What is a Social Security Number (SSN)?
Social Security Number (SSN): A numerical identity given to citizens and other permanent residents of the United States to monitor income and decide benefits is known as an SSN.
As part of the New Deal, the Social Security Number (SSN) was established in 1936 to provide retirement and disability benefits. The SSN was initially intended to be used for benefit and wage tracking. These days, it’s utilized for more things, including monitoring credit reports and identifying people for tax reasons.
To get credit, create bank accounts, get government benefits, make large purchases, and more, people in the United States must present their Social Security number.
How Social Security Numbers Work
Every American citizen, permanent resident, and temporary or working resident has, with very few exceptions, a Social Security number. Due to the use of SSNs by businesses and government organizations, citizens and non-citizens may obtain one.
Section 205(c)(2) of the Social Security Act (42 U.S. Code, Chapter 7, Subsection 405) establishes the legal foundation for Social Security number assignment.
The Social Security Administration (SSA) issues Social Security numbers and cards.
Nowadays, Social Security numbers are just a series of random numbers. Before 2011, however, the numerals had a function. The first three numbers in those years denoted the person’s birthplace or residence. Initially, the following numerals were supposed to represent a person’s birth month or year.
Instead, the Social Security Administration chose to have it reflect a group number because they worried it might be forged.
Although there have been a few instances when two people received the same Social Security number, Social Security numbers have yet to be used twice.
Since there are con artists around, you must protect your data. You may immediately avoid fraud using the Federal Trade Commission website and report it to the appropriate authorities.
The SSN’s Past
As previously said, President Franklin D. Roosevelt created the Social Security number to assist American residents during the Great Depression.
In 1935, President Roosevelt enacted the Social Security Act to aid in bringing economic security to all Americans, particularly those over 65. Financial advantages were part of this, and they would depend on how much money someone made before retiring.
To uphold the Social Security Act and oversee recordkeeping, the Social Security Board was founded. As a result, a distinct nine-digit number was created in 1936 and given to each person.
Elements of the Social Security Number
The area number appears in the first set of three numbers. It served as the state’s representative. States may have several numbers based on the number of individuals requiring SSNs. Area numbers for New Hampshire range from 001 to 003, whereas those for Hawaii range from 575 to 576.
People with the lowest SSNs are often found on the East Coast. As the assignment progressed westward, area numbers increased. Thus, SSNs tend to be greater among West Coast residents.
Since 1972, the area number has been determined by using the zip code linked to the postal address on the application, which isn’t always the place of residence.
The initial procedure for assigning region numbers has had certain exceptions:
Up to 1963, 728–700 were allotted to railroad workers.
586 was allocated to American corporations operating abroad, American Samoa, Guam, the Philippines, and Indochinese refugees (from 1975 to 1979).
The Department of Homeland Security was given the numbers 729–733 for its Enumeration of Entry program, which is intended for non-citizens who have been granted permanent residency in the United States.
666 is not going to be allocated.
Number of Group
The group number is the next set of two numbers. The numbers in the group go from 01 to 99. They weren’t required to be allocated in order. Initially, they stood for the 10,000-number groupings sent to state post offices to assist with assigning SSNs. They arrived under the name of the issuing agency.
Number of Serial
The last four numbers in the third group represent the serial number. From 0001 to 9999 in each group, they went higher. There is no need for serial number 0000.
SSNs were first randomly assigned in 2011.
Throughout time, SSN use has also evolved. For example, federal government entities had to utilize them in 1943 to verify the identity of persons. Other significant dates in the SSN’s chronology include as follows:
- The Internal Revenue Service (IRS) began using SSNs for tax reporting in 1962.
- Beginning in 1970, banks were required to collect Social Security numbers from every client.
- When opening an interest-bearing account in 1983, you had to provide banking institutions with your Social Security number.
- the printing of Social Security numbers (SSNs) on birth and death certificates, driver’s licenses, and other documents in 1996; the removal of SSNs from these records in 1999
- The legislation mandating using Social Security numbers to identify people was repealed in 2008.
- While the SSN issuance pattern stipulated that numbers should be allocated beginning with the most eastern state, the lowest number, 001-01-0001, was assigned in 1936 to a lady living in Concord, New Hampshire, rather than a resident of Maine.
The Need for an SSN
Having a Social Security number is crucial since it directly affects any future benefits you could be eligible for from the U.S. government.
An individual’s annual income and the number of years they have worked are tracked using their SSN. These numbers are necessary to calculate prospective financial advantages, such as retirement income, disability income, or health insurance.
Employers ask for Social Security numbers as part of the application process when individuals first start working. They provide the Internal Revenue Service (IRS) information on salary payments linked to each SSN and the deductions for workers’ Medicare and Social Security contributions. Additionally, employers provide this data to all states that impose income taxes.
- Further Justifications for Having an SSN
- To open a financial account, such as a bank account
- requesting a government loan
- To submit a jobless application
- as a tax return identification
- to get a license to drive
- To get a passport
- When applying for Medicare
How to Obtain a Social Security Number
Filling out Form SS-5: Application for a Social Security Card from the SSA will result in the issue of a Social Security number and card. The form provides instructions on modifying or updating SSN information, getting an original card, and replacing a card.
The form has a comprehensive list of prerequisites, including proof of age, identification, and U.S. citizenship or immigration status.
Getting a card or number is free of charge. A person may alter their Social Security number under certain conditions.
420 million
The total amount of Social Security numbers that may be assigned.
SSNs and Theft of Identity
Social Security numbers are widely used to establish credit and as a means of personal identification. They depend on papers to establish legitimacy and don’t have any biometrics. They may be used for fraud and identity theft.
One prominent instance of this was when the CEO of LifeLock, an identity theft protection firm, used his Social Security number in commercials to highlight the efficacy of his business. Later, his identity was taken more than once.
Legislators have been pushing to keep certain activities—like renting an apartment or getting a hunting or fishing license—apart from using Social Security numbers.
What to Do in the Event of a Stolen SSN
There are actions you should think about doing right away if you lose your card or find out that someone else is using your Social Security number.
Make sure the credit reporting companies—Experian, TransUnion, and Equifax—are aware of the problem by contacting them; also, have a fraud or security alert added to your credit report.
Contact the Social Security Administration of any prospective or fraudulent use of your number. Talk about the replacement procedure if you misplaced your card.
Report an actual theft of your card or usage of your number to the police.
Keep an eye out for any improper usage of already-existing credit accounts or unauthorized account openings on your credit reports.
Is My Social Security Number Being Used by Someone Else? How Can I Find Out?
It is difficult to determine whether your Social Security number has been hacked. A lot of people wait until it’s too late to find out. However, you may stay informed about any odd behavior indicating that someone else is using it in a few different ways. You may check your bank accounts and credit reports, get tax transcripts from the IRS, and have your income confirmed by the Social Security Administration.
How Could Your Social Security Number Be Used by Someone Else?
If not the most significant piece of personal information you will ever have, your SSN is undoubtedly one of the most significant. You must maintain its confidentiality for this reason. Someone may use your SSN to create bank accounts, apply for employment, collect credit and tax returns, acquire medical care, and steal government benefits. It can also be used to impersonate you.
If someone steals your social security number, what should you do?
There are identity thieves everywhere. Contact the agency if you think your Social Security number may be stolen. The organization may assist in resolving issues with revenue. Contact your banking institution and the credit reporting companies (TransUnion, Equifax, and Experian) if you’re experiencing credit issues. To report any questionable behavior, you may also register complaints with the Internal Revenue Service, IdentityTheft.gov, and the Internet Crime Center.
Get a New Social Security Number: How Does It Happen?
To get an SSN, you must complete Form SS-5 and submit it to the Social Security Administration along with two proofs of identification and age and proof of citizenship or immigration status.
What’s the Average Wait Time for a Social Security Number?
As soon as it has all the required paperwork and information, the Social Security Administration sends social security cards to people. This may take up to four weeks, particularly if the administration is delayed.
The Final Word
A social security number, sometimes known as an SSN, is a unique identification number linked to citizens and other nationals of the United States. It was founded in 1936, while the Social Security Administration was set up (1935) to provide us benefits for disability and retirement.
These days, the purpose of requiring an SSN is not limited to determining our entitlements to benefits from our lifetime payments to Social Security and Medicare.
Obtaining a driver’s license, applying for loans, opening bank accounts, and applying for unemployment benefits are all prerequisites.
Your social security number is the key to significant rewards down the road. Thus, you must safeguard both it and the card it’s on. Ensure you only use it when necessary (and not just because someone asks).
Conclusion
- Social Security numbers are numerical identifiers given to residents and citizens of the United States to track income and determine benefits.
- The New Deal included the creation of the SSN in 1936.
- The Social Security Administration issues SSNs.
- You must submit Form SS-5 to the Social Security Administration to get a Social Security number.
- SSNs are vulnerable to unauthorized use by fraudsters and identity thieves.
