What Can Scammers Do With Your Social Security Number?

A Social Security Number (SSN) is a unique identifier issued by the Social Security Administration (SSA). Created in 1936, its initial purpose was to track earnings for Social Security benefits. Over time, the SSN’s role expanded, becoming a universal identifier for many purposes.

Today, individuals use their SSN to open financial accounts, apply for loans, secure employment, and interact with government agencies. This widespread use makes the SSN sensitive personal information. Its compromise can lead to serious issues, as scammers can exploit it to impersonate individuals and cause financial and personal distress.

Unauthorized Financial Account Exploitation

Scammers frequently use a stolen Social Security Number (SSN) to exploit private sector accounts. This can lead to immediate and long-lasting financial damage. The SSN is often key for identity verification in credit and financial applications.

One common tactic involves opening new lines of credit in the victim’s name. This includes applying for credit cards, personal loans, or even larger financial products such as mortgages and car loans. When a scammer applies for credit, they typically provide the stolen SSN along with other falsified personal information. Financial institutions use the SSN to pull the victim’s credit report, which helps them assess creditworthiness. Once approved, the scammer can make purchases or withdraw funds, leaving the victim responsible for the accumulated debt.

SSNs are also misused to establish utility accounts, including electricity, gas, water, and internet services. Scammers might open these accounts to gain access to services without payment or to establish a false address for further fraudulent activities. Similarly, they can apply for and obtain cell phone contracts, acquiring expensive devices and services that are then billed to the unsuspecting victim. These actions can quickly lead to substantial unpaid balances and collection efforts directed at the legitimate individual.

The immediate consequences include rapid debt accumulation, ranging from hundreds to tens of thousands of dollars. Fraudulent activity damages credit scores, as missed payments, new accounts, and high credit utilization are reported. A damaged credit score can impede the victim’s ability to obtain legitimate loans, rent housing, or secure employment.

Impersonation for Government Benefits and Services

An SSN is important for accessing government programs and public services, making it a target for scammers. Misuse can lead to complications for the legitimate individual, including delays in receiving benefits or unexpected financial liabilities.

One prevalent form of misuse is tax fraud, where scammers use a stolen SSN to file false tax returns. They submit a fraudulent tax return, often claiming a substantial refund, before the legitimate taxpayer has filed their own return. The Internal Revenue Service (IRS) processes the fraudulent claim, and the refund is typically directed to an account controlled by the scammer. When the actual taxpayer attempts to file their return, they discover a return has already been processed under their SSN, leading to delays in receiving their legitimate refund and requiring them to prove their identity to the IRS.

Scammers also use stolen SSNs to apply for and receive various government benefits. This can include unemployment benefits. By using a victim’s SSN and other personal details, fraudsters can claim unemployment payments, which are then disbursed to them. The victim may only become aware of this fraud when they receive an unexpected tax form, such as a Form 1099-G, reporting unemployment income they never received, creating tax complications.

A stolen SSN can also be used to fraudulently claim Social Security benefits or access healthcare services. Scammers might attempt to divert legitimate Social Security payments or apply for benefits in the victim’s name. Medical identity theft occurs when an individual uses another person’s SSN or health insurance information to receive medical care, prescription drugs, or other health-related services. This can result in inaccurate medical records for the victim, potential billing errors, and even the exhaustion of health insurance benefits.

Misuse in Other Areas

Beyond direct financial and government benefit exploitation, a stolen Social Security Number (SSN) can be misused in other ways, creating challenges for victims. These forms of misuse often have indirect but serious consequences, impacting employment, legal standing, and personal reputation.

Employment fraud is an area where SSNs are exploited. Scammers may use a stolen SSN to gain employment, working under the victim’s identity. This can lead to unexpected tax implications for the victim, as income earned by the imposter is reported under the victim’s SSN. The victim might receive a Form W-2 for wages they did not earn, requiring them to resolve discrepancies with the IRS and their actual employer.

Criminal impersonation is another misuse. If a scammer is arrested, they might provide a stolen SSN to law enforcement during booking to avoid accountability or to conceal their true identity. This action can result in the victim’s SSN becoming associated with a criminal record, including arrests, charges, or convictions that are not their own. Clearing one’s name from such a record can be a difficult legal process, potentially affecting background checks for employment, housing, or professional licenses.

SSNs are also commonly requested for housing applications and background checks for various purposes. A scammer could use a stolen SSN to pass a background check to rent an apartment or secure other housing, potentially leaving the victim liable for unpaid rent or damages. Misuse in pre-employment background checks could prevent a victim from securing legitimate employment or falsely associate them with an imposter’s work history. These areas highlight the extent of SSN misuse and its implications beyond immediate financial loss.