The move will take checks out of the equation and replace the archaic system with direct deposit. Currently 85% of beneficiaries get Social Security monies through bank direct deposits. The measure was introduced to prevent check fraud as a consequence of stolen checks. It will also help the government reduce the cost associated with issuing replacement checks.

It is estimated that the Treasury department will save over $1 billion within a ten year time frame by eliminating the paper check system. Additionally benefit recipients will receive their monthly payments in a safer, more efficient manner. It is also estimated that 12 million pounds of paper will be saved in the first five years which is good news for the environment as a whole.

For those still eligible to receive checks (about 10 million), they will have a two year window to make the change from paper checks to electronic deposits and all accounts will receive direct deposits effective March 1, 2013. The monies being deposited will be accessible on the payment date of each month with no wait for the US postal service to deliver their checks.

In light of the various identification scams and check cashing frauds, the direct deposit method may be the ideal tactic to keep benefit recipients safe from identity theft and other fraudulent hassles.

Social Security Adminstration Plans to Eliminate Paper Checks was created by and is property of American Consumer News.

If you qualify for this special payment you should know that no action is required on your part to secure your payment. This means you do not have to fill out any applications, forms, or pay any fees to process your payment. Scammers are sending out mass emails hoping to find someone who will take the bait and provide them with personal information that will be undoubtedly be used to perform identity theft or credit card fraud. Similar to other email scams found in your inbox, this scam claims to have “urgent news” regarding your stimulus payment. Consumers unaware of this scam may be tempted to click on a link provided which will then direct them to a bogus website. Unfortunately email scams have become quite sophisticated in that con artists are able to create websites that look like the real thing. In this case the website will look very much like a government website which may lead individuals to disclose personal information such as bank account numbers, date of birth or social security numbers. The best way to avoid being victim of a scam is to never disclose sensitive information in response to unsolicited correspondence.

The following information provides answers to commonly asked questions regarding this one time payment.

• Eligible individuals include certain individuals who receive Social Security or SSI, Railroad Retirement or Veterans benefits. To qualify for the payment you must have been eligible for benefits in the final two months of 2008 or January of 2009 with an address of record in one of the 50 states or its territories.
• As previously stated there is no action required on your part to receive this payment. Eligible individuals should receive the payment by the end of May 2009 in the standard form they usually receive benefits (direct deposit or paper check). The payment will be seperate from your regular benefit payment and consumers are urged to not contact the Social Security Administration regarding your payment unless you have not received it by June 4, 2009.
• This economic recovery payment will not count as income or earnings for Social Security disability benefits.
• Individuals will only receive this payment one time. This means if you receive more than one type of qualifying benefit you will only get one $250 payment, not one payment for each benefit you currently receive. If both you and your spouse however collect benefits you will each receive one payment.

No Action Needed To Receive Social Security Stimulus Check was created by and is property of American Consumer News.