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Your Social Security Number

Understanding you Social Security Number

Identity Safeguards © July 2004

Nearly 70 years ago, Social Security Numbers were introduced by the US government to track individual incomes and pay retirement benefits. Over time, those nine digit numbers have grown immensely in importance. In 1943 President Roosevelt signed an order which required federal agencies to use Social Security Numbers as unique identifiers when creating new record keeping systems. In 1961 the IRS expanded the use of the numbers when it began to use them as a tax payer IDs. Unfortunately, there were never any definitive laws established to limit their use in private industry and as a consequence, many retailers, creditors, insurance providers, and hospitals adopted Social Security Numbers as unique identifiers.

Currently, there are two major problems with the way Social Security Numbers are being used in the private sector. First, many organizations use your Social Security Number as a password for web and phone transactions. Often, to obtain crucial account information, you are only asked for the last 4-digits of the number. It’s not difficult for someone who knows your number to assume your identity in these situations. The second problem is that many organizations you do business with use your Social Security Number as an ID. Banks, hospitals, brokers and others view it as a convenient identifier. Names and addresses can change, but your Social Security Number remains the same. Having your number in the hands of so many organizations makes it difficult to keep it private.

Surprisingly, the Social Security Administration has no legal authority to keep anyone from asking for your number. Nor can they control what someone does with it once they get it. Individuals must be extremely responsible with their Social Security Number, understand their rights and take the appropriate measures to protect it.

Here are a few tips to protect the key to your identity:

• Don’t carry your Social Security Card in your wallet. You don’t need to have your Social Security Card with you at all times. Keep it at home in a safe place. Check for other cards that may have your SSN on them.
   
• Never print your Social Security Number on your checks.
   
• Review you Social Security Personal Earnings statement. This is mailed to you each year about 3-months before your birthday. To obtain a report call 1-800-772-1213.
   
• Ask questions when they ask for your Social Security Number. There is no law that prevents businesses from asking for your SSN. And you may be denied service if you don’t give the number. Insist to review the company’s written policy on how they plan to use your number.
   
• If your employer releases or displays your Social Security Number, request that they use a different number.
   
• Request that your bank use a different PIN number to access account information.

Remember, for thieves, your Social Security Number is the Holy Grail of your personal and financial identity. It is critical that you take the appropriate actions to ensure that it doesn’t fall into the wrong hands.