How Can Social Security Identity Theft Occur

How Does Social Security Identity Theft Happen

Eye on Oversight: Medical Identity Theft

There are several ways an SSN can end up with a thief. Some involve physical theft, and others can take the digital route. To what extent are SSNs at risk? Notably, there was the Equifax breach of 2017, which exposed some 147 million SSNs. Yet just because an SSN has been potentially exposed does not mean that an identity crime has been committed with it.

So, lets start with the basics: how do SSNs get stolen or exposed?

Thats quite the list. Broadly speaking, the examples above give good reasons for keeping your SSN as private and secure as possible. With that, its helpful to know that there are only a handful of situations where your SSN is required for legitimate purposes, which can help you can make decisions about how and when to give it out. The list of required cases is relatively short, such as:

When applying for credit or a loan.
Transactions that require IRS notification, like working with investment firms, real estate purchases, auto purchases, etc.
Registering with a business as a full-time or contract employee .

Protect Your Information From Scammers Online And On Your Phone

If you use tax preparation software like TurboTax, TaxAct, or TaxSlayer, use multi-factor authentication. Multi-factor authentication offers extra security by requiring two or more credentials to log in to your account. The additional credentials you need to log in to your account fall into two categories: something you have like a passcode you get via text message or an authentication app, or something you are like a scan of your fingerprint, your retina, or your face. Multi-factor authentication makes it harder for scammers to log in to your accounts if they do get your username and password.

Dont give your personal information to someone who calls, emails, or texts and says theyre with the IRS. It could be a scammer impersonating the IRS to steal your information or money. If you need to contact the IRS, call them at 1-800-829-1040.

What To Do When Someone Steals Your Identity And Tax Refund

Thankfully, if the worst happens and someone files taxes using your personal info, here are four steps you can take to minimize the damage.

Get in touch with the IRS at 800-908-4490.

Fill out an IRS Identity Theft Affidavit found here.

Put a fraud alert on your credit record with the three major credit bureaus .

Contact the Federal Trade Commission and file a complaint here.

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Protect Yourself From Identity Theft

The OIG provides 10 tips on Protecting Personal Information and details several actions to take if you suspect identity theft.

If someone uses your SSN to obtain credit, loans, telephone accounts, or other goods and services, contact the Federal Trade Commission . The FTC collects complaints about identity theft from those whose identities have been stolen. You may reach the FTCs identity theft hotline toll free at 1-877-IDTHEFT or visit their website at www.ftc.gov/idtheft.

Additional Resources:

Its helpful to know facts about the alleged fraud, such as:

Description of the fraud.
Location where the fraud took place.
When the fraud took place.
How the fraud was committed.
Why the person committed the fraud .
Anyone else who has knowledge of the potential violation.

The OIG will carefully review your allegation and take appropriate action. However, they cannot provide information regarding the actions taken on any reported allegation. Federal regulations prohibit the disclosure of information contained in law enforcement records, even to the individual making the allegation.

To learn more about reporting fraud, visit the OIGs Reporting Other Issues page. You will find information about Misuse of SSNs, Elder Abuse, Direct Express Account Fraud, and more. Also, watch their video How to Report Social Security Fraud for more details about the fraud referral process.

How To Prevent Medical Identity Theft

In many ways, protecting yourself from medical identity theft can be similar to what you might already be doing to reduce the risk of other forms of identity theft.

For example, creating a unique and secure password for all your accounts can help minimize the fallout of a data breach at one company. Additionally, monitor your credit for hard inquiries , new accounts and collections accounts that could be an indication your personal information has been compromised.

Steps you can take to prevent medical identity theft, in particular, include:

Why Should I Care If Someone Steals My Identity

You will be responsible for what the thief does while using your personal information. You might have to pay for what the thief buys. This is true even if you do not know about the bills.

How can that happen?

A thief might get a credit card using your name.
He changes the address.
The bills go to him, but he never pays them.
That means the credit card company thinks you are not paying the bills.
That will hurt your credit.

This is the kind of trouble identity theft can cause for you.

Always Guard Your Ssn

To keep your SSN safe, it is important to use a secure password manager that encrypts the information you store in it. Password managers are best at keeping sensitive documents such as your passport or financial documents like your SSN safe and making sure they arent accidentally revealed during an interview process or background check. Job seekers should also know that they can skip giving their Social Security Number before applying for employment, waiting until after the job has been offered when instead an employer will collect this number on a separate background check authorization form rather than from any part of their application paperwork.

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Identity Theft: Don’t Be A Victim

What Is Identity Theft?

Identity theft occurs when someone uses another person’s personal information such as name, Social Security number, driver’s license number, credit card number, or other identifying information to take on that person’s identity in order to commit fraud or other crimes. Stealing an identity is, unfortunately, surprisingly easy to do and happens when you least expect it.

According to Javelin Strategy & Research, $16 billion was stolen from 15.4 million U.S. consumers in 2016, compared with $15.3 billion from 13.1 million victims a year earlier. In the past six years identity thieves have stolen over $107 billion.

How to Protect Yourself from Identity Theft

The following tips can help lower your risk of becoming a victim of identity theft.

Protect your Social Security number. Don’t carry your Social Security card or other cards that show your SSN. Read Identity Theft and Your Social Security Number. Do not print your SSN on checks or on your driver’s license.

Use caution when giving out your personal information. Scam artists phish victims by pretending to be banks, stores, shipping companies, or government agencies. They do this over the phone , in emails, in the postal mail, and sometimes in person. Phishers will attempt to scam you at your home or office.

Protect your postal mail. Retrieve mail promptly. Discontinue delivery while out of town.

On-Line Job Hunting. Be careful about sharing personal information when looking for a job online.

Social Security Fraud Statistics

Is your social security number putting you at risk for identity theft?

Social Security Fraud Statistics. The following are some Social Security fraud statistics based on studies conducted by the SSA:

The SSA currently ranks as the 3rd best amongst US government agencies when it comes to handling improper payments or fraud efficiently.
In the fiscal year 2018, along with the help received from the state and local law enforcement, the Cooperative Disability Investigations program reported a total sum amount of $188.5 million in projected savings for the disability programs. This resulted in an ROI of $17 for every $1 spent.
Social Security is the major source of income for most of the elderly. Nearly nine out of ten individuals over 65-years-old receive Social Security benefits.
In 2020, about 65 million Americans received over one trillion dollars in Social Security benefits.
An estimated 178 million workers were covered under Social Security in 2019.

Read More: About the Financial Action Task Force organization.Read More: What is the role of a Money Laundering Reporting Officer ?

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Report Identity Theft To Other Organizations

You can also report the theft to other organizations, such as:

Credit Reporting Agencies – Contact one of the three major credit reporting agencies to place a fraud alert or freeze on your credit report. Also get copies of your credit reports, to be sure that no one has already tried to get unauthorized credit accounts with your personal information. Confirm that the credit reporting agency will alert the other two credit reporting agencies.
National Long-Term Care Ombudsman Resource Center – Report cases of identity theft due to a stay in a nursing home or long-term care facility.
Financial Institutions – Contact the fraud department at your bank, credit card issuers and any other places where you have accounts.
Retailers and Other Companies – Report the crime to companies where the identity thief opened credit accounts or even applied for jobs.
State Attorney General Offices – Check with your state’s attorney general office for tips, checklists, or an advocate to help you recover from identity theft.

You may need to get new personal records or identification cards if you’re the victim of ID theft. Learn how to replace your vital identification documents after identity theft.

Learn How Idshield Can Help Protect Sensitive Personal Information

Monitoring critical areas where theft occurs
Help and restoration if your identity is stolen
Alerting you to potentially nefarious activity

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Region

This website gives a general overview of identity theft protection and restoration coverage. The benefits and prices described are not available in all states or Canadian provinces. IDShield is a product of Pre-Paid Legal Services, Inc. , and provides access to identity theft protection and restoration services. Use of this website and the services is subject to PPLSIs Terms of Service and Privacy Policy. See specific details on terms, coverage, pricing, conditions and limitations in the Personal Plan Details and Family Plan Details sections of this website.

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Dealing With Ssn Identity Theft

The Social Security Administration strongly encourages people to resolve identity theft issues through other avenues before pushing for a change to their SSN. However, in extreme cases, they will issue a new number to someone dealing with persistent hardships or harassment due to their number being exposed.

For most people, locking your credit at the three major bureaus and working with your banks to secure your accounts is the best way to deal with SSN identity theft. Identity theft monitoring services can provide ongoing protection by continuously monitoring the dark web, a major hub for hackers and cybercriminals dealing in personal information. By investing in basic identity theft monitoring, you can be proactive and keep past problems from recurring.

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If someone has enough of your personal information to file a tax return in your name, they also could be opening fraudulent credit accounts with your data. Check your credit score regularly in case theres a sudden, unexplained drop. If this happens, it could be a sign that youre a victim of identity theft.

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How To Report Social Security Identity Theft Using Donotpay

We all know just how strenuous and time-consuming securing your SSN can be or the process of retrieving your SSN from a hacker in case of a breach. Many people also don’t know the necessary steps to report identity theft. But you don’t have to face the problem alone.

DoNotPay provides you with a fast, easy, and successful strategy to secure your social security number and report social security identity theft cases. The DoNotPay app provides you with a clear strategy to prevent social security identity theft and avoid the inconveniences of a stolen SSN.

Follow these steps to deal with social security identity theft using DoNotPay

Search “identity theft” on DoNotPay and select the type of incident you would like to report.

Tell us more about the incident that occurred, including the location, date, time, financial loss, and any suspect information you may have.

We’ll identify whether you should file an FTC report, contact the IRS, freeze your credit report, contact state agencies, or file a police report. Once we guide you through the best options, we’ll automatically submit the reports on your behalf!

As you can see, DoNotPay makes the process easier and ensures that your identity theft issue is sent to the right place and filed properly. You never have to worry about the identity theft reporting process when using the DoNotPay app.

Types Of Medical Identity Theft

Medical identity theft can fall under different categories depending on who uses your information to perpetuate the fraud.

Outsider fraud describes a scenario in which someone else uses your personal and medical information without your knowledge. The fraudster may have stolen your information themselves or bought it from someone who did.
Insider fraud is when someone within the health care system fraudulently uses a patient’s information. For example, a doctor who adds a false diagnosis to your medical record and then bills your insurance provider for the “treatment.”
Friendly fraud is when you knowingly allow someone else, such as a friend or family member, to fraudulently use your information.

While you never want to fall victim to any type of identity theft, medical identity theft can be particularly troublesome. Once someone has your personal and health insurance information, they may be able to:

Get a medical procedure or test in your name.
Use your information to buy prescription drugs and medical equipment.
Make fraudulent insurance claims.

These can lead to the costly and time-consuming task of proving you were the victim of fraud and fixing your financial, credit, health and possibly criminal records. Even friendly fraud, which might not have financial repercussions, could be dangerous.

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When Can I Request A New Social Security Number

You are being harassed, abused, or are in grave danger when using the original number
You can prove that someone has stolen your Social Security number and is using it
More than one person is assigned or using the same number

You must provide evidence that the number is being misused, and that the misuse is causing you significant continuing harm.

The SSA lets you apply for an original Social Security number or a replacement Social Security card for free, but the process can be involved. The application form and additional information about the supporting documents you need to apply are available on the SSA website. There are companies that offer to do the application for you for a fee, but a paid service can’t submit an application for you as you’ll need to take it to an SSA office in person.

To apply for a new Social Security number, you must prove your age, citizenship or lawful immigration status, and your identity. You’ll also need documentation of the misuse or identity theft via an identity theft report from the FTC and/or police report.

Once you have all the documentation and form complete, you visit a SSA office near you.

If you meet certain criteria, you can also request a new Social Security card online via a My Social Security’ account online. To do this online, you must:

Be a U.S. citizen 18 years or older
Not be requesting a name change or any other changes to your Social Security card
Live in one of the states who permit online requests

Contact The Ssa To Block Electronic Access

Beware of tax identity theft and IRS imposters this tax season

Do this by calling the SSA at 1-800-772-1213 , or the Teletypewriter number at 1-800-325-0778.
Once you request a block, nobody can access your Social Security record â not even you. It will be impossible for anybody to view or edit any information on the record until you contact the SSA to remove the block.

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What Are The Most Alarming Signs Of Tax

Time is of the essence in combating tax-related identity theft. Bureaus and government agencies can only help after you file a report, so you must watch for warning signs yourself.

Some red flags indicating tax fraud include:

Unusual IRS Notifications	Look into rejected tax returns, duplicate SSN applications, multiple tax return claims, missing tax refunds, offsets, and recently unsettled dues.
Compromised Online Account	Monitor your online account for unusual login attempts. If you dont have one yet, check your email for notifications saying you suddenly have one.
Misdeclaration of Tax Info	Report any misstatements on your tax returns. Not only will the IRS penalize you for these errors if you dont resolve them, but they also imply someone else has been filing tax returns under your name.
New EIN	The IRS will not assign you an Employer Identification Number unless you request one. If you suddenly receive a new EIN, notify the authorities immediately before the criminal files illicit tax benefits under your name. Note that crooks often use this identity theft tactic on kids with no employment history.

Take this chance to sign up for credit monitoring services. Companies like LifeLock, Aura, and Identity Guard will alert you if they notice any unusual transaction involving your PII. That way, you take action ASAP.

How To Report Social Security Fraud

In addition to reporting any lost Social Security card or stolen Social Security number, if you’re the victim of Social Security fraud or you know of someone committing Social Security fraud, you’ll also want to file a report with The Office of the Inspector General. They investigate all fraud, waste and abuse related to the SSA.

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