Identity Theft Issues Abound

November 1, 2008

Author: Catherine M. Callery (Kate)| Louise M. Tarantino

Ann Biddle, Esq., Paul M. Ryther, Esq.

The illegal use of social security numbers (SSNs) continues to a major problem.  Both the GAO (General Accountability Office) and the SSA OIG (Office of the Inspector General) have recently issued reports concerning the safeguarding of this information.  On a related note, the IRS (Internal Revenue Service) has created a    toll-free number for identity theft victims.

According to the GAO, many county governments are providing citizen’s full or partial Social Security Numbers available online or in bulk to private companies.  Public records - such as birth, marriage and death certificates, civil and criminal court case files, and property liens - that used to be accessible only in the county recorder’s office can now be viewed remotely online in many states.  Approximately 85 percent of counties nationwide make the records available, but only 16 percent of counties place any restrictions on the types of entities that can obtain those records.  Furthermore, although about half of the states have passed laws that in some way limit the display of SSNs in new public records, most of these laws do nothing to wipe SSNs from documents already published and available.

The GAO notes that there are bills pending in Congress that would limit both private and government entities' ability to sell or display SSNs to other parties. According to the GAO, however, such a prohibition already exists:

A 1990 amendment to the Social Security Act requires that SSNs obtained or maintained pursuant to any provision of law enacted on or after October 1, 1990, be kept confidential, and no authorized person shall disclose any such social security account number or related record.

Despite this prohibition, SSA has not promulgated any regulations to implement or enforce it.

The GAO prepared its September 4, 2008 report - Social Security Numbers Are Widely Available in Bulk and Online Records, but Changes to Enhance Security Are Occurring - as Briefing for Senator Charles E. Schumer, Chairman, Subcommittee on Administrative Oversight and the Courts, Committee on the Judiciary.  It is available at http://www.gao.gov/new.items/d081009r.pdf. 

The OIG also criticized SSA for failing to do enough to detect the posting of work activity to SSNs that were misused for work purposes.  SSA had several processes to detect some instances of SSN misuse in its records, such as isolating reporting anomalies related to children and deceased individuals.  According to the OIG, however, SSA needs to strengthen its controls to help prevent misuse of an SSN from continuing once identified.  It also concluded that SSA needs to improve its correspondence with victims of SSN misuse to educate them about the need to report suspected SSN misuse to the Federal Trade Commission and law enforcement.  Additionally, the Agency needs to inform employers about wage items reported as incorrect to assist employers with detecting SSN misuse and preventing its continuation.

The OIG’s report - Social Security Number Misuse for Work and the Impact on the Social Security Administration's Master Earnings File (A-03-07-27152) - is available at http://www.ssa.gov/oig/ADOBEPDF/A-03-07-27152.pdf.

Finally, the IRS has established a new toll free hotline for taxpayers to call identifying themselves as identity theft victims.  The hotline will provide taxpayer access to automated messages and live IRS assistors.  The IRS will have teams to take calls in English and Spanish between the hours of 8:00 am and 8:00 pm local time (Alaska and Hawaii follow Pacific Time). It will provide guidance to individuals identifying themselves as potential victims of identity theft, including actions to take when there currently is no tax related impact.

The toll-free number is 800-908-4490.