Social Security Fraud Rampant; Threats to Privacy Increase » Publications » Family Security Matters

Social Security Fraud Rampant; Threats to Privacy Increase » Publications » Family Security Matters

In 1936, the Social Security Administration established the Social Security number to track worker's earnings for Social Security benefit purposes. Despite its narrowly intended purpose, the SSN is now used for a myriad of non-Social Security purposes. Today, SSNs are used, in part, as identity verification tools for services such as child support collections, law enforcement enhancements, and issuing credit to individuals.

Although these uses can be beneficial to the public, the SSN is now a key piece of information in creating false identities. The aggregation of personal information, such as SSNs, in large corporate databases and the increased availability of information via the Internet may provide criminals the opportunities to commit identity theft.

Although Congress and the states have enacted a number of laws to protect consumers' privacy, the public and private sectors' continued use of and reliance on SSNs, and the potential for misuse, underscore the importance of strengthening protections where possible. There is a significant concern by both liberals and conservatives over using the SSN as a de facto ID number and the Social Security card being used as a de facto ID card.

The public and private sector use of SSNs is widespread. Agencies at all levels of government frequently collect and use SSNs to administer their programs, verify applicants' eligibility for services and benefits, and conduct research and evaluations of their programs. Although some government agencies are taking steps to limit the use and display of SSNs, these numbers are still widely available in a variety of public records held by states, local jurisdictions, and courts.