ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

Subcommittee on Social Security

Shaw Announces Hearing on Social Security
Protecting the Privacy of Social Security Numbers and Preventing Identity Theft

Congressman E. Clay Shaw, Jr. (R-FL), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold a field hearing on protecting the privacy of Social Security numbers (SSNs) and preventing identity theft.  The hearing will take place on Monday, April 29, 2002, in the Commission Chambers, Lake Worth City Hall, 7 North Dixie Highway, Lake Worth, Florida, beginning at 1:00 p.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only.  However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Subcommittee and for inclusion in the printed record of the hearing.

BACKGROUND:

The SSN was created in 1936 for the sole purpose of tracking workers’ Social Security earnings records.  Today, SSN use has expanded well beyond its original purpose.  According to the Social Security Administration (SSA), the SSN is the single-most widely used record identifier in the public and private sectors.  Federal law requires the use of SSNs for administration of income taxes, the Food Stamp, Medicaid, and other Federal programs.  In the private sector, SSNs are commonly used for record-keeping and data exchange systems, and often businesses require individuals to disclose their SSN as a condition for doing business.

Many believe widespread use of the SSN benefits the public by improving access to financial and credit services in a timely manner, reducing administrative costs, and improving record keeping so consumers can be contacted and identified accurately.  Others argue the pervasive use of SSNs makes them a primary target for fraud and misuse.  Most recently, the events of September 11 have shed new light on the severe consequences of failure to protect the integrity of SSNs, as the ensuing investigations have exposed the methods used by the terrorists who assumed false identities to carry out their activities.

In addition to being a gateway to terrorist acts, identity theft causes misery and frustration in the daily lives of tens of thousands of Americans.  Identity theft is the number one consumer complaint received by the Federal Trade Commission, amounting to 42 percent of complaints received in 2001.  In a recent report, the U. S. General Accounting Office found that identity theft appears to be growing (Identity Theft - Prevalence and Cost Appear to Be Growing: GAO‑02-363).  Report findings include: (1) the SSA Office of Inspector General has reported a substantial increase in call-ins of identity theft-related allegations to its Fraud Hotline, where allegations involving SSN misuse (81 percent of which relate directly to identity theft) have increased more than fivefold (11,000 to 65,000) in the 4 years ending September 2001; (2) seven-year fraud alerts (warnings to credit grantors to conduct additional identity verification before granting credit) have increased substantially (36 percent and 53 percent respectively) in the last 3 years, according to two consumer reporting agencies; and, (3) in its 2000 annual report, the Postal Service indicated that investigations of identity theft crime increased by 67 percent since the previous year.

To increase the privacy of SSNs and better protect the American public from being victimized, Chairman Shaw, along with several Members of the Committee on Ways and Means, introduced bipartisan legislation, H.R. 2036, the “Social Security Number Privacy and Identity Theft Prevention Act of 2001.”  This legislation prohibits the sale and display of SSNs by Federal, State, and local governments, prohibits the sale of SSNs by the private sector, deters businesses from denying services when someone refuses to provide the SSN, and increases fines and penalties for SSN misuse.

In announcing the hearing, Chairman Shaw stated: “Although never created to be a personal identifier, the use of SSNs is now pervasive throughout our automated society.  As highlighted by the September 11 attacks, these numbers are far too easily used by criminals or terrorists to steal identities and obtain false documents.  The ravages of SSN misuse are experienced by each and every victim of identity theft and now by our Nation through their role in facilitating terror.  We must act to take whatever steps we can to protect the privacy of each and every Americans’ SSNs.  It’s the right thing to do and a necessary step in our Nation’s response to terrorism.”

FOCUS OF THE HEARING:

The hearing will focus on what victims experience when their identities are stolen, the challenges law enforcement faces as they pursue identity thieves, the use of SSNs by government agencies at the Federal, State, and local levels, practices used to safeguard privacy, and the impact of legislative proposals aimed at combating SSN misuse and protecting privacy.

DETAILS FOR SUBMISSIONS OF WRITTEN COMMENTS:

Please Note:  Due to the change in House mail policy, any person or organization wishing to submit a written statement for the printed record of the hearing should send it electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, by the close of business, Monday, May 13, 2002.  Those filing written statements who wish to have their statements distributed to the press and interested public at the hearing should deliver 200 copies to the West Palm Beach District Office of Congressman E. Clay Shaw, Jr., 222 Lakeview Avenue, Suite 162, West Palm Beach, Florida 33401, by the close of business, Friday, April 26, 2002.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. Due to the change in House mail policy, all statements and any accompanying exhibits for printing must be submitted electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, in Word Perfect or MS Word format and MUST NOT exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. Any statements must include a list of all clients, persons, or organizations on whose behalf the witness appears. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers of each witness.

Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call (202) 225-1721 or (202) 226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.