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[S666]Social Security Number Identity Theft

by Lisa Carey, Lis

Why would anyone steal your identity just to get a job? For many reasons, for example some people are in the United States illegally and do not have a social security number. Some people can not pass background checks, or have a criminal background that would keep them from getting jobs. Whatever the reason, Social Security Numbers are hot merchandise, if yours can be gotten, it can be sold.

“Misuse of another individual's SSN is a violation of federal law and may lead to fines and/or imprisonment and disregarding the work authorization provisions printed on your Social Security card may be a violation of federal immigration law. Violations of applicable law regarding Social Security number fraud and misuse are serious crimes and will be prosecuted.” According to the Social Security Administration, The crime is considered a felony under federal and state laws and may result in fines and imprisonment.

In order to determine if there has been any use of your SSN to obtain employment, it is important to review your W-2 each year to determine that your social security benefits are being accurately reported and that the correct SSN is being used. Next, review your Social Security Statement issued to you each year. Check your statement against your W-2 to determine if there are any discrepancies. One way of determining if your SSN has been used illegally will be by monitoring the information on you benefits statement; which may state that benefits have been accessed or that the amount paid in maybe greater than the number reported on your W-2. To obtain a copy of your Statement of Benefits you may call the SSA toll-free at 1-800-772-1213.

Are you responsible for the taxes on the wages resulting from someone being illegally employed? Probably not, and the taxes are paid directly through the employer. As a result that money is just sitting in an account held by the federal government.

What about Social Security Benefits? What happens to the money paid in through two people employed and using the same social security number? It is estimated that approximately 420 billion dollars in federal funds are sitting in “limbo.” The government calls this the Earnings Suspense Fund. The money has been paid in, but there is no one to credit the funds or benefits to. This is because in many cases the user of your social security number is also using either their own name, or a fake name. The only people that benefit from this extra payment are the federal government as well as the imposter who is able to be employed. Each government agency (IRS and SSA) have a list of mis-matched numbers, that don't belong to the names that are using them, so what are they doing about it?

Illegal use of your SSN is very difficult to find out about, unless you happen to apply for a job at the same place, or if they are also using it for theft of your credit information.

If after reviewing your benefits and wages information you are suspicious, take the next steps. Request a credit report to see if credit has also been obtained using your identity. If so, it is time to move quickly in order to rectify the errors in your employment, social security and credit history.

If you determine that your social security number has been compromised, you must contact the Social Security Administration and report it. Reports are made to the Social Security Administration (SSA) Office of the Inspector General. You may file a complaint online at www.socialsecurity.gov/oig, call toll-free: 1-800-269-0271, fax: 410-597-0118, or write: SSA Fraud Hotline, P.O. Box 17768, Baltimore, MD 21235.

Can you get a new social security number if you suspect that your number has been used? Maybe, but not always. The SSA will not issue a new number in the following circumstances: it was lost or stolen and no proof of damage has occurred, you are trying to avoid detection of poor credit or a criminal record, or you are trying to avoid some form of legal responsibility. However it is up to you to prove to them that your number is being used illegally, that you are not attempting to avoid credit collection or any other actions possibly pending against you.

Be proactive and try to protect and repair the damage yourself. File a report with the Social Security Administration, Federal Trade Commission and the three major credit agencies. However, without the issuance of a new Social Security Number, you are still at risk so you may want to consider using all the credit protection available to you such as placing fraud alerts on your credit report, credit freezes and consistent monitoring of your credit report. To report Identity Theft you may contact the Federal Trade Commission via telephone 1-877-438-4338.

You may find it necessary to consult with an attorney to protect your current and future benefit rights. Know your rights and stand up for them. Credit lenders or collection agents may attempt to threaten you or force you to pay for outstand debts incurred by use of your information. Consult with law enforcement officials, an attorney, the State's Attorney General and consumer credit counseling organizations to determine what your rights and responsibilities are and you can assert them.

With identity theft on a continued advance upward and noted as the number one white collar crime in America today a popular option is for consumers to shut down (lock) access to their credit reports. This makes it nearly impossible for some criminal intent to reek financial havoc on an individuals well being and the process is known as a security freeze or credit lock.

As of the first of November in 2007, all three credit reporting agencies gave consumers in America the ability to limit access to their individual credit reports. Of course unless you are an actual victim of identity theft, the process is not actually free in most states. To put a freeze on your credit report as a simple proactive measure to avoid criminal theft of your information; costs in most states and fees very widely. One would have to go to each of the three credit bureau's web sites for specific instructions and individual state fees. Additionally, to implement a freeze completely, the process to freeze your credit report has to be done at each agency: all of whom have various methodologies.

A credit freeze does provide substantial identity theft protection however, it is not without loopholes. It can not stop non-credit-related forms of ID theft, such as the creation of a duplicate driver's license or criminal identity theft (when a suspect gives your name to police when booked for a crime). It also won't stop an illegal immigrant or undocumented worker from using your Social Security Number to obtain employment.

Additionally, it won't stop every company from accessing your credit report. New creditors are largely blocked out, yet still existing lenders i.e. your current credit card company (for example) can still view your report and offer you new credit cards. Also, collection agencies acting on behalf of these companies with your current account(s), state or local agencies that includes law enforcement, child support agencies, trial courts pursuant to a warrant or subpoena, credit monitoring companies and companies that sell credit reports to consumers are still viable accesses.

It also won't stop those pre-approved credit card offers. The bureaus can still give your name and address to credit card companies. Of course, you can stop those mailings by making a simple call to 1-888-5OPTOUT or by visiting http://optoutprescreen.com.

Putting a freeze in place requires some time consuming paperwork like sending certified letters. And it means keeping track of freezing and subsequent lifts of an imposed freeze. As stated earlier, it does no good to freeze one or two reports. If you want real identity theft protection, you'll have to go through the motion and requirements to freeze all three credit agencies. If you want to get a new credit card, you'll have to lift at least one agencies credit report freeze. To undertake a major investment such as buying a new home, you'll most likely have to lift all three credit agency freezes then; turn around and make sure they are frozen again to safeguard your identity after the purchase is closed.

Gail Hillebrand, Consumers Union credit bureau expert, compares freeze fees to paying for insurance and stated "If you are the person in the household who will have to unravel an identity theft after it happens, then you probably think $10 a pop is a good deal." Additionally, "Consumers who are already paying for $10-per-month credit monitoring services should cancel and pay for security freezes instead." she concluded.

Despite the time consumption and varying requirements, a credit freeze is likely the most optimal thing you can do to stop most identity theft before it lurks its aggravating head. Think of it like the sign you place in your window that announces the premise is protected by an alarm system. Yes, the home can still be broken into but, many thieves who see an alarm would move on to another target. Identity thieves who come upon a security freeze when trying to get services in your name such as credit cards or loans are just as likely to move onto the next Social Security number.

Only the individual can decide what is best for their own circumstances. My only input would be with identity theft on the rampage, some kind of proactive measure is warranted to lesson chances of identity theft.

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About Author

Both Lisa Carey & Ronald Hudkins are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Lisa Carey has sinced written about articles on various topics from Computers and The Internet, Shopping and Computer Virus. Lisa Carey is a contributing author for . You can get tips on Identity theft protection, software, and monitorin. Lisa Carey's top article generates over 9900 views. to your Favourites.

Ronald Hudkins has sinced written about articles on various topics from Retirement, Jewelry and Online Business. Visit to learn. Ronald Hudkins's top article generates over 14800 views. to your Favourites.