The best way to guard against identity theft is to guard your Social Security number
According to the Social Security Administration, relatively few organizations actually need your number. Your employer needs it in order to pay you. Financial institutions such as banks and brokerage firms need it because they report interest earned to the IRS. However, doctors’ offices do not need it unless you are on Medicare or Medicaid.
Of course, that won’t prevent some companies from asking for your number. When a Time magazine reporter tried signing up for phone service she ended up talking to eight different people before finding one who told her they could accept other forms of identification such as a drivers license.
It may be a hassle to avoid giving out your Social Security number, but it’s worth it. If someone steals your credit card number, they can run up charges on your account, but chances are good that the credit card company won’t make you pay. On the other hand, if someone gets your Social Security number, they can open new accounts in your name, which you may not discover for months or even years. Undoing that damage, according to the Federal Trade Commission, costs victims an average of 60 hours and nearly $1,200.
If you ever become a victim of identity theft, the Federal Trade Commission offers guidance here.
Are you vigilant about protecting your Social Security number? Have you ever refused to give out your number? If so, what happened?
Hey Matt,
I remember being on the customer service side of this issue.
When I was teenager working for a video store in the late ’90’s (yeah VHS!) we asked for people’s SSN’s as part of the application process. We’d ask for their SSN because it was one of the options for the 2 items to confirm their identity. We needed a driver’s license and one other form.
At that time in my life I didn’t realize protecting one’s SSN was so important. I was simply doing as I was told. Some people just gave their SSN’s so they didn’t have to go home to get a utility bill to confirm their identity (we didn’t accept credit cards as a form of identity). But some people were really upset that I even asked them for their SSN. That was when I started to get the impression that our SSN’s are particularly important to protect (because I remember being confused when people became so confrontational!)
Blessings-