that all federal payments must be
00:23made electronically after September 30, 2025. This includes Social Security, SSI, disability
00:30benefits, vendor payments, and even tax refunds. Currently, 493,775 payments, or 8.7% of all
00:40benefit disbursements, are still issued via physical check across the U.S. and its territories.
00:46This shift aims to combat large-scale mail theft and rising fraud, which surged during the COVID-19
00:52pandemic. The Treasury Department reports that paper checks are 16 times more likely to be lost,
00:58stolen, or altered compared to electronic funds transfers. The move to a fully digital system
01:04promises significant cost savings and efficiency gains. However, this transition presents logistical
01:11challenges, particularly for vulnerable recipients. Critics worry it could disproportionately affect
01:17seniors who lack digital access or confidence with online banking, especially given recent
01:22cuts to digital equity funding. Without expanded support programs and multilingual outreach,
01:28there's concern about beneficiaries missing payments and increased customer service issues.
01:33So, how can beneficiaries who still rely on paper checks prepare for this change?
01:38First, consider using my Social Security online. You can enroll for direct deposit and check your
01:45payment status there. It's vital to keep your personal information, including addresses and payment
01:50details up to date on SSA. Gov. Second, be highly aware of fraud. The SSA urges vigilance against fraudulent
01:59communications about payment changes. Remember, either the SSA nor the Treasury will ever ask you for payment
02:06to set up or expedite your benefits. Finally, if you face undue barriers to digital payments, you can report
02:13hardship. Contact the SSA or the Electronic Payment Solution Center to discuss alternatives or apply for an
02:20exemption. Special circumstances, like lack of banking access or emergencies, may allow for non-digital
02:27payments, but these are evaluated case by case. The SSA aims to complete this digital payment transition by
02:34September 30, 2025. Stay informed, update your information, and monitor official communications
02:41for further guidance. Money Explainers
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