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Social Security numbers, initially created by the U.S. government to manage retirement and disability benefits, have evolved into universal identifiers for citizens, international students, and authorized workers within the nation. This sensitive piece of data is now essential for various everyday transactions.
In today’s landscape, obtaining a credit card, purchasing property, or even receiving your salary necessitates providing your Social Security number (SSN). This critical identifier, despite its importance, has become increasingly susceptible to exposure in data breaches. A recent cyberattack against National Public Data, a background check firm, reportedly compromised the personal data of 2.9 billion individuals, potentially including Social Security numbers for nearly every person in the United States, as reported by the Los Angeles Times.
The widespread use of Social Security numbers as a primary authentication method by cell phone providers, utility companies, and retailers, due to their near-universal possession by U.S. citizens and permanent residents, makes them a prime target for identity theft. As tax season approaches, the IRS advises taxpayers to carefully vet their tax preparers to safeguard their sensitive information.
When should you disclose your Social Security number, and when should you refrain? We consulted experts to provide guidance.
For further reading, explore how to order a new Social Security card and access our 2025 tax guidance.
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When Is Sharing Your Social Security Number Acceptable?
While protecting your Social Security number is paramount, legitimate situations do necessitate sharing these nine digits.
“Any institution you approach for a loan or credit line will require your number,” stated Paige Hanson, cyber safety education chief at NortonLifeLock, in an interview.
This encompasses banks and credit bureaus, Hanson explained, and may also include cell phone providers, as mobile contracts function similarly to credit lines.
Furthermore, providing your Social Security number becomes obligatory for any activity triggering tax reporting. This includes employers reporting employee earnings to the IRS, according to Alan Butler, executive director of the Electronic Privacy Information Center, a nonprofit organization focused on defending privacy and identity rights.
Disclosure is also necessary when engaging an investment advisor or conducting substantial cash transactions exceeding $10,000, such as purchasing real estate or vehicles.
Governmental bodies administering benefits, including the U.S. Department of Labor and state Medicaid agencies, may also request your number. Such requests should include a disclosure form clarifying if providing the number is mandatory or voluntary, verifying the agency’s right to request it, and outlining its intended use.
When Should You Avoid Sharing Your Social Security Number?
Instances where you should withhold your Social Security number are far more numerous. Given the rise of phishing scams, never transmit your information via email or telephone.
“Unless you initiated the communication, never divulge your personal information,” Hanson of NortonLifeLock cautioned. “Even if the communication appears to originate from a reputable company you regularly interact with.”
Sharing the last four digits of your Social Security number poses a reduced risk, Hanson suggested, as it’s data already in the company’s possession.
Not all requests for your number stem from malicious intent: “Some businesses simply request your code as a quicker method to access your account,” Hanson elaborated.
However, this convenience does not justify granting them access.
Others might request it when formalizing agreements, such as gym memberships. “It simplifies debt collection processes, should they become necessary,” Hanson noted. “However, alternative methods exist.”
While employers can request your Social Security number, “it absolutely cannot be a pre-requisite for employment consideration,” Hanson emphasized. Therefore, it should not be included on job applications.
If an employer insists and you remain uncomfortable disclosing this personal data, it is acceptable to decline. “Each additional entity storing your Social Security number represents another potential point of vulnerability for identity theft,” Butler clarified.
Strategies to Safeguard Your Social Security Number
If a company requests your Social Security number, inquire about alternative forms of identification.
By adulthood, your Social Security number has been entered into numerous databases, making absolute security unattainable. However, consumers can adopt measures to enhance protection of their account numbers.
Avoid carrying your Social Security card in your wallet or purse. Store it securely at home. Shred any documents or mail containing your number instead of discarding them directly. Furthermore, always inquire about the necessity when asked for your SSN.
“You are entitled to ask, ‘Why is this needed? How will it be stored?'” Hanson advised. “‘Are there alternative identifiers I can use instead?'”
Hanson recounted an instance where a doctor’s office form requested both her and her daughter’s SSNs.
“There was no legitimate need,” Hanson stated. “Consequently, I left those fields blank, and it was not questioned.”
Another effective measure to protect your Social Security number is by implementing a “freeze” on your credit reports with Transunion, Equifax, and Experian.
This action will automatically decline any credit report requests initiated by someone attempting to fraudulently open credit cards or obtain loans using your number. You can maintain the freeze indefinitely or specify a “thaw” date.
Regularly scrutinize your credit reports for any suspicious activity – free copies from all three agencies are available annually at AnnualCreditReport.com – and establish an account on the Social Security Administration website to monitor for unauthorized access to benefits using your number.
Responding to Social Security Number Compromise
If you suspect you’ve become a victim of identity theft involving your Social Security number, report the incident to the Federal Trade Commission, your local law enforcement, and any businesses potentially provided your number fraudulently.
If you believe your number has been misused for unauthorized employment or tax return access, contact the Social Security Administration at 800-772-1213 or visit the IRS’s dedicated identity theft website.
While obtaining a new Social Security number is possible, it might not fully resolve all associated issues, according to the FTC.
“Acquiring a new number can sometimes create further complications,” Steve Toporoff from the FTC’s Division of Privacy and Identity Protection explained in a statement, “because it necessitates updating all government agencies, financial institutions, credit bureaus, health insurers, and other entities where the prior Social Security number might be on file.”