Money Smarts Blog

Big changes are coming to how the federal government sends out money and scammers are already trying to take advantage.

Under Executive Order 14247, most federal disbursements (like Social Security, tax refunds, veterans’ benefits, and more) will move to digital payment methods only beginning September 30, 2025. That will mean no more paper checks in the mail. While this change is meant to streamline payments and reduce fraud, it’s also created a fresh opportunity for scammers. This is especially true for folks who aren’t super tech-savvy or don’t have a trusted financial institution.

What scammers might do

Fraudsters are already gearing up to trick people into giving up their personal and banking info by pretending to “help” them make the switch to digital payments. They may:

• Claim you need to open a new account to continue receiving benefits
• Ask for your online banking username and password to “complete the setup”
• Send fake texts, emails, or calls pretending to be from the IRS or Social Security
• Charge bogus fees to “assist” with your transition to digital

They’re especially targeting older adults, those without bank accounts, and those who still receive paper checks for things like Social Security or tax refunds.

How to protect yourself (or your loved ones)

• Never share your online or mobile banking credentials. No government agency or financial institution will ask for your log-in info… EVER.
• Ignore pressure tactics. If someone says you need to act “right now,” it’s likely a scam.
• Use official channels. Only make changes to your direct deposit info through trusted sources like SSA.gov or IRS.gov, or talk directly with a team member at IHMVCU.
• Watch for suspicious emails, calls, or texts. If something feels off, it probably is.

Need help switching to digital safely?

We know this transition can feel overwhelming, especially if you’re used to paper checks. That’s why we’re here to help. Whether it’s opening an account for direct deposit or setting up online banking, our team is ready to walk you through every step.

Remember, we’ll never ask for your log-in credentials or personal info over the phone or by email. And we’ll always give you straightforward support, no strings attached.

And while you’re here, take a moment to visit our Fraud: Shield Yourself page for the latest scam alerts and practical tips to protect your money.

Digital payments might be the future but staying safe is always the priority.

Have questions? Give us a call at 309-793-6200, chat with us, or visit a branch.