Why Your Social Security Number Matters

Someone who illegally uses it can access personal information and apply for credit in your name.  If your identity is stolen it could take months and even a bit of your money to clean up the financial mess.  It’s going to take a good amount of credit repair to get your credit profile accurate.

Last year over 11 million people in the United States were the victims of identity fraud — at a total cost of $54 billion.  Luckily most of those affected haven’t had to pay any out-of-pocket expenses, and those who did paid an average of $373.  But remember I was telling you that it would eat up a lot of your time to finally get right.  21 hours was the average time spent resolving the situation.

Take Precautions

I can’t stress this enough, DO NOT keep your social security card in your wallet.  I know we like to think identity theft is some high tech crime that takes place when we’re buying something online or using an unsafe Bluetooth headset … a product of us watching too many movies I’m sure.  But the truth is that most ID theft is very low tech; like stealing your wallet with a SS Card and license all packaged and ready to go.

If a company uses your SS Number as your account number, ask if there’s any way they can change it.  Normally there is.  You’re not the first one who’s trying to safeguard their identity.

Lastly, make sure that you check your credit reports often.  Some people choose to have credit report monitoring, which does cost a few dollars a month, but they’ll be notified of any changes almost immediately.  At least be sure to request a free credit report each year to check for unusual activity.

When is Your SS Number Required?

Obviously there are situations where giving your Social Security Number is absolutely necessary.  Starting a new job is one of those times.  Because of tax reporting purposes, whether you receive a W-2 or 1099 at the end of the year, your employer needs to report your income to the IRS.  Your bank is going to need your SS Number for the exact same reason.

Sometimes government agencies like the Department of Motor Vehicle can ask for your SS Number.  They have to explain exactly why though.  In other words, they need to tell you if it’s required or optional, how they plan on using it and under whose authority they’re asking you for your number.

Requested but Not Required

Just about anyone can ask you for your SS Number.  Plenty of companies merely use it as your account or identification number.  But if it’s not required, you can refuse it.  If a company’s working for you financially, such as the case with debt relief, the company may need it in order to act on your behalf.

But if a company asks for your SS Number, make sure you ask them a few questions first:

• Why do you need it?
• What security measures do you take to ensure that it’s safe?
• Can we use a different number if it’s simply for an account number?
• How exactly will it be used?

Don’t be so blasé with your Social Security Number when you don’t need to be.  Having talked to some of the over 11 million a year that fall victim to identity theft, I can tell you it’s not an experience you want to go through.  Lock it up and keep it locked up unless it’s absolutely necessary.

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