Social Security Numbers: Federal and State Laws Restrict Use of
SSNs, yet Gaps Remain (15-SEP-05, GAO-05-1016T).
In 1936, the Social Security Administration established the
Social Security number (SSN) to track worker's earnings for
Social Security benefit purposes. Despite its narrowly intended
purpose, the SSN is now used for a myriad of non-Social Security
purposes. Today, SSNs are used, in part, as identity verification
tools for services such as child support collections, law
enforcement enhancements, and issuing credit to individuals.
Although these uses can be beneficial to the public, the SSN is
now a key piece of information in creating false identities. The
aggregation of personal information, such as SSNs, in large
corporate databases and the increased availability of information
via the Internet may provide criminals the opportunities to
commit identity theft. Although Congress and the states have
enacted a number of laws to protect consumers' privacy, the
public and private sectors' continued use of and reliance on
SSNs, and the potential for misuse, underscore the importance of
strengthening protections where possible. Accordingly, this
testimony focuses on describing (1) the public use of SSNs, (2)
the use of SSNs by certain private sector entities, and (3)
certain federal and state laws regulating the use of SSNs and
identity theft.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-05-1016T
ACCNO: A36858
TITLE: Social Security Numbers: Federal and State Laws Restrict
Use of SSNs, yet Gaps Remain
DATE: 09/15/2005
SUBJECT: Consumer protection
Federal law
Federal legislation
Federal/state relations
Identity theft
Identity verification
Internet
Private sector
Right of privacy
Social security number
State law
State legislation
******************************************************************
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GAO-05-1016T
United States Government Accountability Office
GAO Testimony
Before the Committee on Consumer Affairs and Protection and Committee on
Governmental Operations, New York State Assembly
For Release on Delivery
Expected at 10:30 a.m. EST SOCIAL SECURITY
Thursday, September 15, 2005
NUMBERS
Federal and State Laws Restrict Use of SSNs, yet Gaps Remain
Statement of Barbara D. Bovbjerg, Director Education, Workforce, and Income
Security Issues
GAO-05-1016T
[IMG]
September 15, 2005
SOCIAL SECURITY NUMBERS
Federal and State Laws Restrict Use of SSNs, yet Gaps Remain
What GAO Found
The public and private sector use of SSNs is widespread. Agencies at all
levels of government frequently collect and use SSNs to administer their
programs, verify applicants' eligibility for services and benefits, and
conduct research and evaluations of their programs. Although some
government agencies are taking steps to limit the use and display of SSNs,
these numbers are still widely available in a variety of public records
held by states, local jurisdictions, and courts. In addition, certain
private sector entities that we have reviewed, such as information
resellers, credit reporting agencies (CRAs), and health care
organizations, also routinely obtain and use SSNs. These entities often
obtain SSNs from various public sources or their clients and use SSNs for
various purposes, such as building tools that aid in verifying an
individual's identity or matching records from various sources.
Given the extent to which government and private sector entities use SSNs,
Congress has enacted federal laws to restrict the use and disclosure of
consumers' personal information, including SSNs. Many states have also
enacted their own legislation to restrict the use and display of SSNs,
focusing on public display restrictions, SSN solicitation, and customer
notifications when SSNs are compromised. Furthermore, Congress has
recently introduced consumer privacy legislation similar to enacted state
legislation, which in some cases includes SSN restrictions. Although there
is some consistency in the various proposed and enacted federal and state
laws, gaps remain in protecting individuals' personal information from
fraud and identity theft. Some federal agencies are beginning to collect
statistics on identity theft crime, which appears to be growing. For
example, recent statistics show that identity theft is increasing in New
York. In 2004, Federal Trade Commission (FTC) statistics indicated that
over 17,600 New Yorkers reported being a victim of identity theft, which
is up from roughly 7,000 in 2001.
Total Number of Fraud and Identity Theft Complaints to FTC in 2004
United States Government Accountability Office
Madam Chairwomen and Members of the Committees:
I am pleased to be here today to discuss ways to better protect the Social
Security number (SSN). Although the SSN was created as a means to track
workers' earnings and eligibility for Social Security benefits, it is now
also a vital piece of information needed to function in American society.
Because of its unique nature and broad applicability, the SSN has become
the identifier of choice for public and private sector entities, and it is
used for numerous non-Social Security purposes. Today, U.S. citizens need
an SSN to pay taxes, obtain a driver's license, or open a bank account,
among other things. For these reasons, the SSN is highly sought by
individuals seeking to create false identities for purposes such as
fraudulently obtaining credit, violating immigration laws, or fleeing the
criminal justice system.
Recent statistics suggest that the incidence of identity theft is rapidly
growing.1 The Federal Trade Commission (FTC) estimated that over a oneyear
period nearly 10 million people-or 4.6 percent of the U.S. adult
population-discovered that they were victims of some form of identity
theft, translating into reported losses exceeding $50 billion. Identity
theft also appears to be a serious and growing crime in New York. In 2004,
FTC statistics indicated that over 17,600 New Yorkers reported being
victims of identity theft, up from roughly 7,000 in 2001. However, an FTC
survey found that most victims of identity theft do not report the crime.
Therefore, the total of number of identity thefts is unknown.
Although there are enacted laws to protect the security of personal
information, the continued use of and reliance on SSNs by public and
private sector entities and the potential for misuse underscore the
importance of identifying areas that can be further strengthened.
Accordingly, you asked us to speak about the use of SSNs and the federal
and state laws that regulate such use. My remarks today will focus on
describing the (1) public use of SSNs, (2) the use of SSNs by certain
private sector entities, and (3) federal and state laws regulating the use
of SSNs and identity theft. My testimony is based on reports GAO has done
for multiple congressional committees over the last several years.
1 GAO, Identity Theft: Prevalence and Cost Appear to Be Growing,
GAO-02-363 (Washington, D.C.: March 2002).
In summary, SSN use is widespread. Agencies at all levels of government
frequently collect and use SSNs to administer their programs, verify
applicants' eligibility for services and benefits, and perform research
and evaluations of their programs. Although some government agencies are
taking steps to limit the use and display of SSNs, these numbers are still
available in a variety of public records held by states, local
jurisdictions, and courts.
Certain private sector entities that we have reviewed, such as information
resellers, credit reporting agencies (CRAs), and health care organizations
also routinely obtain and use SSNs.2 These entities often obtain SSNs from
various public sources or their clients wishing to use their services. We
found that these entities used SSNs for various purposes, such as to build
tools that verify an individual's identity or match existing records.
A number of federal laws have been enacted to restrict the use and
disclosure of consumers' personal information, including SSNs. In
addition, many states have enacted their own legislation to restrict the
use and display of SSNs on items such as identification cards, and require
entities to notify customers of unauthorized access or use of their
personal information. In the last year, Congress also has introduced
consumer privacy legislation similar to enacted state legislation, which
in some cases includes SSN restrictions. To date, enacted federal and
state laws provide various ways to protect individual's personal
information and prevent identity theft. However, while there is some
consistency in the various laws protecting consumer personal information,
no single law comprehensively regulates SSN use and protections, and no
agency has primary jurisdiction over consumer protections and identity
theft.
The Social Security Act of 1935 authorized the Social Security
Administration (SSA) to establish a record-keeping system to manage the
Social Security program, which resulted in the creation of the SSN.3
2 Information resellers, sometimes referred to as information brokers, are
businesses that specialize in amassing consumer information, such as SSNs,
for informational services. CRAs, also known as credit bureaus, are
agencies that collect and sell information about the creditworthiness of
individuals. Health care organizations or health care insurers generally
deliver services through a coordinated system that includes health care
providers and health care plans.
3 The Social Security Act of 1935 created the Social Security Board, which
was renamed the Social Security Administration in 1946.
Background
Through a process known as enumeration, unique numbers are created for
every person as a work and retirement benefit record. Today, SSA issues
SSNs to most U.S. citizens, but they are also available to noncitizens
lawfully admitted to the United States with permission to work. Lawfully
admitted noncitizens may also qualify for a SSN for nonwork purposes when
a federal, state, or local law requires that they have a SSN to obtain a
particular welfare benefit or service. SSA staff collect and verify
information from such applicants regarding their age, identity,
citizenship, and immigration status.
Since its creation, the SSN has evolved beyond its original intended
purpose. This is significant, because these numbers, along with a name and
birth date, are the three pieces of information most often sought by
identity thieves. Once a SSN is obtained fraudulently, it can then be used
as "breeder" information to create additional false identification
documents, such as driver's licenses.4 As shown in figure 1, reported
cases of identity theft are on the rise. In addition, the reported
incidents of identity theft in New York have also risen, in an increase
similar to the overall rise reported in the United States.
4 United States Sentencing Commission, Identity Theft Final Alert
(Washington, D.C.: Dec. 15, 1999).
Figure 1: Comparison between Reported New York Identity Theft Complaints
and Overall United States Complaints
Total victims
300,000
250,000
200,000
150,000
100,000
50,000 0
2001 2002 2003 2004 Calendar year
New York United States
Source: FTC, Identity Theft Data Clearinghouse.
In 1998, Congress made identity theft a federal crime when it enacted the
Identity Theft and Assumption Deterrence Act (Identity Theft Act).5 The
act made it a criminal offense for a person to "knowingly transfer,
possess, or use without lawful authority," another person's means of
identification "with the intent to commit, or to aid or abet, or in
connection with, any unlawful activity that constitutes a violation of
federal law, or that constitutes a felony under any applicable state or
local law." Under the act, a name or SSN is considered a "means of
identification," and a number of cases have been prosecuted under this
law.
The Identity Theft Act mandated a specific role for FTC in combating
identity theft. To fulfill the mandate, FTC is collecting identity theft
complaints and assisting victims through a telephone hotline and a
dedicated Web site; maintaining and promoting the Identity Theft Data
Clearinghouse, a centralized database of victim complaints that serves as
5 Pub. L. No. 105-318, codified in part at 18 U.S.C. S:1028.
an investigative tool for law enforcement; and providing outreach and
education to consumers, law enforcement, and industry. According to FTC,
it receives roughly 15,000 to 20,000 contacts per week on the hotline, via
its Web site, or through the mail from victims and consumers who want to
avoid becoming victims. FTC has said that the callers to its hotline
receive counseling from trained personnel who provide information on
prevention of identity theft and also inform victims of the steps to take
to resolve the problems resulting from the misuse of their identities.
The increased availability and aggregation of personal information,
including SSNs, has exposed SSNs to potential misuse, and in some cases,
identity theft. Over the last year, several large companies' databases
containing personal information were compromised, but the extent to which
identity theft resulted from these reported security breaches is unknown.
However, the identity theft crimes that have occurred illustrate how
aggregated personal information can be vulnerable. For example, a help
desk employee at a New York-based software company, which provided
software to its clients to access consumer credit reports, stole the
identities of up to 30,000 individuals by using confidential passwords and
subscriber codes of the company's customers. The former employee
reportedly sold these identities for $60 each. Furthermore, given the
explosion of Internet use and the ease with which personally identifiable
information is accessible, individuals looking to steal someone's identity
are increasingly able to do so. In our work, we identified a case where an
individual obtained the names and SSNs of high-ranking U.S. military
officers from a public Web site, and used those identities to apply online
for credit cards and bank credit.
As required by a number of federal laws and regulations, agencies at all
levels of government frequently collect and use SSNs to administer their
programs, to link data for verifying applicants' eligibility for services
and benefits, and to conduct program evaluations. We have also found that
SSNs are widely available in a variety of public records held by states,
local jurisdictions, and courts. However, some government agencies are
taking steps to limit the use and display of SSNs in hopes of preventing
the proliferation of false identities.
Public Sector Entities Use SSNs, and Some Agencies Limit Their Display
Public Sector Entities Are Required by Laws and Regulations to Collect
SSNs, and They Use Them for Various Purposes
As required by a number of federal laws and regulations, SSNs are widely
used by federal, state, and county government agencies when they provide
services and benefits to the public.6 For example, the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 mandates
that, among other things, states have laws in place to require the
collection of SSNs on driver's license applications. Such laws and
regulations have contributed to the widespread use of SSNs by government
agencies, because these numbers serve as a unique identifier for such
governmentrelated activities like paying taxes.
Government agencies use SSNs for a variety of reasons. We have found that
agencies typically used the SSN to manage their records and to facilitate
data sharing to verify an applicant's eligibility for services and
benefits.7 For example, agency officials at all levels of government we
surveyed reported using SSNs for internal administrative purposes, which
included activities such as identifying, retrieving, and updating records.
In addition, agencies reported sharing SSNs and other personal information
to collect debts owed the government and conduct or support research and
evaluations as well as using employees' SSNs for activities such as
payroll, wage reporting, and providing employee benefits.
Government agencies also use SSNs to ensure program integrity. For
example, agencies may use SSNs to match records with state and local
correctional facilities to identify individuals for whom the agency should
terminate benefit payments. In addition, SSNs are sometimes used for
statistics, research, and evaluation. For example, the Bureau of the
Census prepares annual population estimates for states and counties using
individual income tax return data linked over time by SSNs to determine
immigration rates between localities.8 SSNs also provide government
agencies and others with an effective mechanism for linking data on
6 GAO, Social Security Numbers: Government and Commercial Use of the
Social Security Number Is Widespread, GAO/HEHS-99-28 (Washington, D.C.:
February 1999), and GAO, Social Security Numbers: Government Benefits from
SSN Use, but Could Provide Better Safeguards, GA0-02-352 (Washington,
D.C.: May 2002).
7 GA0-02-352.
8 The Bureau of the Census is authorized by statute to collect a variety
of information and is prohibited from making it available, except in
certain circumstances.
program participation with data from other sources to help evaluate the
outcomes or effectiveness of government programs.9
SSNs Are Widely Available in Public Records Held by States, Local
Jurisdictions, and Courts, but Many of These Agencies Are Taking Steps to
Limit Display
SSNs are publicly available throughout the United States, primarily at the
state and local levels of government.10 On the basis of a survey of
federal, state, and local governments, we reported in 2004 that state
agencies in 41 states and the District of Columbia were displaying SSNs in
public records; this was also true in 75 percent of U.S. counties.11 We
also found that while the number and type of records in which SSNs were
displayed varied greatly across states and counties, SSNs were most often
found in court and property records. According to our survey, only four
New York state agencies reported collecting SSNs for their operations, and
none made them available to the general public.
Public records displaying SSNs are stored in multiple formats that vary by
different levels of government. State government offices tended to store
such records electronically, while most local government records were
stored on microfiche or microfilm. However, our survey found that public
access to such records was often limited to inspection of the individual
paper copy or request by mail.12
According to our survey, few state agencies make public records available
on the Internet, but as many as several hundred counties do so. However,
few state or local offices reported any plans to significantly expand
Internet access to public records that display SSNs. Judging from our
9 The statistical and research communities refer to the process of
matching records containing SSNs for statistical or research purposes as
"record linkage." See GAO, Record Linkage and Privacy: Issues in Creating
New Federal Research and Statistical Information, GAO-01-126SP
(Washington, D.C.: April 2001).
10 Not all records held by government or public agents are "public" in
terms of their availability to any inquiring person. For example, adoption
records are generally sealed. Personnel records are often not readily
available to the public, although newspapers may publish the salaries of
high elected officials. There is no common definition of public records.
However, we define public records as those records generally made
available to the public in their entirety for inspection by a federal,
state, or local government agency. Such documents are typically accessed
in a public reading room or clerk's office or on the Internet.
11 GAO, Social Security Numbers: Governments Could Do More To Reduce
Display in Public Records and on Identity Cards, GAO-05-59 (Washington,
D.C.: November 2004).
12 GAO-05-59.
survey results, only four state agencies indicated plans to make such
records available on the Internet, and one agency planned to remove
records displaying SSNs from Internet access.
Our survey results also showed that state offices were taking measures to
change the way in which they displayed or shared SSNs in public records.
For example, we found that many state agencies had restricted access to or
redacted-covered or otherwise hidden from view-SSNs from public versions
of records. Specific restrictions and other actions state agencies
reported taking included blocking or removing SSNs from electronic
versions of records, allowing individuals identified in the record to
request removing their SSN from the publicly available version, replacing
SSNs with alternative identifiers, and restricting access only to
individuals identified in the records.
Certain Private Sector Entities Routinely Obtain and Use SSNs
Private sector entities such as information resellers, credit reporting
agencies, and health care organizations routinely obtain and use SSNs.
Such entities obtain the SSNs from various public sources and their
clients wishing to use their services. However, given the varied nature of
SSN data found in public records, some reseller officials told us that
they are more likely to rely on receiving SSNs from their business clients
than they are on obtaining SSNs from public records. Because the SSN is a
unique identifier, we found that these entities use SSNs for various
purposes, such as building tools to aid in verifying an individual's
identity or matching existing data.
Private Sector Entities Obtain SSNs from Public and Private Sources
Private sector entities such as information resellers, CRAs, and health
care organizations generally obtain SSNs from various public and private
sources. Large information resellers have told us they obtain SSNs from
various public records, such as records of bankruptcies, tax liens, civil
judgments, criminal histories, deaths, real estate transactions, voter
registrations, and professional licenses. To gather SSNs from these
records, resellers told us that they send employees to courthouses or
other repositories to obtain hard copies of public records, if not easily
obtainable on the Internet or public record publications. They also said
that they sometimes obtain batch files of electronic copies of
jurisdictional public records where available. However, given the varied
nature of SSN data found in public records, some reseller officials said
they are more
likely to rely on SSNs obtained directly from their clients, who would
voluntarily provide such information for a specific service or product,
than those found in public records.13
Like information resellers, CRAs also obtain SSNs from public and private
sources. CRA officials have told us that they obtained SSNs from public
sources, such as bankruptcy records. We also found that these companies
obtained SSNs from other information resellers, especially those that
specialized in obtaining information from public records. However, CRAs
are more likely to obtain SSNs from businesses that subscribe to their
services, such as banks, insurance companies, mortgage companies, debt
collection agencies, child support enforcement agencies, credit grantors,
and employment screening companies. Therefore, individuals who provide
these businesses with their SSNs for reasons such as applying for credit
would subsequently have their charges and payment transactions,
accompanied by the SSN, reported to the CRAs.
Health care organizations, including health care insurance plans and
providers, are less likely to obtain SSN data from public sources. Health
care organizations typically obtained SSNs from either individuals
themselves or from companies that offer health care plans. For example,
subscribers or policyholders enrolled in a health care plan, provide their
SSNs as part of their health care plan applications to their company or
employer group. In addition to health care plans, health care
organizations also included health care providers, such as hospitals. Such
entities often collected SSNs as part of the process of obtaining
information on insured people. However, health care provider officials
told us that, particularly with hospitals, the medical record number is
the primary identifier, rather than the SSN.
Private Sector Entities Use SSNs Mainly for Linking Data for Identity
Verifications
Information resellers, CRAs, and health care organization officials all
said that their companies used SSNs to link data for identity
verifications. Most of the officials we spoke to said that the SSN is the
single most important identifier available, because it is truly unique to
an individual, unlike a name or address, which can change over an
individual's lifetime. For example, we found that one large information
reseller that specialized in information technology solutions had
developed a customer verification data model that used SSNs to help
financial institutions comply with
13 GAO-04-11.
federal laws regarding "knowing your customer."14 Most of the large
information resellers' officials we spoke to said that although they
obtained the SSN from their clients, they rarely provided SSNs to their
customers. Furthermore, almost all of the officials said that they
provided their clients a truncated SSN (e.g., xxx-xx-6789).
We also found that Internet-based information resellers-which provide
investigative or background checks to anyone willing to pay a fee-used the
SSN as a means to collect other information about an individual to verify
their identity. These types of resellers were more dependent on SSNs than
the large information resellers. In 2003, in an effort to determine what
type of information we could obtain from these Internetbased resellers,
our investigators accessed these sites, paid the fee, and supplied several
Internet-based resellers with legitimate SSNs. Our investigators found
that these resellers provided them with corresponding information based on
the supplied SSNs, such as a name, address, telephone number, and on two
occasions, a truncated SSN. Also, all but one reseller required our
investigators to provide both the name and SSN of the person who was the
subject of our inquiry. During our investigation, not one of the reviewed
Internet-based resellers in any apparent way attempted to audit us,
determine who we were, or verify that we were using the information for
the permissible purpose we had indicated.15
CRAs used SSNs as the primary identifier of individuals, which enabled
them to match the information they received from their clients with the
information stored in their databases.16 Because these companies had
various commercial, financial, and government agencies furnishing data to
them, the SSN was the primary factor that ensured that incoming data were
matched correctly with an individual's information on file. For example,
CRA officials said they used several factors to match incoming data with
existing data, such as name, address, and financial account
14 Under Section 326 of the USA PATRIOT Act, financial institutions must
verify each new account holder's identity after opening an account in an
effort to curtail money laundering and terrorist financing.
15 GAO-04-11.
16 We found that CRAs and information resellers can sometimes be the same
entity, a fact that blurs the distinctions between the two types of
businesses but does not affect the use of SSNs by these entities. Five of
the six large information resellers we spoke to said they were also CRAs.
Some CRA officials said that information reselling constituted as much as
40 percent of CRAs' business.
information. However, because of its uniqueness, they said that they use
the SSN as a primary means to match data.
We also found that health care organizations used the SSN to help verify
identities. These organizations used SSNs, along with other information,
such as name, address, and date of birth, to determine a member's
identity. Health care officials said that health care plans, in
particular, used the SSN as the primary identifier, and it often became
the customer's insurance number. Health care officials said that they used
SSNs for identification purposes, such as linking an individual's name to
an SSN to determine if premium payments have been made. They also used the
SSN as an online services identifier, as an alternative policy identifier,
and for phone-in identity verification. Health care organizations also
used SSNs to tie family members together where family coverage is used,17
to coordinate member benefits, and as a crosscheck for pharmacy
transactions. Health care industry association officials also said that
SSNs are used for claims processing, especially with regard to Medicare.
Certain federal laws have been enacted to restrict the use and disclosure
of consumers' personal information, including SSNs. In addition to these
federal laws, many states have enacted their own legislation to restrict
the use and display of SSNs, focusing on public display restrictions, such
as the display of SSNs on identification cards, SSN solicitation, and
customer notifications when SSNs are compromised. In the last year,
Congress has also introduced consumer privacy legislation similar to
enacted state legislation, which in some cases includes SSN restrictions.
In 1998, Congress enacted legislation that made identity theft a crime,
and state legislatures have also enacted such legislation.
Federal and State Laws Limit Disclosure of Personal Information and Address
Identity Theft
Federal and State Laws Limit the Use and Disclosure of Personal
Information, Including SSNs
Certain federal and state laws have placed restrictions on entities' use
and disclosure of consumers' personal information, including SSNs. At the
federal level, such laws include the Fair Credit Reporting Act (FCRA), the
Fair and Accurate Credit Transaction Act (FACTA), the Gramm-Leach-Bliley
Act (GLBA), the Drivers Privacy Protection Act (DPPA), and the Health
Insurance Portability and Accountability Act (HIPAA). As shown in
17 During the enrollment process, subscribers have a number of options,
one of which is deciding whether they would like single or family
coverage. In cases where family coverage is chosen, the SSNs is the key
piece of information generally allowing the family members to be linked.
table 1, these federal laws either restrict certain public and private
sector entities from disclosing personally identifiable information to
specific purposes or with whom the information is shared. See appendix II
for more information on these laws.
Table 1: Aspects of Federal Laws That Affect Private Sector Disclosure of
Personal Information
Federal laws Restrictions
Fair Credit Reporting Act Limits access to credit data that includes SSNs
to those who have a permissible purpose under the law.
Fair and Accurate Credit Amends FCRA to allow, among others things,
consumers who request a copy of their credit
Transactions Act report to also request that the first five digits of
their SSN (or similar identification number) not be included in the file;
requires consumer reporting agencies and any business that use a consumer
report to adopt procedures for proper disposal.
Gramm-Leach-Bliley Act Creates a new definition of personal information
that includes SSNs and limits when financial institutions may disclose the
information to nonaffiliated third parties.
Drivers Privacy Protection Act Prohibits obtaining and disclosing SSNs and
other personal information from a motor vehicle record except as expressly
permitted under the law.
Health Insurance Portability and Protects the privacy of health
information that identifies an individual (including by SSNs) and
Accountability Act restricts health care organizations from disclosing
such information to others without the patient's consent.
Source: GAO analysis.
Many states have enacted their own legislation to restrict the use and
display of SSNs by public and private sector entities. Similar to some of
New York's proposed bills, several state statutes include provisions
related to restricting the display of SSNs, the unnecessary collection of
SSNs, and the disclosure of individual's SSN without their consent. See
appendix III for some examples of states that have enacted such
legislation.
Notably, in 2001, California enacted a law to restrict the use and display
of SSNs.18 The law generally prohibits companies and persons from engaging
in certain activities, such as
o posting or publicly displaying SSNs,
o printing SSNs on cards required to access the company's products or
o services,
o requiring people to transmit an SSN over the Internet unless the
connection is secure or the number is encrypted,
18 Cal. Civ. Code S: 1798.85 (2001).
o requiring people to log onto a Web site using an SSN without a
password, or
o printing SSNs on anything mailed to a customer unless required by law
or the document is a form or application.
After its enactment, California's Office of Privacy Protection published
recommended practices for protecting the confidentiality of the SSN, which
included reducing its collection, controlling institutional access to it,
instituting safeguards to protect it, and holding employees accountable
for protecting it. These recommendations applied to both public and
private sector entities.
Subsequently, several states have enacted laws restricting the use or
display of SSNs. Specifically, we have identified 11 states-Arkansas,
Arizona, Connecticut, Illinois, Maryland, Michigan, Minnesota, Missouri,
Oklahoma, Texas, and Virginia-that have each passed laws similar to
California's. 19 While some states, such as Arizona, have enacted
virtually identical SSN use and display restrictions, other states have
modified the restrictions in various ways. For example, unlike the
California law, which prohibits the use of the full SSN, the Michigan
statute prohibits the use of more than four sequential digits of the SSN.
The Michigan law also contains a prohibition against the use of SSNs on
identification and membership cards, permits, and licenses. Missouri's law
includes a prohibition against requiring an individual to use his or her
SSN as an employee number. Oklahoma's law is unique in that it only limits
the ways in which employers may use their employees' SSNs, and does not
apply more generally to other types of transactions and activities.
Some states have recently enacted other types of restrictions on the uses
of SSNs as well. Both Arkansas and Colorado prohibit the use of a
student's SSN as a student identification number. 20 New Mexico requires
businesses that have acquired consumer SSNs to adopt internal policies to
19 See Arkansas (Ark. Code Ann. S: 4-86-107 (2005)); Arizona (Ariz. Rev.
Stat. S: 44-1373 (2004)); Connecticut (Conn. Gen. Stat. S: 42-470 (2003));
Illinois (815 Ill. Comp. Stat. 505/2QQ (2004)); Maryland (Md. Code Ann.,
Com. Law S: 14-3301 et seq. (2005)); Michigan (Mich. Comp. Laws S: 445.81
et seq. (2004)); Minnesota (Minn. Stat. S: 325E.59 (2005)); Missouri (Mo.
Rev. Stat. S: 407.1355 (2003)); Oklahoma (Okla. Stat. tit. 40, S: 173.1
(2004)); Texas (Tex. Bus. & Com. Code Ann. 35.58 (2003)); and Virginia
(Va. Code Ann. S: 59.1-443.2 (2005)).
20 Ark. Code Ann. S: 6-18-208 (2005) and Colo. Rev. Stat. S: 23-5-127
(2003).
limit access to authorized employees.21 Texas recently enacted a law
requiring businesses to properly dispose of business records that contain
a customer's personal identifying information, which is defined to include
SSNs.22
Other recent state legislation includes new restrictions on state and
local government agencies. For example, South Dakota law prohibits the
display of SSNs on all driver's licenses and nondriver's identification
cards,23 while Indiana law prohibits a state agency from releasing a SSN
unless otherwise required by law. 24 In addition, a Nevada law requires
governmental agencies, except in certain circumstances, to ensure that the
SSNs recorded in their books and on their records are maintained in a
confidential manner.25
We also identified three states that have passed legislation containing
notification requirements in the event of a security breach, similar to
the recently enacted New York law requiring such notifications. California
requires a business or a California state agency to notify any California
resident whose unencrypted personal information was, or is reasonably
believed to have been, acquired by an unauthorized person.26 In the last
year, this law forced several large companies to notify individuals that
their information was compromised because of certain circumstances. Under
a Nevada law, government agencies and certain persons who do business in
the state must notify individuals if their personal information is
reasonably believed to have been compromised.27 Similarly, Georgia
requires certain private sector entities to notify their customers if a
security breach occurred that compromised their customers' personal
information, such as their SSNs.28
21 N.M. Stat. Ann. S: 57-12B-1 et seq. (2003).
22 Tex. Bus. & Com. Code Ann. 35.48 (2005).
23 S.D. Codified Laws S: 32-12-17.10 (2005); S: 32-12-17.13 (2005).
24 Ind. Code S: 4-1-10-1 et seq. (2005).
25 Nev. Rev. Stat. Chapter 239 (2005).
26 Cal. Civ. Code S: 1798.29 (2002); 1798.82 (2002).
27 Nev. Rev. Stat. Chapter 239B; Chapter 603 (2005).
28 Ga. Code Ann. S: 10-1-910 et seq. (2005).
At the time of this writing, Congress is also considering consumer privacy
legislation, which in some cases includes SSN restrictions. As of August
18, 2005, there were approximately 22 proposed bills pending before the
U.S. House and Senate. In many cases, the provisions being considered
mirrored provisions in enacted state laws. For example, some of the
proposed legislation included prohibitions on the display of SSNs, similar
to the concept of Colorado's law prohibiting the display of a person's SSN
on a license, pass, or certificate, issued by a public entity, except
under certain circumstances.29 Several other pieces of proposed federal
legislation address the solicitation of SSNs by public and private sector
entities. For example, one proposed bill prohibits business entities from
denying an individual goods or services for refusing to give an SSN for
account record purposes. Some states, such as Texas, Maine, and Colorado,
have also enacted SSN solicitation prohibitions or restrictions.30
In addition, some federal privacy legislation also proposed consumer
safeguards, such as security freezes and prohibitions on the sale and
purchase of SSNs. For example, some proposed federal legislation included
provisions that allow consumers to place a security "credit" freeze on
their information to bar lenders and others from reviewing their credit
history.31 Five proposed bills also introduced a prohibition on the sale
or purchase of individual's SSNs by both public and private sector
entities. In one instance, legislative provisions prohibit the sale of
customer information to a nonaffiliated third party, unless customer
consent is given. Additionally, roughly nine proposed pieces of federal
legislation contain security breach notification requirements, and two
proposed federal bills required the disposal of sensitive personal data,
such as SSNs.
Finally, some of the proposed federal legislation would preempt state law
and supersede some of the states' consumer protection statutes.32
29 Colo. Rev. Stat. S: 24-72.3-102 (2004).
30 Texas (Tex. Bus. & Com. Code Ann. S: 35.581 (2005)); Maine (Me. Rev.
Stat. Ann. tit. 10, S:1272-B (2003)); and Colorado (Colo. Rev. Stat. S:
24-33-110 (2004)).
31 Because few lenders will issue credit without first seeing a credit
report, it has been argued that this may help thwart identity thieves from
opening fraudulent accounts using the name of someone who has frozen his
or her credit reports.
32 Federal preemption may arise whenever Congress enacts a statute in an
area in which state legislatures have acted or have the authority to act.
Determining whether a federal law preempts state law may require judicial
resolution and turns on whether Congress intended that the federal law
override state law.
According to some privacy advocates, historically, federal privacy laws
have not preempted stronger state protections or enforcement efforts, and
they have said that the proposed preemption would reduce some consumer
privacy protections. However, some private sector entities have noted the
difficulty of doing business within the framework of many different state
laws and have advocated a uniform federal standard. See appendix IV for a
list of proposed federal legislation we identified.
Federal and State Legislation Exist to Address Identity Theft
The Identity Theft Act of 1998, the primary federal statute, criminalizes
fraud in connection with the theft and unlawful misuse of personal
identifiable information. The Identity Theft Act establishes the person
whose identity is stolen as a "true" victim and enables that victim to
seek restitution if there is a conviction. Previously, only the credit
grantors who suffered monetary losses were considered victims.
Additionally, Congress enacted FACTA in 2003, which amended FCRA and added
several provisions that were aimed at identity theft prevention and victim
assistance. For example, Congress enacted provisions that allow an
individual to obtain a free copy of his or her credit report annually for
selfmonitoring.
Many states have laws prohibiting the theft of identity information, and
where specific identity theft laws do not exist, the practices may be
prohibited under other state laws or the states may be considering such
legislation. For example, New York law makes identity theft a crime.33 In
other states, identity theft statutes also address specific crimes
committed under a false identity. For example, Arizona law prohibits any
person from using deceptive means to alter certain computer functions or
use software to collect bank information, take control of another person's
computer, or prevent the operator from blocking the installation of
specific software.34 In addition, Idaho law makes it unlawful to
impersonate any state official to seek, demand, or obtain personally
identifiable information of another person.35 Furthermore, some states
have also included identity theft victim assistance provisions in their
laws. For example, Washington law requires police and sheriff's
departments to provide a police report or original
33 N.Y. Penal Law S: 190.77-190.84 (2002). 34 Ariz. Rev. Stat. S: 44-7301
et seq. (2005). 35 Idaho Code S: 18-3126A (2005).
incident report at the request of any consumer claiming to be a victim of
identity theft.36
Because identity theft is typically not a stand-alone crime, but rather a
component of one or more complex crimes, such as computer fraud, credit
card fraud, or mail fraud, the federal laws that apply vary.37 For
example, with the theft of identity information, a perpetrator may commit
computer fraud when using a stolen identity to fraudulently obtain credit
on the Internet. Computer fraud may also be the primary vehicle used to
obtain identity information when the offender obtains unauthorized access
to another computer or Web site to obtain such information. As a result,
the offender may be charged with both identity theft and computer fraud.
According to a Department of Justice official, the investigation of
identity theft is labor intensive and individual cases are usually
considered to be too small for federal prosecution. Moreover, perpetrators
usually prey on multiple victims in multiple jurisdictions. Consequently,
a number of federal law enforcement agencies can have a role in
investigating identity theft crimes. How the thief uses an individual's
identity usually dictates which federal agency has jurisdiction in the
case. For example, if an individual finds that an identity thief has
stolen the individual's mail to obtain credit cards, bank statements, or
tax information, the victim should report the crime to the U.S. Postal
Inspection Service, the law enforcement arm of the U.S. Postal Service. In
addition, violations are investigated by other federal agencies, such as
the Social Security Administration Office of the Inspector General, the
U.S. Secret Service, the Federal Bureau of Investigation (FBI), the U.S.
Securities and Exchange Commission, the U.S. Department of State, the U.S.
Department of Education Office of Inspector General, and the Internal
Revenue Service. The Department of Justice prosecutes federal identity
theft cases. Table 2 highlights some of the jurisdictional
responsibilities of some federal agencies.
36 Wash. Rev. Code S: 19.182.160 (2005) [not yet codified]. 37 18 U.S.C.
S:1028(a)(1)-(6); 18 U.S.C. S:1029; 18 U.S.C. S:1341.
Table 2: List of Federal Agencies with Some Identity Theft Jurisdiction
Federal agency Jurisdictional identity theft highlights
Social Security Administration's Investigates SSN misuse involving the
buying and selling of SSN cards. Office of the Inspector General
U.S. Secret Service Investigates crimes associated with financial
institutions; investigations include bank fraud, access device fraud
involving credit and debit cards, telecommunications and computer crimes,
fraudulent identification, fraudulent government and commercial
securities, and electronic funds transfer fraud.
Federal Bureau of Investigation Investigates cases of identity theft;
investigations can include bank fraud, mail fraud, wire fraud, bankruptcy
fraud, insurance fraud, and fraud against the government. In addition, FBI
sponsors a national Identity Theft Working Group, where participants from
law enforcement, federal regulatory bodies, and the financial services
industry meet regularly to discuss identity theftrelated issues.
U.S. Securities and Exchange Investigates investment fraud in instances
where an identity thief has tampered with securities Commission
investments or brokerage accounts.
U.S. Department of State Investigates passport fraud in instances where a
passport is used fraudulently.
U.S. Department of Education Investigates fraudulent student loan
activity. Office of Inspector General
Internal Revenue Service Investigates tax fraud where identity theft may
relate directly to tax records.
Source: GAO analysis.
Conclusions
SSNs are still widely used and publicly available, although they have
become less so in the last year. Given the significance of the SSN in
committing fraud or stealing a person's identity, it is imperative that
steps be taken to protect this number. This is especially true as
information technology makes it easier to access individuals' personal
information. The increased availability and aggregation of personal
information in public and private sector databases and via the Internet
has provided new opportunities for individuals to engage in fraudulent
activities. Without proper regulations or safeguards in place, SSNs will
remain vulnerable to misuse, thus adding to the growing number of identity
theft victims.
Current federal restrictions on SSNs and other personal information are
industry specific and do not apply broadly. Certain industries, such as
the financial services industry, are required to protect individuals'
personal information while others are not. In addition, given the industry
specific nature of federal laws, no single federal agency has
responsibility for ensuring the protection of individuals' personal
information. Consequently, gaps remain at the federal level in protecting
individuals' personal information.
State legislatures have also placed restrictions on SSNs by enacting laws
that restrict the use and display of SSNs and prohibit the theft of
individuals' personal information. However, gaps also remain at the state
level because not all states have enacted laws to protect individuals'
personal information. In addition, while there is some consistency among
enacted state laws, privacy protections and identity theft prevention
varies with the focus of each state's legislature.
As legislatures at both the federal and state level continue to enact laws
to protect individuals' personal information, gaps in protections will
need to be determined and addressed in order to prevent SSNs and other
personal information from being misused. We are pleased that the Assembly
is concentrating on this important policy issue, and we hope our work will
be helpful to you. That concludes my testimony, and I would be pleased to
respond to any questions.
Contacts and Acknowledgments
For further information regarding this testimony, please contact Barbara
D. Bovbjerg, Director or Tamara Cross, Assistant Director, Education,
Workforce, and Income Security at (202) 512-7215. Individuals making key
contributions to this testimony include Margaret Armen, Pat Bernard, Mindy
Bowman, Richard Burkard, Rachael Chamberlin, Amber Edwards, Jason
Holsclaw, Joel Marus, and Sheila McCoy.
Appendix I: Federal Statutes That Authorize or Mandate the Collection and
Use of SSNs by Government Entities
General purpose for
collecting or using the Social Security
number (SSN)
Federal statute Government entity and authorized or required use
Tax Reform Act of 1976 General public assistance programs, tax 42 U.S.C.
405(c)(2)(c)
administration, driver's license, motor vehicle registration
Authorizes states to collect and use SSNs in administering any tax,
general public assistance, driver's license, or motor vehicle registration
law
Food Stamp Act of 1977 as amended Food Stamp Program Mandates the Secretary of
Agriculture and 7 U.S.C. 2025(e)(1)
state agencies to require SSNs for program participation
Deficit Reduction Act of 1984 42 U.S.C. 1320b-7(a) and (b)
Eligibility for federal benefits under state administered program
Requires that, as a condition of eligibility for Medicaid benefits and
other federal benefit programs, applicants for and recipients of these
benefits furnish their SSNs to the state administering program
Comprehensive Omnibus Budget Financial Assistance Requires students to provide
their SSNs
Reconciliation Act of 1986 20 U.S.C. 1091(a)(4)
when applying for federal student financial aid
Housing and Community Development Act Eligibility for the Department of
Housing of 1987 42 U.S.C. 3543(a) and Urban Development programs
Family Support Act of 1988 Issuance of birth certificates 42 U.S.C.
405(c)(2)(C)( ii)
Technical and Miscellaneous Revenue Act Blood donation of 1988 42 U.S.C.
405(c)(2)(D)(i)
Food, Agriculture, Conservation, and Trade Retail and wholesale businesses
Act of 1990 42 U.S.C. 405(c)(2)(C)(iii) participation in food stamp
program Authorizes the Secretary of the Department of Housing and Urban
Development to require program applicants and participants to submit their
SSNs as a condition of eligibility
Requires states to obtain parents' SSNs before issuing a birth certificate
unless there is good cause for not requiring the number
Authorizes states and political subdivisions to require that blood donors
provide their SSNs
Authorizes the Secretary of Agriculture to require the SSNs of officers or
owners of retail and wholesale food concerns that accept and redeem food
stamps Omnibus Budget Reconciliation Act of 1990 Eligibility for Veterans
Affairs compensation Authorizes the Secretary of Veterans
38 U.S.C. 5101(c) or pension benefits programs Affairs to require
individuals to provide their SSNs to be eligible for Department of
Veterans Affairs' compensation or pension benefits programs
Social Security Independence and Program Eligibility of potential jurors
Authorizes states and political subdivisions Improvements Act of 1994 of
states to use SSNs to determine 42 U.S.C. 405(c)(2)(E)(ii) eligibility of
potential jurors
General purpose for
collecting or using the Social Security Government entity and Federal
statute number (SSN) authorized or required use
Personal Responsibility and Work Various license applications, divorce and
Mandates that states have laws in effect
Opportunity Reconciliation Act of 1996 child support documents, death
certificates that require collection of SSNs on
42 U.S.C. 666(a)(13) applications for driver's licenses and other
licenses; requires placement in the pertinent records of the SSN of the
person subject to a divorce decree, child support order, paternity
determination; requires SSNs on death certificates
Higher Education Act Amendments of 1998 Financial assistance Authorizes
the Secretary of Education to
20 U.S.C. 1090(a)(7) request SSNs of parents of dependent students
applying for federal student financial aid
Internal Revenue Code Tax returns Authorizes the Commissioner of the
(various
amendments) 26 U.S.C. 6109 Internal Revenue Service to
require that
individuals include their SSNs on
tax
returns
Source: GAO review of applicable federal laws.
Appendix II: Federal Laws Affecting Information Resellers, CRAs, and
Health Care Organizations
Fair Credit Reporting Act (FCRA)
Congress has limited the use of consumer reports to protect consumers'
privacy. All users must have a permissible purpose under FCRA to obtain a
consumer report. Some of these permissible purposes are
o for the extension of credit as a result of an application from a
consumer or the review or collection of a consumer's account, for
employment purposes, including hiring and promotion decisions, where the
consumer has given written permission;
o for the underwriting of insurance as a result of an application from a
consumer;
o when there is a legitimate business need, in connection with a
business transaction that is initiated by the consumer; and
o to review a consumer's account to determine whether the consumer
continues to meet the terms of the account.
Fair and Accurate Credit FACTA added new sections to FCRA intended
primarily to help
Transaction Act (FACTA) consumers prevent and combat identity theft. Some
of the provisions include
o o
o
o
allowing consumers to obtain a free copy of their credit report,
the truncation of credit and debit card account numbers and the truncation
of SSNs if requested,
requirements for the disposal of consumer report information or records,
obligations for furnishers of information to investigate and correct
inaccurate information recorded in a consumer's credit report.
Gramm-Leach-Bliley Act GLBA requires companies to give consumers privacy
notices that explain
(GLBA) the institutions' information-sharing practices. In turn,
consumers have the right to limit some, but not all, sharing of their
nonpublic personal information. Financial institutions are permitted to
disclose consumers' nonpublic personal information without offering them
an opt-out right in some of the following circumstances:
o to effect a transaction requested by the consumer in connection with a
financial product or service requested by the consumer; maintaining or
servicing the consumer's account with the financial institution or another
entity as part of a private label credit card program or other extension
of credit; or a proposed or actual securitization, secondary market sale,
or similar transaction;
o to protect the confidentiality or security of the consumer's records;
to prevent actual or potential fraud, for required institutional risk
control or for resolving customer disputes or inquiries, to persons
holding a legal or beneficial interest relating to the consumer, or to the
consumer's fiduciary;
o to the extent specifically permitted or required under other
provisions of law and in accordance with the Right to Financial Privacy
Act of 1978, to law enforcement agencies, self-regulatory organizations,
or for an investigation on a matter related to public safety;
o to a consumer reporting agency in accordance with the Fair Credit
Reporting Act or from a consumer report reported by a consumer reporting
agency;
o to comply with federal, state, or local laws; an investigation or
subpoena; or to respond to judicial process or government regulatory
authorities. Financial institutions are required by GLBA to disclose to
consumers at the initiation of a customer relationship, and annually
thereafter, their privacy policies, including their policies with respect
to sharing information with affiliates and non-affiliated third parties.
Drivers Privacy Protection Act (DPPA)
The DPPA specifies a list of exceptions when personal information
contained in a state motor vehicle record may be obtained and used. Some
of these permissible purposes include
o for use by any government agency in carrying out its functions;
o for use in connection with matters of motor vehicle or driver safety
and theft; motor vehicle emissions; motor vehicle product alterations,
recalls, or advisories; motor vehicle market research activities,
including survey research;
o for use in the normal course of business by a legitimate business, but
only to verify the accuracy of personal information submitted by the
individual to the business and, if such information is not correct, to
obtain the correct information but only for purposes of preventing fraud
by pursuing legal remedies against, or recovering on a debt or security
interest against, the individual;
o for use in connection with any civil, criminal, administrative, or
arbitral proceeding in any federal, state, or local court or agency;
o for any other use specifically authorized under a state law, if such
use is related to the operation of a motor vehicle or public safety.
Health Insurance Portability and Accountability Act (HIPAA)
The HIPAA privacy rule also defines some rights and obligations for both
covered entities and individual patients and health plan members. Some of
the highlights are
o Individuals must give specific authorization before health care
providers can use or disclose protected information in most nonroutine
circumstances, such as releasing information to an employer or for use in
marketing activities.
o Covered entities will need to provide individuals with written notice
of their privacy practices and patients' privacy rights. The notice will
contain information that could be useful to individuals choosing a health
plan, doctor, or other service provided. Patients will be generally asked
to sign or otherwise acknowledge receipt of the privacy notice.
Covered entities must obtain an individual's specific authorization before
sending them marketing materials.
Appendix III: Examples of Enacted State SSN Legislation Restricting Use
State
(year passed) Code section Summary of key provisions
Arizona Ariz. Rev. Stat. S: Generally prohibits any person or entity from
44-1373 (1) intentionally communicating
(2004) or otherwise making an individual's SSN
available to the general public; (2)
printing an individual's SSN on any card
required to receive products or
services; (3) requiring an individual to
transmit his or her SSN over the
Internet unless the number is encrypted or the
connection is secure; (4)
requiring the use of a SSN to access an
Internet Web site unless a password
or other security device is used; and (5)
printing an individual's SSN on any
material to be mailed to the individual,
unless the inclusion of the SSN is
required by law.
Arkansas Ark. Code Ann. S: Generally prohibits any person or entity from
4-86-107 (1) publicly posting or displaying
(2005) an individual's SSN in any manner; (2) printing
an individual's SSN on any
card required to receive products or services;
(3) printing an individual's SSN
on a postcard or in any other manner by which
the SSN is visible from the
outside; and (4) requiring an individual to
transmit his or her SSN over the
Internet unless the number is encrypted or the
connection is secure.
Arkansas Ark. Code Ann. S: Generally prohibits schools and school
6-18-208 districts from using, displaying,
(2005) releasing, or printing a student's SSN or any
part thereof on any report, ID
card or badge, or any document that will be
made available to the public, a
student, or a student's parent or guardian
without the express written consent
of the parent, if the student is a minor, or
the student if the student is 18 years
of age or older.
California Cal. Civ. Code S: Generally prohibits any person or entity from
1798.85 (1) publicly posting or displaying
(2001) an individual's SSN in any manner; (2)
printing an individual's SSN on any
card required to receive products or
services; (3) requiring an individual to
transmit his or her SSN over the Internet
unless the number is encrypted or
the connection is secure; (4) requiring the
use of a SSN to access an Internet
Web site unless a password or other security
device is used; and (5) printing
an individual's SSN on any material to be
mailed to the individual, unless the
inclusion of the SSN is required by law.
California Cal. Fam. Code S: Authorizes a petitioner or respondent to
2024.5 redact SSNs from pleadings,
(2004) attachments, documents, or other material
filed with the court pursuant to a
petition for dissolution of marriage,
annulment, or legal separation, except as
specified. Requires that filing forms contain
a notice of the right to redact
SSNs.
Colorado Colo. Rev. Stat. S: Requires each institution of higher education
23-5-127 to assign a unique identifying
(2003) number to each student enrolled at the
institution starting. Prohibits the use of
a student's SSN as the unique identifying
number. Requires institutions of
higher learning to take reasonable and
prudent steps to ensure the privacy of
students' SSNs.
Connecticut Conn. Gen. Stat. S: Generally prohibits any person or entity,
42-470 except government entities, from (1)
publicly posting or displaying an
(2003) individual's SSN in any manner; (2)
printing
an individual's SSN on any card required
to receive products or services; (3)
requiring an individual to transmit his or
her SSN over the Internet unless the
number is encrypted or the connection is
secure; and (4) requiring the use of
a SSN to access an Internet Web site
unless a password or other security
device is used.
State
(year passed) Code section Summary of key provisions
Prohibits entities purchasing all or
Connecticut Conn. Gen. Stat. S: part of a housing project from a
8-64b housing
(2004) authority from disclosing to the public
tenant SSNs or bank account numbers
contained in lease agreements.
Delaware Del. Code Ann., tit. Insures that SSNs provided by hunting,
7 S: 503 fishing, and trapping license holders
(2004) would not be released to the public.
Florida Fla. Stat. ch. Exempts a voter's SSN, driver's license
97.05851 number, state identification number,
(2005) and signature from the public
disclosure laws.
Ga. Code Ann. S: Provides that public disclosure shall
Georgia 50-18-72 not be required for records that would
(2004) reveal the home address or telephone
number, SSN, or insurance or medical
information of certain state employees.
Prohibits the use of a registered
Hawaii Haw. Rev. Stat. S: voter's SSN as identifying information
12-32 on
(2005) candidate nomination papers.
Illinois 815 Ill. Comp. Stat. Generally prohibits any person or entity
505/2QQ3 from (1) publicly posting or displaying
(2004) an individual's SSN in any manner; (2)
printing an individual's SSN on any
card required to receive products or
services; (3) requiring an individual to
transmit his or her SSN over the Internet
unless the number is encrypted or
the connection is secure; (4) requiring the
use of a SSN to access an Internet
Web site unless a password or other security
device is used; and (5) printing
an individual's SSN on any material to be
mailed to the individual, unless the
inclusion of the SSN is required by law.
Indiana Ind. Code S: 4-1-10-1 et seq. Generally prohibits a state agency
from disclosing an individual's SSN, unless (2005) otherwise required by
law.
Indiana Ind. Code S: 9-24-6-2; S: 9-24-9-2; Removes the requirement that
SSNs be displayed on commercial driver's
(2005) S: 9-24-11-5; S: 9-24-16-3 licenses. Requires that applications
for driver's licenses, permits, and identification cards allow applicants
to indicate whether the SSN or another distinguishing number shall be used
on the license, permit, or identification card, and prohibits the use of
the SSN if the applicant does not indicate a preference.
Louisiana La. Rev. Stat. Ann. 9:5141; 35:17 Requires that only last four
digits of SSN appear on mortgage records and (2004) notarial acts.
1 As currently codified, Fla. Stat. ch. 97.0585 does not contain the
provisions summarized here. The changes will take effect on January 1,
2006.
2 Not yet codified.
3 The provisions summarized here are codified, but will not take effect
until July 1, 2006.
State
(year passed) Code section Summary of key provisions
Maryland Md. Code Ann., Com. Law S: 14-Generally prohibits any person or
entity, except government entities, from (1)
4
(2005) 3301 et seq. publicly displaying or posting an individual's SSN;
(2) printing an individual's SSN on any card required to receive products
or services; (3) requiring an individual to transmit his or her SSN over
the Internet unless the number is encrypted or the connection is secure;
(4) initiating the transmission of an individual's SSN unless the
connection is secure; (5) requiring the use of a SSN to access an Internet
Web site unless a password or other security device is used; (6) printing
an individual's SSN on any material to be mailed to the individual, unless
the inclusion of the SSN is required by law; (7) electronically
transmitting an individual's SSN unless the connection is secure or the
SSN is encrypted; and (8) faxing an individual's SSN to that individual.
Michigan Mich. Comp. Laws S: 445.81 et Generally prohibits any person or
entity from (1) publicly posting or displaying
(2004) seq.
more than four sequential digits of an individual's SSN; (2) using more
than four sequential digits of an individual's SSN as the primary account
number for an individual; (3) visibly printing more than four sequential
digits of an individual's SSN on any identification badge or card,
membership card, or permit or license; (4) requiring an individual to
transmit more than four sequential digits of his or her SSN over the
Internet unless the number is encrypted or the connection is secure; (5)
requiring the use of more than four sequential digits of an individual's
SSN to access an Internet Web site unless a password or other security
device is used; and (6) printing more than four sequential digits of an
individual's SSN on any material to be mailed to the individual.
Minnesota Minn. Stat. S: Generally prohibits any person or entity, except
325E.595 government entities, from (1)
(2005) publicly posting or displaying an individual's
SSN in any manner; (2) printing
an individual's SSN on any card required to
receive products or services; (3)
requiring an individual to transmit his or her
SSN over the Internet unless the
number is encrypted or the connection is secure;
(4) requiring the use of a
SSN to access an Internet Web site unless a
password or other security
device is used; and (5) printing an individual's
SSN on any material to be
mailed to the individual, unless the inclusion of
the SSN is required by law.
Missouri Mo. Rev. Stat. S: Generally prohibits any person or entity,
407.1355 except government entities, from (1)
(2003) publicly displaying or posting an individual's
SSN, including any activity that
would make the SSN available to an individual's
coworkers, (2) requiring an
individual to transmit his or her SSN over the
Internet unless the number is
encrypted or the connection is secure, (3)
requiring the use of a SSN to
access an Internet Web site unless a password
or other security device is
used, and (4) requiring an individual to use
his or her SSN as an employee
number.
4 Not yet codified. 5 Not yet codified.
State
(year passed) Code section Summary of key provisions
Nevada Nev. Rev. Stat. Chapter Requires a governmental entity, except in
239; certain circumstances, to ensure
(2005) Chapter 239B; Chapter that SSNs in its books and records are
603 maintained in a confidential manner.
Prohibits the inclusion of SSNs in certain
documents that are recorded, filed,
or otherwise submitted to a governmental
agency. Requires governmental
agencies or certain persons who do business
in the state to notify individuals
if personal information is reasonably
believed to have been acquired by an
unauthorized person.
New Jersey N.J. Stat. Ann. S: Prohibits any person, including any public
47:1-16 or private entity, from printing or
(2005) displaying in any manner an individual's SSN
on any document intended for
public recording with any county recording
authority. Provides that, in the
case of certain documents, the county
recording authority is authorized to
delete, strike, obliterate or otherwise
expunge an SSN that appears on the
document without invalidating it.
New Mexico N.M. Stat. Ann. S: Prohibits a business from requiring a
57-12B-1 et consumer's SSN as a condition for the
(2003) consumer to lease or purchase products,
seq. goods or services from the
business. A company acquiring or using SSNs
of consumers shall adopt
internal policies that (1) limit access to
the SSNs to those employees
authorized to have access to that
information to perform their duties; and (2)
hold employees responsible if the SSNs are
released to unauthorized
persons.
North Dakota N.D. Cent. Code S: 39-06-14 Prohibits the use of SSNs on
driver's licenses. (2003)
Oklahoma Okla. Stat. tit. 40, Generally prohibits employing entity from
S: 173.1 (1) publicly displaying or posting an
(2004) employee's SSN; (2) printing the SSN of an
employee on any card required
for the employee to access information,
products, or services; (3) requiring an
employee to transmit his or her SSN over the
Internet unless the number is
encrypted or the connection is secure; (4)
requiring an employee to use an
SSN to access an Internet Web site unless a
password or other security
device is used; and (5) printing an
employee's SSN on any materials mailed
to the employee, unless the SSN is required
by law to be in the materials.
Rhode Island R.I. Gen. Laws S: Prohibits any person, firm, corporation, or
6-13-19 other business entity that offers
(2004) discount cards for purchases made at any
business maintained by the offeror
from requiring that a person who applies
for a discount card furnish his or her
SSN or driver's license as a condition
precedent to the application for the
consumer discount card.
S.C. Code Ann. S: SSNs provided in voter registration
South Carolina 7-5-170 applications must not be open to
public
(2004) inspection.
Prohibits the display of SSNs on
South Dakota S.D. Codified Laws S: driver's licenses or non-driver's
32-12- identification
(2005) 17.10; S: 32-12-17.13 cards and the use of electronic
barcodes containing SSN data.
Texas Tex. Bus. & Com. Code Requires that businesses disposing
Ann. of business records containing a
customer's personal identifying
(2005) 35.48 information must modify, by
shredding,
erasing, or other means, the
personal identifying information to
make it
unreadable or undecipherable.
State
(year passed) Code section Summary of key provisions
Texas Tex. Bus. & Com. Code Generally prohibits any person or entity,
Ann. except government entities, from (1)
(2003) 35.58 intentionally communicating an individual's
SSN to the general public; (2)
printing an individual's SSN on any card
required to access or receive
products or services; (3) requiring an
individual to transmit his or her SSN
over the Internet unless the number is
encrypted or the connection is secure;
(4) requiring the use of a SSN to access an
Internet Web site unless a
password or other security device is used;
and (5) printing an individual's
SSN on any materials mailed to the
individual, unless the SSN is required by
law to be in the materials.
Texas Tex. Elec. Code Ann. S: Provides that a SSN, Texas driver's license
13.004 number, or number of a personal
(2003) identification card furnished on a voter
registration application is confidential
and does not constitute public information.
Requires the registrar to ensure
that such personal data are excluded from
disclosure.
Utah Utah Code Ann. S: Prohibits insurers from publicly posting an
31A-21-110 individual's SSN in any manner or
(2004) printing an individual's SSN on any card
required for the individual to access
products or services provided or covered by
the insurer.
Virginia Va. Code Ann. S: Generally prohibits any person or entity from
59.1-443.2 (1) intentionally communicating
(2005) an individual's SSN to the general public; (2)
printing an individual's SSN on
any card required to access or receive products
or services; (3) requiring the
use of a SSN to access an Internet Web site
unless a password or other
security device is used; and (4) mailing a
package with the SSN visible from
the outside.
Wisconsin (2003)
Wis. Stat. S: 36.32 Prohibits private institutions of higher education
from assigning to any student an identification number that is identical
to or incorporates the student's SSN.
West Virginia
W. Va. Code S: 17E-1-11 Removes the requirement that a SSN appear on commercial
driver's license.
(2003)
Source: GAO analysis.
Appendix IV: List of Proposed Federal Legislation as of August 2005
Bill Number Title Selected Provisions
H.R. 3375 Financial Data Security Act of 2005
Consumer must be notified if investigation reveals that information would
cause substantial inconvenience or harm.
H.R. 3374 Consumer Notification and
Financial Data Protection Act of 2005
Provide written notice to consumer whose sensitive financial personal
information was compromised in a data breach; sensitive financial personal
data must be properly disposed of so that such information or compilation
cannot practicable be read or reconstructed.
S. 1408 Identity Theft Protection Act If a covered entity determines that
a breach of security affects sensitive personal information, the entity
must notify each individual; a consumer can request a security freeze on
his/her credit report; no covered entity may solicit any SSN from an
individual unless there is a specific use of the SSN for which no other
identifier can be reasonably used; SSNs can not be printed on (1) any
identification card or tag (2) driver's licenses.
H.R. 3140 Consumer Data Security Amends the Fair Credit Reporting Act
and to cover any persons that communicates
personally identifiable or financial
Notification Act of 2005 information for compensation. Requires
identity
verification of any person requesting
consumer reports. Protects nonpublic
consumer information. Requires notice
of security breach.
S. 1332 Personal Data Privacy No person may (1) display any individual's
and SSN to a third party without the
Security Act of 2005 voluntary and affirmatively expressed
consent of such individual, (2) sell or
purchase any SSN of an individual without
the voluntary and affirmatively
expressed consent of such individual, or (3)
harvest SSNs from federal public
records for the purpose of displaying or
selling such number to the public.
S. 1336 Consumer Identity Protection Customer has the right to request
that a consumer reporting agency place a and Security Act security freeze
on a private information file.
S. 810 SAFE-ID Act Generally, prohibits business enterprises
from disclosing personally identifiable
information regarding U.S. residents to any
branch, affiliate, subcontractor, or
unaffiliated third party located in a
foreign country.
S. 768 Comprehensive Identity In general, no person may solicit any SSN
Theft unless (1) the SSN is necessary for the
Prevention Act normal course of business or (2) there is a specific use
for the SSN for which no other identifying number can be used; no employer
may display the SSN on any identification card issued to its employees; it
shall be unlawful for any person to (1) sell or purchase an SSN or display
to the general public an SSN or (2) obtain or use an SSN for the purpose
of locating or identifying an individual with the intent to cause physical
harm or use the identity of such individual.
H.R. 220 Identity Theft Prohibits using an SSN except for specified Social
Prevention Security and tax purposes;
Act of 2005 prohibits the Social Security Administration from
divulging the Social Security
account number of an individual to any federal,
state, or local government agency
or instrumentality, or to any other individual.
H.R. 92 To amend title XVIII of the Directs the Secretary of Health and
Human Services to establish a procedure Social Security Act to permit
under which, upon the request of an individual entitled to Medicare
benefits, the Medicare beneficiaries upon Secretary shall provide for the
issuance of an (1) identification number other than request to use an
identification the individual's Social Security account number for
Medicare purposes and (2) an number other than a social appropriate
Medicare card containing such an alternative identification number.
security account number under the Medicare Program in order to deter
identity theft.
Bill Number Title Selected Provisions
H.R. 82 Social Security On-line Privacy Prohibits an interactive computer
service from disclosing to a third party an Protection Act individual's
Social Security number or related personally identifiable information
without the individual's prior informed written consent.
Internet Spyware Amends the federal criminal code to
H.R. 744 (I-SPY) prohibit intentionally accessing a
protected
Prevention Act of 2005 computer without authorization, or
exceeding authorized access, by causing a
computer program or code to be copied onto
the protected computer and
intentionally using that program or code:
to obtain or transmit personal information
(including an SSN or other
government-issued identification number, a
bank or
credit card number, or an associated
password or access code) with intent to
defraud or injure a person or cause damage
to a protected computer.
H.R. 1069 Notification of Risk to Personal Amends the Gramm-Leach-Bliley
Act to require a financial institution, at which a Data Act breach of
personal information is reasonably believed to have occurred, to promptly
notify each affected customer; amends the Fair Credit Reporting Act to
require a consumer reporting agency to maintain a fraud alert file with
respect to any consumer upon receiving notice of a breach of personal
information.
H.R. 1078 Social Security Number Protection Act of 2005
H.R. 1745 Social Security Number Privacy and Identity Theft Prevention
Act of 2005 Amends the Social Security Act to establish criminal penalties
for the sale and purchase of the Social Security number and Social
Security account number of any person, except without consent or in
certain circumstances.
Amends title II of the Social Security Act to (1) specify restrictions on
the sale and display to the general public of by federal, state, and local
governments and bankruptcy case trustees; (2) prohibit the display of SSNs
on checks issued for payment by such governments; (3) prohibit the
federal, state, or local government display of SSNs on employee
identification cards or tags (IDs); (4) prohibit access to the SSNs of
other individuals by prisoners employed by federal, state, or local
governments; and (5) prohibit the selling, purchasing, or displaying of
SSNs (with certain exceptions), or the obtaining or use of any
individual's SSN to locate or identify such individual with the intent to
physically injure or harm such individual or to use the individual's ID
for any illegal purpose by any person.
Stop the Theft of Our Prohibit disclosure of an individual's
H.R. 2518 Social SSN services on Medicare-related
mailings.
Security Numbers Act of
2005
Requires federal agencies when
H.R. 2840 Federal Agency publishing a general notice of proposed
Protection of rule
making and when such rule making
Privacy Act of 2005 pertains to the collection, maintenance,
use,
or disclosure of personally identifiable
information from ten or more individuals
to
prepare an initial assessment describing
the rule's impact on individual privacy.
S. 29 Social Security Number Misuse Amends the federal criminal code to
prohibit the display, sale, or purchase of Protection Act SSNs without the
affirmatively expressed consent of the individual, except in specified
circumstances.
S. 115 Notification of Risk to Personal Requires any entity that owns or
licenses electronic data containing personal Data Act information,
following the discovery of a breach of security of the system containing
such data, to notify any U.S. resident whose personal information was, or
is reasonably believed to have been, acquired by an unauthorized person.
S. 116 Privacy Act of 2005 Prohibits the sale and disclosure of
personally identifiable information by a commercial entity to a
nonaffiliated third party unless prescribed procedures for notice and
opportunity to restrict such disclosure have been followed; prohibits the
display, sale, or purchase SSNs without the affirmatively expressed
consent of the individual; prohibits the use of SSNs on (1) checks issued
for payment by governmental agencies and (2) driver's licenses or motor
vehicle registrations; prohibits a commercial entity from requiring
disclosure of an individual's SSN in order to obtain goods or services.
Bill Number Title Selected Provisions
S. 751 Notification of Risk to Personal Requires any federal agency or
person that owns, licenses, or collects personal Data Act information data
following the discovery of a breach its personal data security system, or
upon receiving notice of a system breach, to notify (as specified) the
individual whose information was obtained by an unauthorized person.
Amends GLBA to require a financial
S. 1216 Financial Privacy Breach institution to promptly notify the
following
Notification Act of 2005 entities whenever a breach of personal
information has occurred at such
institution (1) each customer affected by
such breach, (2) certain consumer
reporting agencies, and (3) appropriate
law enforcement agencies.
Source: GAO Analysis.
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