The Developing Threat of Social Security Fraud

Despite the fact that the government is taking measures to stop identity theft, the arrest rate is low when it comes to this type of crime. Under certain laws like the FACTA and HIPAA, companies are fined for letting identity information slip into criminal hands. The biggest concern for United States citizens is social security number identity theft.

·         A major factor right now is illegal immigration into the United States to find employment. Social security number id theft is rampant among illegal immigrants of all backgrounds because it is an easy way to find quick work.

·         The odds of getting caught are low, just 1 out of every 20 reported cases.

·         The conviction rate is even lower at 1 out of every 50 arrested. Therefore it is considered a high reward, low risk crime.

The social security problem

The laws and punishments for social security id theft are astonishingly lax. In the United States you must give your employer a social security number for tax purposes. There are laws that require companies to check this information, but you can still work while the company waits for a verification even if you are using a fraudulent social security number. Between 2005 and 2008 the Identity Theft and Assumption Deterrence Act curbed the use of stolen social security numbers among illegal immigrants, but this changed in 2009. The Supreme Court ruled that it's not a crime if an illegal immigrant didn't know the social security number they were using belonged to a U.S. citizen. Now social security fraud is back and more dangerous than ever.

Your information is not protected by those that track it

The agencies involved in tracking your information aren't necessarily protecting it. When you look at the problem from a different perspective you will come to understand the dynamics of the problem. The Social Security Administration collects money from all workers, including identity thieves. If a name doesn't match the number they have on file, the money goes to a suspended earnings file. However, the SSA only pays benefits to one individual associated with the number, so there is little incentive for them to tell anyone their number has been stolen. It's actually against code in the IRS for the SSA to notify you that your number is being used by someone else!

Explore More to Know About Social Security Identity Theft Protection.

The credit bureaus

Companies that check your credit report will know this too, but they too are not allowed to tell you. The three major credit bureaus sell a special report which shows any activity under a social security number. If another name is associated with a certain number than two different files are created to track the credit. So companies that want to give you credit can pull out this report, see suspicious activity, but are not allowed to tell you. You might think your credit history is very good, but can be turned down for a loan because someone else is using your number recklessly.

You can find outstanding tips for protecting your social security number by visiting www.legal-yogi.com. They have a database of legal agencies ready to help throughout the country. Call them directly at 1-800-397-1397.