Indentity

Is my Personal ID really safe?

You’re only as safe as you feel. An ounce of prevention is worth a pound of cure. In the United States it is estimated identity theft causes approximately $60 Billion dollars in losses every year. On average it takes an individual just over 600 hours to correct issues related to identity theft. That is almost one quarter of a standard work year. In other words, take 3 months off and don’t work your job. I’m sure your household income would be detrimentally impacted if you were to do so.

Arm yourself with the truth. Although encompassing more than just your social security number, once a thief has obtained it, they gain the keys to the identity theft kingdom. Always protect your personal information. Fill out those annoying forms you get in the mail from financial institutions. Make sure there is a fraud alert on your credit report at all three major bureaus. Shred all documents that have any link to your personal information. Most of all protect your social security number as if it were the crown jewels of the British throne. Always be skeptical of providing the number. Even if you believe it’s a legitimate inquiry, ask questions and be cautious.

In dealing with many customers and seeing first hand the impact of identity fraud, I was unaware of the rules governing use of a Social Security Number, or SSN. A review of the Social Security Administration regulations is eye-opening. Taken from the Administration web site at http://ssa-custhelp.ssa.gov there are guidelines as to when you must provide your SSN to any business or government agency.

Originally, the SSN was devised to keep an accurate record of each individuals earnings, and to subsequently monitor benefits paid. However, use of the SSN as a general identifier has grown to be the most commonly used and convenient method for all types of record keeping in the United States.

Specific laws require a person to provide their SSN for certain purposes. While not a comprehensive list, here are accepted purposes:

Anything to do with the IRS;

• Employment for wage and tax reporting;

• Banks for monetary transactions;

• U.S. Treasury for Savings Bonds issuance

• Most state agency benefits like issuing food stamps or a driver license;

• Student loans through the Department of Education.

Amazingly, many government workers are unaware the The Privacy Act regulates the use of SSN’s by government agencies. When a Federal, State, or local government agency asks an individual to disclose their SSN, the Privacy Act requires the agency to inform the person of the following: the statutory or other authority for requesting the information; whether disclosure is mandatory or voluntary; what uses will be made of the information; and the consequences, IF ANY, of failure to provide the information.

If a business or enterprise asks for your SSN, you can refuse. They do not have a right to it. However, that may mean doing without the purchase or service for which the number was requested. For example, utility companies and other services ask for a SSN, but do not need it; they can do a credit check or identify the person in their records by alternative means.

Giving your number is Voluntary, even when you are asked for the number directly. If requested, you should ask why your number is needed, how your number will be used, what law requires you to give your number and what are the consequences for refusal? Think of the many times a week someone casually asks for your SSN. Over the phone, at the bank, getting prescriptions filled, there is always someone listening.

A general guideline would be to consider the source. If they aren’t an identified governmental agency or an entity extending credit to you, you should probably refuse. It may be inconvenient at first but think about what would happen if the information fell into the wrong hands.

Let’s be careful out there.

If you would like more information, Robert Spiegel can be reached at 713-961-LEND [5363].