June 12, 2008

Social Security Number: A Key to Identity Fraud

Social Security has been one of the country’s most successful programs. It aids people from financial uncertainty especially in their trying times.
The program provides several protections such as:
0 progressive benefit formula
0 comprehensive insurance benefits that include disability
0 survivors and retirement benefits
0 spouses0 benefits
0 a cost of living adjustment
0 coverage until death
These protections will be placed at risk if fraud related claims continue to spoil Social Security.
Identity theft using the Social Security numbers (SSNs) is one of the common Social Security frauds that have been weakening the program.
History on the Use of Social Security Numbers
SSNs were first issued in 1936. The federal government assured the public that the use of the numbers would be restricted to Social Security programs such as calculating retirement benefits.
Today, however, SSN has become the de facto general identifier.
Government agencies and private businesses use SSNs even for a wide range of non-Social Security purposes. These purposes include:
0 employee files
0 medical records
0 health insurance accounts
0 credit and banking accounts,
0 university ID cards
0 utility accounts
The use of SSNs as both an identifier and an authenticator makes these numbers highly desirable to fraudulent acts, such as identity theft.
Social Security Fraud by Using SSN
Identity fraud is not all about money. The persistent use of SSNs as an identification mechanism […]