Just read an article this week that these scams are being used more than the old IRS scam, probably because people have finally wised up to the IRS scam.
The whole concept is ridiculous - the SSA doesn't call you unless you're already working with them on an issue, and local law enforcement has no authority to cancel an SSN. But some people fall for it, so that's why they do it.
I don't recall the title of the article I read, which has more info about this, but I was able to find the AARP article it was based on:
http://tinyurl.com/y5julwy5
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