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Congress May Finally Limit SSN Sales
David Utter
Staff Writer
2006-05-12
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The online trading of Social Security numbers has led in some cases to identity theft, and both houses on Capitol Hill have bills in the works to stop those SSN sales.
 | | Both Houses Working to Stop SSN Sales |  |
The 71-year-old Social Security numbers developed to help keep track of payments made to Social Security were never meant to be used as a universal identifier for American citizens. They have become just that, and a brisk market for selling those numbers to other businesses has proved a lucrative one.
Unfortunately as CNet noted in a recent report, the firms buying those numbers have had a few accusing fingers pointed their way when identity fraud has occurred. Security breaches led the Federal Trade Commission to report in 2003 that some 10 million people annually experienced the ill effects of their personal information being exposed.
Congress has felt the heat as these breaches took place, sometimes on a massive scale. By the end of 2006, they should have new legislation passed into law to ban such sales with some limited exceptions.
The bill sponsored by House Representative Edward Markey (D-MA) requires limitations by the FTC on the sale and purchase of Social Security numbers. Entities like law enforcement and public health would be exempted from the provisions.
"The inappropriate sale or purchase of Social Security numbers is a significant factor in a growing range of illegal activities, including fraud, identity theft, and, in some cases, stalking and other violent crimes," reads Markey's bill.
House Representative Clay Shaw (R-FL) targets the display of Social Security numbers on government documents; states that had done so on driver's licenses have moved away from that practice. Shaw's bill would also make certain businesses drop their requirements for a Social Security number from customers in order to do business with them.
Shaw's bill also calls for enhanced penalties who misuse Social Security numbers in cases of terrorism, drug trafficking, crimes of violence, or prior offenses.
Bills like these face opposition from the industry sectors that profit handsomely from the trade of Social Security numbers. At a recent Congressional hearing on the problem of Social Security number usage, a representative for the powerful Financial Services Coordinating Council cited "beneficial uses" of them for issues like fraud detection.
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Tag: General
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About the Author:
David Utter is a business and technology writer for SecurityProNews and WebProNews.
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