Thursday, February 25, 2010

Your Social Security Number ~ FYI

When You Should, Shouldn't Give Out Your Social Security Number
Karen J. Bannan Wednesday, February 24, 2010

Just because someone asks for it doesn't mean you have to comply, says Michael J. Arata, the author of "Identity Theft For Dummies," especially since there are only a handful of organizations that actually have a valid need for it. For instance, anytime you're applying for credit -- for a new credit card, a loan, new telephone or cellular service -- the creditor will need your Social Security number to run a credit check. You'll also need to provide it if you are applying for federal or local government benefits such as Social Security, Medicare or Medicaid, unemployment insurance or disability. Another example: If you or your children receive services or aid at the state or local level, such as free or reduced fee lunch or financial aid. The local motor vehicle department, thanks to the USA PATRIOT Act, has the legal right to ask for Social Security numbers, too. In addition, when you complete a cash transaction totaling more than $10,000 you'll be required to provide your number so that transaction can be reported to the Internal Revenue Service, says ITRC's Foley.

Medical professionals have their own impetus, says the ITRC's Foley. "The reason a doctor or a dentist asks for your Social Security number is that, should you die while under his or her care, they are required to put your Social Security number on the death certificate," says Foley.

Even so, fulfilling non-credit-related requests -- even medical-related requests -- is purely optional, says L. Jean Camp, an associate professor at Indiana University and the author of "Economics of Identity Theft." "The problem is that you have the right to say that you're not going to give out your Social Security number, but a business owner has the right to say he's not going to do business with you," says Camp. "Most companies aren't being malicious. They're just being cautious by giving themselves a way to track you down if you don't pay a bill."

One of the best ways to get out of giving your Social Security number to someone is to simply overlook it on your paperwork, says Arata. You may get by without a confrontation. If you're questioned, however, ITRC's Foley suggests being proactive. "The most basic thing you can do is ask the person or organization why they need it. One of the most powerful things you can say is, 'Is there a law or requirement that I must provide it to you, and can you tell me what it is?' You can also ask the person requesting your Social what will happen if you don't disclose it," she says.
Often, as in the case of a school or a charitable organization, they simply want it to use your number as a unique identifier. In that case, says Javelin Strategy & Research's Van Dyke, you'll need to start negotiating again. "Say, 'In order for me to become your customer, I really need you to find an alternative recordkeeping method because I know giving out my Social Security number places me at great risk.' When you say it like that you may get better results," he says.

Even doctor or dentist offices should be willing to forgo your Social Security number -- especially if you have health insurance. And if they won't? Ask to give your information directly to the doctor and have him or her input it into the system for you, says Van Dyke. ITRC's Foley says most medical offices may also feel comfortable without it as long as they have an emergency contact on file -- someone who knows your Social Security number and could provide it in the event of death.

And what of the worst case scenario -- when you absolutely can't get out of it, but you still don't feel comfortable? You can always make up a number, says Camp, but if you do, make sure you write it down and don't inadvertently steal someone else's identity. "If you go this route as a last resort, make sure you put zeros in for the two middle numbers," she says. "There are no Social Security numbers that have double zeros in that section."

When Must You Provide Your Social Security Number?

Mandatory
Credit applications
Cash transactions over $10,000
When applying for certain federal benefits
Military paperwork
The Department of Motor Vehicles
Optional
Doctor and dentist intake forms
Supermarkets
Drugstores
Preschools
Airlines
.

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