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77–410 2002

SOCIAL SECURITY ADMINISTRATION’S RESPONSE

TO THE SEPTEMBER 11 TERRORIST ATTACKS

HEARING

BEFORE THE

SUBCOMMITTEE ON SOCIAL SECURITY

OF THE

COMMITTEE ON WAYS AND MEANS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED SEVENTH CONGRESS

FIRST SESSION

NOVEMBER 1, 2001

Serial No. 107–50

Printed for the use of the Committee on Ways and Means

(


E:\HR\OC\D410A.XXX
ii

COMMITTEE ON WAYS AND MEANS

BILL THOMAS, California, Chairman

PHILIP M. CRANE, Illinois 

E. CLAY SHAW, JR., Florida 

NANCY L. JOHNSON, Connecticut 

AMO HOUGHTON, New York 

WALLY HERGER, California 

JIM MCCRERY, Louisiana 

DAVE CAMP, Michigan 

JIM RAMSTAD, Minnesota 

JIM NUSSLE, Iowa 

SAM JOHNSON, Texas 

JENNIFER DUNN, Washington 

MAC COLLINS, Georgia 

ROB PORTMAN, Ohio 

PHIL ENGLISH, Pennsylvania 

WES WATKINS, Oklahoma 

J.D. HAYWORTH, Arizona 

JERRY WELLER, Illinois 

KENNY C. HULSHOF, Missouri 

SCOTT MCINNIS, Colorado 

RON LEWIS, Kentucky 

MARK FOLEY, Florida 

KEVIN BRADY, Texas 

PAUL RYAN, Wisconsin 

CHARLES B. RANGEL, New York 

FORTNEY PETE STARK, California 

ROBERT T. MATSUI, California 

WILLIAM J. COYNE, Pennsylvania 

SANDER M. LEVIN, Michigan 

BENJAMIN L. CARDIN, Maryland 

JIM MCDERMOTT, Washington 

GERALD D. KLECZKA, Wisconsin 

JOHN LEWIS, Georgia 

RICHARD E. NEAL, Massachusetts 

MICHAEL R. MCNULTY, New York 

WILLIAM J. JEFFERSON, Louisiana 

JOHN S. TANNER, Tennessee 

XAVIER BECERRA, California 

KAREN L. THURMAN, Florida 

LLOYD DOGGETT, Texas 

EARL POMEROY, North Dakota 

ALLISON GILES, Chief of Staff

JANICE MAYS, Minority Chief Counsel

SUBCOMMITTEE ON SOCIAL SECURITY

E. CLAY SHAW, Florida, Chairman

SAM JOHNSON, Texas 

MAC COLLINS, Georgia 

J.D. HAYWORTH, Arizona 

KENNY C. HULSHOF, Missouri 

RON LEWIS, Kentucky 

KEVIN BRADY, Texas 

PAUL RYAN, Wisconsin 

ROBERT T. MATSUI, California 

LLOYD DOGGETT, Texas 

BENJAMIN L. CARDIN, Maryland 

EARL POMEROY, North Dakota 

XAVIER BECERRA, California

Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public hearing records 

of the Committee on Ways and Means are also published in electronic form. The printed 

hearing record remains the official version. Because electronic submissions are used to 

prepare both printed and electronic versions of the hearing record, the process of converting 

between various electronic formats may introduce unintentional errors or omissions. Such occurrences are inherent in the current publication process and should diminish as the process 

is further refined. 


E:\HR\OC\D410A.XXX
iii

C O N T E N T S 

Page 

Advisories announcing the hearing ........................................................................ 2

WITNESSES 

Social Security Administration, Larry G. Massanari, Acting Commissioner, 

accompanied by Beatrice M. Disman, New York Regional Commissioner, 

and Laurie Watkins, Acting Philadelphia Regional Commissioner ................. 18

Social Security Administration, Office of the Inspector General, Hon. James 

G. Huse, Jr., Inspector General .......................................................................... 46

Kelly, Hon. Sue W., a Representative in Congress from the State of New 

York ....................................................................................................................... 8

STATEMENT FOR THE RECORD 

ERISA Industry Committee (ERIC), Mark J. Ugoretz, and Janice M. Gregory, 

letter ...................................................................................................................... 66


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E:\HR\OC\D410A.XXX
(1)

SOCIAL SECURITY ADMINISTRATION’S RESPONSE TO THE SEPTEMBER 11 TERRORIST 

ATTACKS 

THURSDAY, NOVEMBER 1, 2001

HOUSE OF REPRESENTATIVES, COMMITTEE ON WAYS AND MEANS, SUBCOMMITTEE ON SOCIAL SECURITY, Washington, DC. 

The Subcommittee met, pursuant to notice, at 10:00 a.m., in 

room 2200 Rayburn House Office Building, Hon. E. Clay Shaw, Jr., 

(Chairman of the Subcommittee) presiding. 

[The advisory and the revised, revised #2, and revised #3 

advisories follow:]


E:\HR\OC\D410A.XXX
2

ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS

SUBCOMMITTEE ON SOCIAL SECURITY

FOR IMMEDIATE RELEASE CONTACT: (202) 225–9263

October 11, 2001

No. SS–9

Shaw Announces Hearing on the

Social Security Administration’s Response

to the September 11 Terrorist Attacks

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 hearing on the Social Security Administration’s response to the September 11 terrorist attacks. The hearing will take place on Thursday, October 

18, 2001, in room B–318 Rayburn House Office Building, beginning at 10:00 a.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:

Social Security survivor and disability benefits are available for the families of 

those who lost their lives and to those who suffered severe injuries as a result of 

the terrorist attacks at the World Trade Center, the Pentagon, and in Pennsylvania 

on September 11, 2001. The Social Security Administration (SSA) established special emergency handling procedures for all claims in response to these incidents. 

The number of related claims continues to grow with over 3,150 claims received 

through October 1. The SSA personnel continue to staff family assistance centers 

at the site of the Pentagon attack and in both Manhattan and New Jersey. In order 

to facilitate claims-taking, and to educate victims and their families about Social Security’s benefits, SSA is continuing its outreach efforts to area hospitals and employ- ers.

Along with helping victims and their families, SSA has faced certain operational 

impacts in the greater Manhattan area. Most affected offices have resumed operations, and those disability hearings which were postponed are being rescheduled. 

The New York Disability Determination Service Director is awaiting permission to 

recover an estimated 15,000 case folders from their office located a quarter-block 

from the World Trade Center.

Beyond responsive service delivery, ensuring the integrity of Social Security’s programs can play a role in the prevention of any future terrorism. Identification documents are critically important to terrorists, and the key to such documents is the 

Social Security number (SSN). The integrity of the SSN application process must 

be ensured to the maximum degree possible because of the fundamental role it can 

play in helping unscrupulous individuals steal identities and obtain false identification documents. In addition, SSA’s Office of the Inspector General must have the 

support it needs to effectively investigate fraud and SSN misuse, quickly and accurately identify suspects—including those who may be suspected of terrorism, and 

share needed information with other law enforcement.

In announcing the hearing, Chairman Shaw stated: ‘‘SSA employees are to be 

commended for their responsiveness to the victims of the terrorist attacks of September 11 and for their ongoing assistance in the resulting Federal investigations 

of these heinous crimes. We must focus now on what we can do to protect the integrity of the Social Security programs and deter future incidents. Early reports that 


E:\HR\OC\D410A.XXX
3

the hijackers have stolen others’ identities to evade and frustrate law enforcement 

officials highlight our challenge to prevent identity theft, that often centers around 

the stealing of SSNs. The bipartisan ’Social Security Number Privacy and Identity 

Theft Prevention Act’ (H.R. 2036), introduced earlier this year, restricts the sale and 

public display (including internet) of SSNs by both the public and private sector and 

enforces such restrictions through civil and criminal penalties. Through this hearing, we will hear whether we need to do more.’’

FOCUS OF THE HEARING:

During the hearing, witnesses will provide information on how the SSA has 

served the victims and families of the terrorist acts, how operations have been impacted, and how the agency has supported resulting Federal investigations. In addition, witnesses will discuss the degree to which changes may be needed within the 

agency and the law to ensure the integrity of Social Security programs.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Any person or organization wishing to submit a written statement for the printed 

record of the hearing should submit six (6) single-spaced copies of their statement, 

along with an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, 

with their name, address, and hearing date noted on a label, by the close of

business, Thursday, November 1, 2001, to Allison Giles, Chief of Staff, Committee 

on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office 

Building, Washington, D.C. 20515. If those filing written statements wish to have 

their statements distributed to the press and interested public at the hearing, they 

may deliver 200 additional copies for this purpose to the Subcommittee on Social 

Security office, room B–316 Rayburn House Office Building, by close of business the 

day before the hearing.

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. All statements and any accompanying exhibits for printing must be submitted on an IBM 

compatible 3.5-inch diskette in WordPerfect or MS Word format, typed in single space and may 

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. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments 

by the Committee, must include on his statement or submission a list of all clients, persons, 

or organizations on whose behalf the witness appears.

4. A supplemental sheet must accompany each statement listing the name, company, address, 

telephone and fax numbers where the witness or the designated representative may be reached. 

This supplemental sheet will not be included in the printed record.

The above restrictions and limitations apply only to material being submitted for printing. 

Statements and exhibits or supplementary material submitted solely for distribution to the 

Members, the press, and the public during the course of a public hearing may be submitted in 

other forms.

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.


E:\HR\OC\D410A.XXX
4

* * * NOTICE—HEARING POSTPONEMENT * * *

ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS

SUBCOMMITTEE ON SOCIAL SECURITY

FOR IMMEDIATE RELEASE CONTACT: (202) 225–9263

October 11, 2001

No. SS–9-Revised

Postponement of Subcommittee Hearing on

the Social Security Administration’s Response to

the September 11 Terrorist Attacks

Thursday, October 18, 2001

Congressman E. Clay Shaw, Jr., (R–FL), Chairman of the Subcommittee on Social 

Security of the Committee on Ways and Means, today announced the Subcommittee 

hearing on the Social Security Administration’s response to the September 11 terrorist attacks, previously scheduled for Thursday, October 18, 2001, at 10:00 a.m., 

in room B–318 Rayburn House Office Building, has been postponed and will be 

rescheduled at a later date

* * * NOTICE—

.

HEARING RESCHEDULED * * *

f ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS

SUBCOMMITTEE ON SOCIAL SECURITY

FOR IMMEDIATE RELEASE CONTACT: (202) 225–9263

October 25, 2001

No. SS–9-Revised #2

Rescheduled Hearing of the

Subcommittee on Social Security on the

Social Security Administration’s Response

to the September 11 Terrorist Attacks

Thursday, November 1, 2001

Congressman E. Clay Shaw, Jr., Chairman of the Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee 

hearing on the Social Security Administration’s response to the September 11 terrorist attacks previously scheduled for Thursday, October 18, 2001, will now be 

held on Thursday, November 1, 2001, at 10:00 a.m., in room B–318 Rayburn 

House Office Building.


E:\HR\OC\D410A.XXX
5

DETAILS FOR SUBMISSION 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 

contact the Subcommittee on Social Security at (202) 225–9263 by the close of business, Thursday, November 15, 2001. Those filing written statements who wish to 

have their statements distributed to the press and interested public at the hearing 

should contact the Subcommittee on Social Security at (202) 225–9263 by close of 

business the day before the hearing. 

All other details for the hearing remain the same. (See Subcommittee Advisory 

No. SS–9, dated October 11, 2001.)

* * * NOTICE—

fCHANGE IN LOCATION * * *

ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS

SUBCOMMITTEE ON SOCIAL SECURITY

FOR IMMEDIATE RELEASE CONTACT: (202) 225–9263

October 31, 2001

No. SS–9-Revised #3

Change in Location

for Subcommittee Hearing on the

Social Security Administration’s Response

to the September 11 Terrorist Attacks

Congressman E. Clay Shaw, Jr., (R–FL), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee 

hearing on the Social Security Administration’s response to the September 11 terrorist attacks, previously scheduled for Thursday, November 1, 2001, at 10:00 a.m., 

in room B–318 Rayburn House Office Building, will now be held in room 2200 

Rayburn House Office Building.

All other details for the hearing remain the same. (See Subcommittee Advisory 

No. SS–9, dated October 11, 2001, and No. SS–9-Revised #2, dated October 25, 

2001.)

fairs Committee for allowing us to use their room. I think it is 

Chairman SHAW. Good morning. I want to thank the Foreign Aff quite appropriate because of the subject of the hearing that we 

have this morning. 

Today we focus on the Social Security Administration’s (SSA’s) 

response to the tragic events of September 11. As we mourn the 

loss of so many Americans, the best of our great Nation have 

stepped forward to assist those injured and the families of those 

who were lost. Many of the victims were eligible for Social Security 


E:\HR\OC\D410A.XXX
6

survivor or disability benefits, and employees of the Social Security 

Administration responded with urgency, dedication, and with great 

compassion. 

Today the Acting Commissioner of Social Security will detail the 

Administration’s diligent efforts to respond to the victims of those 

heinous attacks. And also this morning the Inspector General (IG), 

Jim Huse, will discuss how the theft of Social Security numbers 

may have helped harbor terrorists in our own country. 

Countless hours of investigations by IG agents have provided key 

identifying information on these terrorists and their networks. Law 

enforcement officers, local police, Federal Bureau of Investigations 

(FBI), Secret Service, and Social Security Administration Office of 

Inspector General have worked in concert since the attack to identify the terrorists, their enabling thugs, and others who are suspect. 

The events of September 11 have changed all of us, perhaps forever. Yet our resolve to respond is unyielding, and we learn today 

more about the terrorists’ methods. Investigations have found that 

some of the terrorists assumed identities using Social Security 

numbers (SSNs) to execute their plans and to frustrate law enforcement efforts. 

The activities of the terrorists highlight the need for us to be 

vigilant in ensuring the integrity of the Social Security number application process, protecting the privacy of Social Security numbers, 

and preventing identity theft. 

This year, I, along with several of my Committee colleagues, introduced H.R. 2036, the Social Security Number Privacy and Identity Theft Prevention Act of 2001. This bipartisan bill represents a 

balanced approach to protecting the privacy of Social Security numbers while allowing for their legitimate use. It restricts the sale 

and public display of Social Security numbers by both the public 

and private sector and enforces such restrictions through civil and 

criminal penalties. Passage of this legislation would be a step in 

the right direction. Today we will learn whether there is more that 

we can do. 

Social Security is called upon after a crisis to assist victims, and 

this role is paramount. I count the employees of the Social Security 

Administration and the Office of Inspector General among our Nation’s best, and we thank them for their ability to serve the public 

good no matter how difficult. 

But now we must look to the future. Having a secure system is 

critical to preventing future attacks. Social Security numbers have 

become the most frequently used personal identifier and are far too 

easily used by criminals or terrorists to steal identities and obtain 

false documents. We must act to protect the privacy of Americans’

Social Security numbers. It is a necessary step in our Nation’s response to terrorism. 

I note in yesterday’s Washington Times, in Charlotte, North 

Carolina, a man was charged with attempting to obtain a credit 

card under the name of a victim killed in the September 11 attack 

on the World Trade Center. This I think is a new low. This is incredible, and certainly this alone should spur us along to move 

ahead with this legislation. 

I now yield to Mr. Matsui. 


E:\HR\OC\D410A.XXX
7

[The opening statement of Chairman Shaw follows:]

Opening Statement of the Hon. E. Clay Shaw, Jr., a Representative in Congress from the State of Florida, and Chairman, Subcommittee on Social 

Security 

Today we focus on the Social Security Administration’s response to the tragic 

events of September 11th. 

As we mourn the loss of so many Americans, the best of our great nation have 

stepped forward to assist those injured and the families of those who were lost. 

Many of the victims were eligible for Social Security survivor or disability benefits, 

and employees of the Social Security Administration responded with urgency, dedication, and compassion. 

Today, the Acting Commissioner of Social Security will detail the Administration’s diligent efforts to respond to the victims of these heinous attacks. And also this 

morning, Inspector General Jim Huse will discuss how the theft of Social Security 

numbers may have helped harbor terrorists in our own country. 

Countless hours of investigation by IG agents have provided key identifying information on these terrorists and their networks. Law enforcement officers—local police, FBI, Secret Service, and the Social Security Administration’s Office of Inspector 

General—have worked in concert since the attacks to identify the terrorists, their 

enabling thugs, and others who are suspect. 

The events of September 11 have changed all of us, forever. Yet, our resolve to 

respond is unyielding. As we learn more about the terrorists’ methods, investigators 

have found that some of the terrorists assumed identities, using Social Security 

numbers to execute their plans and to frustrate law enforcement efforts. The activities of the terrorists highlight the need for us to be vigilant in ensuring the integrity 

of the Social Security number application process, protecting the privacy of Social 

Security numbers, and preventing identity theft. 

This year, I, along with several of my Committee colleagues, introduced H.R. 

2036, the ‘‘Social Security Number Privacy and Identity Theft Prevention Act of 

2001.’’ This bipartisan bill represents a balanced approach to protecting the privacy 

of Social Security numbers while allowing for their legitimate uses. 

It restricts the sale and public display of Social Security numbers by both the public and private sector and enforces such restrictions through civil and criminal penalties. Passage of this legislation would be a step in the right direction. Today we 

will learn whether there is more we can do. 

Social Security is called upon after a crisis to assist victims, and this role is paramount. I count the employees of the Social Security Administration and the Office 

of Inspector General among our nation’s best, and we thank them for their ability 

to serve the public good, no matter how difficult. 

But, now we must look to the future. Having a secure system is critical to preventing future attacks. 

Social Security numbers have become the most frequently used personal identifier, and are far too easily used by criminals or terrorists to steal identities and obtain false documents. We must act to protect the privacy of Americans’ Social Security numbers. It is a necessary step in our nation

f’s response to terrorism.

Mr. MATSUI. Thank you very much, Mr. Chairman. I want to 

first of all thank you for calling this hearing. I think it is very 

timely and obviously very important, and I also want to thank you 

very much for your bipartisan approach on the whole issue of the 

identity of Social Security numbers, and how to protect the privacy 

of those that have these numbers I think is extremely important. 

And we appreciate the fact that you and your staff have outreached 

to our staff on this particular issue. I appreciate it very, very much. 

I would like to first of all thank Acting Commissioner Larry 

Massanari and his staff, obviously the Inspector General’s Office, 

and all of the employees of the Social Security Administration. 

I would like to also just mention two witnesses who will be testifying this morning who have done really an outstanding job. One 

is Bea Disman from New York, and Laurie Watkins of the PhilaVerDate Jan 17 2002 05:44 Feb 20, 2002 Jkt 077410 PO 00000 Frm 00011 Fmt 6633 Sfmt 6602 E:\HR\OC\D410A.XXX pfrm03 PsN: D410A

E:\HR\OC\D410A.XXX
8

delphia Region, both of whom, obviously, because of the deaths that 

occurred as a result of September 11 in both Pennsylvania and 

New York, have done really an outstanding job with their staff. 

And we just want to thank them very much as a result of that. 

This was an unprecedented situation. All of us at this dais and 

in the audience will remember this just as we recall Pearl Harbor, 

John Kennedy’s assassination, and FDR’s death. This September 

11 date will be a historic date, and all of you have really come 

through and made sure that those victims and the families of victims have been helped greatly by this very difficult situation. And 

over 4,000 people now are about to receive or have received either 

survivor’s benefits or disability benefits, and that couldn’t have 

happened without the dedication of our Federal work force. And all 

of you really epitomize what this country is really all about and the 

greatness of this country. 

I would also just like to, if I may, make one other observation. 

I think it is important to note that because of the Social Security 

system, a family with two minor children will receive over the lifetime of that family over $400,000 in Social Security benefits. Now, 

that will not take care of the loss of life that occurred. It will not, 

obviously, take care of the loss of comfort. On the other hand, it 

will give that family at least some opportunity to get back on its 

feet and perhaps get on with their lives in the best possible way. 

For a disabled individual, that family would receive, with the head of the household being disabled, about $350,000 under the 

current Social Security system, and it really demonstrates the 

greatness of this system. And all of the employees of the administration who are administering the program, you will at least give 

some comfort to the lives of those Americans who have suffered so 

severely by this tragic moment in American and world history. We 

want to again thank you for that. 

Mr. Chairman, again, I want to thank you and commend you for 

holding this hearing today, and I look forward to Representative 

Kelly from New York and, obviously, the other witnesses as well. 

Chairman SHAW. Thank you, Bob, and it is a pleasure to be 

working in a bipartisan way, which is sometimes too rare in this 

Committee as well as other committees. 

As our first witness, we have our colleague, Sue Kelly, from the 

State of New York. We have your full statement, which will be 

placed in the record, and you may proceed as you see fit. Welcome 

to the Committee. 

STATEMENT OF HON. SUE W. KELLY, A REPRESENTATIVE IN 

CONGRESS FROM THE STATE OF NEW YORK 

Mrs. KELLY. Thank you very much. Chairman Shaw, Congressman Matsui, and members of the Subcommittee, I thank you for 

allowing me to testify here today on this subject. 

The Financial Services Subcommittee on Oversight and Investigations, of which I am the chairman, has investigated the issue 

of timely release of death information by the Social Security Administration to the financial services industry and its links to identity theft. I appreciate this opportunity to review the problems we 

have found and discuss the potential solutions with your Subcommittee. 


E:\HR\OC\D410A.XXX
9

According to the Federal Trade Commission, identity theft was 

the top consumer complaint received last year, with the rate of 

complaints and inquiries increasing at an alarming rate with the 

widespread use of the Internet technology. Numerous examples of 

organized identity theft, with great cost to the victims, retailers, 

and lenders, can be found all around our country. 

In addition, the families of the recently deceased are especially 

vulnerable because they are so engaged in the aftermath of the 

death that steps are not taken to properly protect the deceased’s 

Social Security number and to monitor the deceased’s accounts. 

Last year, two felons—James Jackson and Derek Cunningham—

assumed the identities of numerous executives, living and deceased, and purchased over $730,000 worth of gems and watches 

using credit they obtained using the stolen identities. The victims 

included senior executives of some of America’s best-known companies, such as Coca-Cola, Lehman Brothers, Hilton Hotels, and 

Wendy’s International. The deceased chairman of Wendy’s had 

been dead for only 10 days when the Jackson gang stole his Social 

Security number and misused it. Fortunately, the law caught up 

with them, and they are awaiting sentencing in New York City. 

Staff of the Financial Services Committee met with officials of 

the Social Security Administration to begin a review of the process 

by which Social Security numbers of the deceased are transmitted 

to the financial services industry for permanent deactivation. As 

you may know, the SSA updates the Death Master File and sends 

it by magnetic tape through regular mail to another Federal government agency each month for commercial distribution. That 

agency makes copies of the original tape and, again, mails out copies to the subscribers. Now, obviously, this is going to be a long 

process. It is all done by snail mail. 

The Financial Services Committee has concluded that this is an 

antiquated process that creates a window of opportunity for techsavvy criminals. And I know you agree that this process, which can 

take well over 30 days from the time of death, is completely outdated when we can securely and instantly update information 

through the Internet. 

Most recently, however, we learned that this issue is now a matter of our national security and safety. This Washington Post article from Saturday, September 29, states that Lofti Raissi, held by 

the British on suspicion that he trained four of the hijackers, had 

used the Social Security number of a New Jersey woman who has 

been dead for 10 years. You take this issue of timely release and 

use the Social Security information to a new level. I think that this 

requires immediate action. 

As you, Mr. Chairman, pointed out, the newspapers have reported now a man that attempted about October 2 to steal the 

identity of a victim of the World Trade Center of September 11. It 

was only from September 11 to October 2 that it took for this man 

to get that Social Security number and try to fake that ID. 

I would like to know if I could insert both of these in the record, 

with your permission. 

Chairman SHAW. Without objection. 

[The articles follow:]


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10

U.S. Develops Picture of Overseas Plot

Hijackers Spent $500,000; at Least 4 Trained in Afghan Camps 

By Dan Eggen and Bob Woodward 

Washington Post Staff Writers 

Saturday, September 29, 2001; Page A01 The terrorists who carried out the Sept. 11 attacks were bankrolled with $500,000 

from overseas that financed an operation planned and launched several years ago 

in Germany, with crucial support in Britain, the United Arab Emirates and Afghanistan, senior government officials have concluded. 

U.S. investigators have determined that at least four of the 19 suspected hijackers 

were trained at camps in Afghanistan run by Osama bin Laden, whose al Qaeda 

network is believed responsible for the assaults on New York and Washington. They 

also have tentatively concluded there are links between bin Laden and most of the 

other hijackers, according to information gathered by the Justice Department, FBI 

and CIA. 

Government investigators are becoming increasingly convinced that one or two 

other hijackings were in the works, officials said, and are focusing on three men in 

U.S. custody who received flight training. One was detained while seeking flight 

simulator training in Minnesota before the hijackings, and two others were arrested 

on a train in Texas after departing on a jet that was grounded after the attacks, 

sources said. 

Government officials said other people in the United States might have provided 

minor assistance or had knowledge that a terrorist operation was underway. But the 

FBI has found little evidence so far that the teams of hijackers received much support here, sources said. ‘‘There seems to be no U.S. mastermind,’’ one official said. 

The Justice Department has cast a global dragnet over the last two weeks in a 

hunt for accomplices. It is narrowing its criminal investigation to a number of individuals and is beginning to formulate criminal charges that could be filed against 

them, sources said. But a senior Justice official declined to predict when the first 

indictment might be handed down. 

‘‘We are past the first phase, and we are beginning to sharpen and focus the investigation,’’ one Justice official said. ‘‘You don’t get smoking guns in a case like 

this. The key is going to be in the details, in putting together the pieces, and we’ve 

gone a long way to doing that.... We’re looking with particularity at a number of 

people.’’

The disclosures provide the most complete picture yet of the direction and scope 

of the U.S. investigation into the deadliest terror attack in American history, which 

has left 6,500 people missing or dead in New York, Washington and Pennsylvania. 

The hijackings have led to arrests on every continent but Antarctica. 

In tracing $500,000 flowing into U.S. bank accounts used by Mohamed Atta and 

other suspected Members of the hijacking teams, the FBI has documented numerous 

large cash withdrawals and a long trail of hotels, rental cars and airplane trips that 

largely dispel any notion of an austere plot, a senior government official said. Previous reports have said the attacks cost no more than $200,000. 

Some of the money used to prepare the attack has already been linked to accounts 

in the Middle East, the source said, and investigators have documented instances 

of simultaneous withdrawals from the same account in different cities. 

‘‘This was not a low-budget operation,’’ the official said. ‘‘There is quite a bit of 

money coming in, and they are spending quite a bit of money.’’

Investigators are convinced that the details of the terror plot were hatched in 

Hamburg, Germany, where Atta and two other suspected hijackers, Marwan AlShehhi and Ziad Samir Jarrah, are believed to have run a terrorist cell out of a second-floor student apartment. 

The FBI is doubling its contingent of agents working on the investigation in Germany, in the belief that the trail will lead from there to the Middle East, one official 

said. The initial concept for the Sept. 11 attacks likely came from Afghanistan, 

where bin Laden is believed to be hiding, another official said. 

Investigators have found that the suspected leaders in the plot moved in and out 

of the United States beginning at least 18 months ago, with lower-level hijackers 

not arriving until this year. Atta returned to Germany at least twice after arriving 

in the United States, a source said. 

‘‘There were two groups on each plane,’’ one senior official said. ‘‘You’ve got the 

brains, who are the pilots and the leaders, and then you have the muscle coming 

in later on. They were the ones who held the passengers at bay.’’

The FBI is deeply suspicious of the circumstances surrounding three key men who 

have been detained in the case. Zacarias Moussaoui was taken into custody in MinVerDate Jan 17 2002 05:44 Feb 20, 2002 Jkt 077410 PO 00000 Frm 00014 Fmt 6633 Sfmt 6621 E:\HR\OC\D410A.XXX pfrm03 PsN: D410A

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nesota in August after he attempted to pay cash to learn how to steer, but not take 

off or land, a jumbo jet. 

Moussaoui is not cooperating with authorities. 

Two others, Mohammed Jaweed Azmath and Ayub Ali Khan, were detained on 

an Amtrak train Sept. 12 in Fort Worth with hair dye, large amounts of cash and 

box-cutter knives like the ones used in the hijackings. The men, who had lived in 

Jersey City, had flown on a plane from Newark to St. Louis that was grounded after 

the attacks. Both men had flight training, one source said. 

FBI agents have combed the passenger manifest on that flight and have not found 

anyone else who is believed to be a potential hijacker, an official said. 

Adding another important element to the global investigation, British authorities 

yesterday accused an Algerian pilot of training four of the hijackers, including the 

apparent pilot of the jet that crashed into the Pentagon. 

During an extradition hearing in London, British prosecutor Arvinda Sambir suggested that Lotfi Raissi, 27, may have been a knowing participant in the terrorist 

plot, and that U.S. authorities might charge him with conspiracy to murder. ‘‘The hope is that he will be able to tell us who planned what and when,’’ added 

one senior U.S. official. 

However, the British prosecutor left open the possibility that Raissi may have instructed the hijackers at an Arizona flight school without knowing their intentions. 

Defense lawyer Richard Egan said Raissi ‘‘adamantly denies any involvement in the 

recent appalling tragedies.’’ In a sign of U.S. investigators’ intense interest in the case, eight FBI agents attended the hearing at Bow Street Magistrates’ Court. The court ordered Raissi held 

in jail for another week, pending a second hearing on the U.S. extradition request. 

The original request, issued June 19, said Raissi had given false information on 

an application for a U.S. pilot’s license. Now, authorities want to pursue his alleged 

connections with the hijackers. 

Dressed in a white track-suit top and pants, Raissi spoke only to confirm his 

name during the brief hearing,. 

Sambir said that Raissi, who was arrested in Britain last week, had visited the 

United States several times this year. The evidence against him, she said, includes 

a videotape of him flying on June 23 from Las Vegas to Phoenix with Hani Hanjour, 

who is believed to have been the pilot of American Airlines Flight 77, the plane that 

hit the Pentagon. 

In June, Hanjour was a Member of the flight simulator club of the Sawyer School 

of Aviation in Phoenix, according to the school’s spokeswoman. Raissi was also a 

Member of the Phoenix flight simulator club for 5 months this year and used a 

flight simulator at a Phoenix area airport at the same time as Hanjour, according 

to the aviation school. ‘‘He was a lead instructor of four of the pilots that were responsible for the hijackings,’’ Sambir said in court. ‘‘We say he was there to ensure that the pilots were 

capable and trained for this purpose,’’ she added. 

Raissi received a U.S. commercial pilot’s license in January 1999, with a rating 

to fly a Boeing 737. Two days later, he was certified as a ground instructor, and 

in March 1999, he received a license to be a flight instructor. 

Raissi lived in a Phoenix apartment complex and listed himself as both a student 

and employee at Westwind Aviation Academy, a flight school at the Phoenix Deer 

Valley Airport, according to the East Valley Tribune, a Mesa, Ariz., newspaper. 

Raissi has said he trained at Westwind in 1997 and 1998, according to documents 

the FBI showed to another local flight school director. 

Westwind was acquired 2 years ago by Pan Am International Flight Academy, a 

Florida company. Todd Huvard, a vice president at Pan Am International, said the 

company was cooperating with the FBI but would not release any information to 

the press. 

Last week, police searched Raissi’s apartment in the village of Colnbrook, Berkshire, near London’s Heathrow airport, and took a flight manual and a pilot’s logbook that had several pages torn out, authorities said. 

In an odd twist, a database search of public records shows that Raissi had used 

the Social Security number of a Jersey City woman who died in 1991. The woman, 

Dorothy Hansen, was a retired factory worker. 

Hansen’s grandson, Carl G. Hansen III, 37, said he had never heard of Raissi. 

Joyce Mastrangelo, Dorothy Hansen’s daughter, said she was astounded. 

‘‘Oh my God, how did he get that?’’ Mastrangelo said. ‘‘My mother has been dead 

10 years.’’

In other developments yesterday: 

• Attorney General John D. Ashcroft released a four-page letter in Arabic that 

was found among the belongings of men on three of the hijacked jetliners. The letter 


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includes Islamic prayers, speaks of death for a glorious cause, and reminds the reader not to forget his knives and passport. 

The letter, first detailed in yesterday’s Washington Post, demonstrates how the 

Muslim hijackers ‘‘grossly perverted the Islamic faith,’’ said Ashcroft, who repeated 

that Muslims in the United States ‘‘deserve dignity and respect.’’ Identical letters were discovered in three places. One was found inside a car 

parked at Dulles International Airport, starting point of the flight that crashed into 

the Pentagon. The second was found at the Pennsylvania crash site of United Flight 

93. The third was found in the Boston luggage of Atta, who was aboard one of the 

planes that plunged into the World Trade Center. • Ashcroft said more than 480 people have been arrested or detained during the 

first 18 days of a quest he has called the largest criminal investigation in the nation’s history. 

Although bin Laden has been identified by President Bush as the sponsor of the 

Sept. 11 attacks, Ashcroft said investigators ‘‘have not ruled out the participation 

of any individual or any organizations in this attack.’’ • FBI Director Robert S. Mueller III contested reports that FBI agents have posed 

questions about political beliefs to Muslims, Sikhs and Arab Americans who have 

been stopped or detained as part of the investigation. He said questioning focuses 

on relationships with the 19 suspected hijackers and their associates, and ‘‘may 

cross over into relationships that may have sprung out of attendance at, for instance, religious meetings. But there is no effort to delve into either the political 

or the religious beliefs of individuals.’’ • In Cedar Rapids, Iowa, the Secret Service arrested Youssef Hmimssa, who had 

been wanted under the alias Jalali. Authorities said they believe he may have 

knowledge of a terrorist threat against former defense secretary William Cohen. 

Hmimssa was indicted Thursday, along with two other men, by a Federal grand 

jury in Detroit on two counts of fraud. During a Sept. 18 search of a Detroit apartment, FBI agents seized false immigration papers and a fake passport bearing the 

name Michael Saisa and a picture believed to be that of Hmimssa or Jalali, two of 

five aliases cited by authorities. He was also wanted in Chicago on charges of financial-related fraud and false identification charges. 

Agents also found a day planner that refers to the ‘‘American defense minister’’ and contains an apparent sketch of the U.S. air base in Incirlik, Turkey. Cohen canceled a visit to Incirlik last December after learning of a ‘‘credible threat against 

him,’’ according to a former Department of Defense officials.

Special correspondent Adi Bloom in London; staff reporters Sari Horwitz, Lena Sun, Scott 

Higham, Fredrick Kunkle, Allan Lengel, Peter Slevin and Marcia Slacum Greene, and researchers Bobbye Pratt and Margot Williams contributed to this report.

Man indicted for attempting to steal identity of WTC victim 

heraldsun.com 

By The Associated Press 

October 31, 2001 8:16 am 

GREENSBORO—A North Carolina man has been indicted on charges he tried to 

steal the identity of someone killed in the terrorist attack at the World Trade Center. 

The U.S. Secret Service arrested Jermaine Lamar McCall, 20, of Laurel Hill, on 

Friday after he was indicted on charges of making false statements to a bank and 

identity theft. U.S. Attorney Benjamin H. White Jr. announced the indictment Tuesday. 

The indictment, handed down by a Federal grand jury in Greensboro, charges that 

on or about Oct. 2, McCall applied for a Citibank credit card using the name, Social 

Security number and birth date of a victim of the Sept. 11 attacks. 

The false statement to a bank charge carries a maximum possible penalty of 30 

years in prison and a $1 million fine. The identity theft charge carries a maximum 

Representative Mike Oxley, and I agree: Whether someone has 

penalty of 3 years in prison and a $250,000 fine.

Mrs. KELLY. The chairman of the Financial Services Committee, 

f been dead for as little as 10 days or as long as 10 years, that Social 

Security number should never be available for illegal use, and the 


E:\HR\OC\D410A.XXX
13

financial services industry should have the knowledge of the death 

and the ability to apply it right away. We must stop crooks and terrorists from so easily using someone else’s Social Security number 

to obtain credit or verify a false identity. That is why we asked the 

Social Security Administration to take a fresh look at the way they 

release Social Security numbers of the deceased and asked that the 

U.S. General Accounting Office (GAO) quickly review the issue, including the industry’s use of death information. We have to throw 

open the doors, we have to cut the red tape, and we have to tear 

down these barriers to preventing identity theft. We have to make 

sure that we can know who these people really, truly are. It is important that you are having this hearing today. 

We have to ensure at the very least that the industry can readily 

distinguish inactive Social Security numbers from active ones, 

starting with the transmission from SSA to the financial services 

industry almost immediately after death. The GAO briefed senior 

staff of your Subcommittee and mine last week on their initial 

progress in response to our letter. They have already found areas 

for improvement, and we look forward to holding a joint Subcommittee hearing with you, Mr. Chairman, in the very near future 

to review this issue in more detail. I speak for the Committee 

chairman and for all Members of the Financial Services Committee 

in pledging to work with you toward a permanent solution to this 

problem. 

I have a copy of the September 29 article from the Washington 

Post, as well as the letters that we have written to the SSA, the 

GAO, the Committee’s press release of October 5, and the October 

18 response of the Social Security Commissioner to this inquiry, 

and I ask unanimous consent that all of this be included in the 

record. 

I thank you again for the opportunity to testify, and I am glad 

to take any questions you may have. 

[The information follows:]

U.S. House of Representatives 

Washington, DC 20515

October 3, 2001

Mr. Larry G. Massanari, Acting Commissioner 

Social Security Administration 

500 E. Street, SW 

Washington, DC 20254

Dear Acting Commissioner Massanari: 

We need your immediate action to protect the American people from the theft of 

a deceased’s Social Security number. Such a theft now appears to have played a role 

in the terrorists’ attacks on our country on September 11. Social Security numbers 

have become too easy for criminals to use to commit fraud, and it is too difficult 

for regulated finance companies to prevent fraud using stolen numbers. 

A Washington Post article on Saturday, September 29, reported that a man suspected of training four of the terrorists who hijacked the airliners on September 11 

used the Social Security number of a New Jersey woman who died in 1991. The 

woman’s relatives had never heard of the suspect and were astounded at the use 

of the Social Security number 10 years after the woman’s death. It appears from 

the published report that the Social Security number was included in the Death 

Master File released regularly by your office. 

For several months, the Committee on Financial Services has investigated the 

process of collecting and distributing information on deaths and is concerned that 

the current notification system may be outdated, inefficient, and untimely. We have 

studied other cases of identity theft and heard from numerous constituents who suffered fraud perpetrated through the identity theft of a recently deceased family 

Member. Fraud losses in just one case totaled more than $730,000, because the fiVerDate Jan 17 2002 05:44 Feb 20, 2002 Jkt 077410 PO 00000 Frm 00017 Fmt 6633 Sfmt 6621 E:\HR\OC\D410A.XXX pfrm03 PsN: D410A

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14

nancial institutions involved did not receive timely notice of the victims’ deaths. In 

each case, the fraud could have been prevented, or at least limited, through a more 

timely and targeted release of the Death Master File. 

However, in light of the Washington Post report, the need to ensure the immediate and permanent deactivation of deceased’s Social Security numbers is greater 

than ever. It is now a matter of the protection of our national security and the safety of each and every American. 

We need to get used Social Security numbers to the credit bureaus and credit card 

issuers much more quickly to prevent future incidents. At a time when instantaneous and secure updating of information through the Internet has become a routine practice, we fail to see why it should take well over a month before the financial 

services industry receives a deceased’s name and Social Security number in a complete and official file. We also need to ensure that such numbers can never be used 

again to obtain credit, obtain funds in any way, or improperly verify another person’s identity. 

Please contact us by October 19 to let us know how these concerns can be addressed, and whether any additional congressional action is necessary to facilitate 

your efforts. We also plan further follow-up on the timeliness of the collection of 

death information and how financial institutions could better use the information 

upon distribution without creating opportunities for additional fraud or a criminal 

purpose. We are also requesting that the General Accounting Office immediately 

begin a review of the matter and provide recommendations for action by SSA and 

the financial services industry. 

Sincerely, 

Michael G. Oxley 

Chairman 

Committee on Financial Services 

Marge Roukema 

Vice-Chair 

Committee on Financial Services 

Sue W. Kelly 

Chairwoman 

Subcommittee on Oversight and Investigations 

U.S. House of Representatives 

Washington, DC 20515

October 3, 2001

Hon. David M. Walker 

Comptroller General of the United States 

U.S. General Accounting Office 

441 G Street, NW 

Washington, DC 20548

Dear Comptroller Walker: 

We need your immediate action to protect the American people from the theft of 

a deceased’s Social Security number. Such a theft now appears to have played a role 

in the terrorists’ attacks on our country on September 11. Social Security numbers 

have become too easy for criminals to use to commit fraud, and it is too difficult 

for regulated finance companies to prevent fraud using stolen numbers. 

A Washington Post article on Saturday, September 29, reported that a man held 

in Great Britain, and suspected of training four of the terrorists who hijacked the 

airliners on September 11, used the Social Security number of a New Jersey woman 

who died in 1991. The woman’s relatives had never heard of the suspect and were 

astounded at the use of the Social Security number 10 years after the woman’s 

death. It appears from the published report that the Social Security number was 

included in the Death Master File, raising the question how the suspect improperly 

re-used the number. 

For several months, the Committee on Financial Services has investigated the 

process of collecting and distributing information on deaths and concluded that this 

notification system is outdated, inefficient, and untimely. We have studied other 

cases of identity theft and heard from constituents who suffered fraud perpetrated 

through the identity theft of a recently deceased family Member. Fraud losses in 

just one case totaled more than $730,000, because the financial institutions involved 

did not receive timely notice of the victims’ deaths. In each case, the fraud could 

have been prevented, or at least limited, through a more timely release of the Death 

Master File. 


E:\HR\OC\D410A.XXX
15

However, in the wake of news that a deceased’s Social Security number might 

have been used by a suspect in the deadly acts inflicted on our country, the need 

to ensure their immediate and permanent deactivation is greater than ever. It is 

now a matter of the protection of our National security and the safety of each and 

every American. 

We need to get the Social Security numbers to the credit bureaus and credit card 

issuers much more quickly to prevent another such incident. At a time when instantaneous and secure updating of information through the Internet has become a routine practice, we fail to see why it should take well over a month before the financial 

services industry receives a deceased’s name and Social Security number in a complete and official file. We also need to ensure that such numbers can never be used 

again to improperly obtain credit or funds in any way or to verify another person’s 

identity. 

Accordingly, we are asking GAO to examine the full process of gathering and distributing death information, recommend how to accelerate it and how to permanently deactivate such numbers. Specific areas of inquiry should include, but not be 

limited to, the following: (1) How much time does each stage of the process take, 

from initially gathering the information to the receipt of the DMF by subscribers? 

(2) What actions could be taken to ensure more timely collection and transmittal 

to financial institutions to reduce the potential for fraud? (3) Would it be possible 

for the SSA to update the master death list on a daily or weekly basis with an immediate electronic transfer to the NTIS, or to the financial services industry without 

NTIS’s involvement? (4) What steps need to be taken by SSA and the financial services industry to ensure that such numbers are never used again? 

Please provide the Committee staff with the information and recommendations 

you have developed on the subject by Friday, October 19. Due to the critical impact 

of identity theft on our National security, we are asking that you place this review 

ahead of all others requested by the Committee. 

Sincerely, 

Michael G. Oxley 

Chairman 

Committee on Financial Services 

Marge Roukema 

Vice-Chair 

Committee on Financial Services 

Sue W. Kelly 

Chairwoman 

Subcommittee on Oversight and Investigations 

CURRENCY 

Committee on Financial Services 

Michael G. Oxley, Chairman 

For Immediate Release: CONTACT: Peggy Peterson at 226–0471

Friday, October 5, 2001

Oxley, Roukema, Kelly Seek to Prevent Identity Theft

by Terrorists and Criminals,

Urge Quick government Action to Close Loophole 

Seeking to prevent identity theft and financial fraud, House Financial Services 

Chairman Michael G. Oxley (OH), Vice Chairwoman Marge Roukema (NJ), and 

Oversight and Investigations Subcommittee Chairwoman Sue Kelly (NY) today revealed a government loophole that makes identity theft easier. They called on the 

Social Security Administration (SSA) to take quick action to close it. 

The Members have discovered a lapse in SSA practices that Oxley says ‘‘presents 

an engraved invitation on a silver platter to an identity thief.’’

What makes the gaping loophole even worse is that the vulnerable identities are 

those of deceased individuals. Making the matter more urgent is the fact that a man 

being held on suspicion of involvement in the September 11 hijacking attacks illegally used the Social Security number of a New Jersey woman who died in 1991. 

Oxley added, ‘‘Now we know that the terrorist MO might include identity theft, 

it’s critical for the SSA to take extra steps to protect Americans’ Social Security 

numbers and their identities.’’


E:\HR\OC\D410A.XXX
16

‘‘Tightening up practices at the SSA will help to foil common thieves stealing 

identities to obtain illegal credit cards, as well as brutal terrorists who may be plotting something much worse,’’ Roukema said. 

In a letter to the SSA, Oxley, Roukema, and Kelly called for modernization of the 

gathering and distribution of death information to the financial services industry. 

The Members are seeking immediate and permanent deactivation of Social Security 

numbers, whether an individual has been dead for ten years or 10 days. Oxley is 

considering adding such a legislative provision to his anti-money laundering package introduced Wednesday, H.R. 3004, the Financial Anti-Terrorism Act. 

The SSA actually uses ’snail mail’ every month to send a cartridge of death information to another Federal agency, which copies it again and sends it—again 

through regular mail—to subscribers like credit bureaus, credit card issuers, and 

other financial institutions. The whole process takes well over a month. In the 

meantime, Social Security numbers and accounts remain active, and identities are 

up for grabs by clever thieves. Because of the time gap, criminals can deplete lifelong savings before the deceased victim’s financial institutions are even informed of 

the death. ‘‘Terrorists have shown they will use any means at their disposal to carry out 

their monstrous plans. Closing these loopholes will take away another tool in the 

terrorists’ arsenal,’’ Kelly said. ‘‘The Federal government needs to act swiftly to prevent this from happening again.’’ ‘‘The Social Security Administration has the power to stop rip-off artists and terrorists from victimizing the dead and their grieving families,’’ Oxley said. ‘‘The financial services industry needs to have an official notification of a person’s death 

from the Federal government quickly and permanently—preferably by electronic means—to prevent identity theft and financial losses.’’ The Committee investigated the theft of Social Security numbers by James R. 

Jackson and Derek Cunningham, who admitted to stealing hundreds of thousands 

of dollars by assuming the identities of live and deceased victims. One Ohio victim 

had been deceased for 10 days when Jackson and Cunningham stole his Social Security number, assumed his identity, and arranged the transfer of $300,000 from the 

corporate executive’s life savings to buy diamonds and watches for resale on the 

black market. 

These felons and others like them would have had a much more difficult time 

stealing identities if the Federal government had sent official notification to the 

credit bureaus and credit card companies sooner.

Social Security Administration 

Baltimore, Maryland 21235

October 18, 2001

Hon. Michael G. Oxley 

Chairman, Committee on Financial Services 

House of Representatives 

Washington, DC 20515

Dear Mr. Chairman: 

This is in response to your letter of October 3, 2001 regarding the theft of deceased individuals’ Social Security numbers. We share your concerns about potential 

fraudulent use of death information and your interest in providing it in a timely, 

accurate and secure manner, 

The Social Security Administration (SSA) releases the fact of death and the individual’s name, date of death and SSN to any requestor under the terms of a court 

settlement made in 1980 in connection with a Freedom of Information Act lawsuit 

brought against SSA. SSA makes the Death Master File (DMF) available through 

the Department of Commerce’s National Technical Information Service (NTIS). 

NTIS sells the information to the private sector. Any private sector customer (e.g., 

credit card companies, financial institutions) can purchase the DMF from NTIS. 

Clearly the value of the DMF to users would be enhanced if updates, which are 

currently offered to subscribers on a monthly basis, were to be provided more frequently. That value could be further enhanced if the files and updates were provided electronically rather than through magnetic media, as is the current case. 

I share your concern that we do everything we can to make timely and reliable 

information about deaths available to members of the financial community. As more 

information becomes available to us concerning activities leading up to the events 

of September 11, the need to strengthen our existing processes in this area is clear. 

We are reviewing our current procedures in this area and look forward to working 

with you, the members of your Committee, and others in the Congress to enhance 


E:\HR\OC\D410A.XXX
17

the value of our DMF to the many subscribers who rely on it for information regarding deaths that occur in this country.We are providing the same information to Representatives Sue Kelly and Marge Roukema. 

Sincerely, 

Larry G. Massanari 

fActing Commissioner of Social Security

[The prepared statement of Mrs. Kelly follows:]

Statement of the Hon. Sue W. Kelly, a Representative in Congress from the 

State of New York 

Chairman Shaw, Congressman Matsui, and members of the Subcommittee, thank 

you for allowing me to testify here today on this subject. The Financial Services 

Subcommittee on Oversight and Investigations, which I chair, has investigated the 

issue of the timely release of death information by the Social Security Administration to the financial services industry and its links to identity theft. I appreciate 

this opportunity to review the problems we have found and discuss potential solutions with your Subcommittee. 

According to the Federal Trade Commission, identity theft was the top consumer 

complaint received last year, with the rate of complaints and inquiries increasing 

at an alarming rate with the widespread use of Internet technology. Numerous examples of organized identity theft, with great cost to the victims, retailers, and lenders, can be found around the country. 

In addition, the families of the recently deceased are especially vulnerable, because they are so engaged in the aftermath of the death that steps are not taken 

to properly protect the deceased’s Social Security number and monitor the 

deceased’s accounts. Last year, two felons, James Jackson and Derek Cunningham, 

assumed the identities of numerous executives, living and deceased, and purchased 

over $730,000 in gems and watches using the credit they obtained using the stolen 

identities. The victims included senior executives of some of America’s best-known 

corporations, such as Coca-Cola, Lehman Brothers, Hilton Hotels, and Wendy’s 

International. The deceased chairman of Wendy’s had been dead for only 10 days 

when the Jackson gang stole his Social Security number and misused it. Fortunately, the law caught up to them, and they are awaiting sentencing in New York 

City. 

Staff of the Financial Services Committee met with officials of the Social Security 

Administration to begin a review of the process by which Social Security numbers 

of the deceased are transmitted to the financial services industry for permanent deactivation. As you may know, SSA updates the Death Master File only on a monthly 

basis and sends it by magnetic tape through regular mail to another government 

agency each month for commercial distribution. That agency makes copies of the 

original tape and, again, mails the copies out to subscribers. The Financial Services 

Committee has concluded that this antiquated process creates a window of opportunity for tech-savvy criminals. I know you agree that this process, which can take 

well over 30 days from the time of death, is completely outdated when we can securely and instantly update information through the Internet. 

Most recently, however, we learned that this issue is now a matter of our national 

security and safety. This Washington Post article from Saturday, September 29, 

states that Lofti Raissi, held by the British on suspicion that he trained 4 of the 

hijackers, had used the Social Security number of a New Jersey woman who has 

been dead for 10 years! This takes the issue of timely release and use of Social Security information to a new level that requires immediate action. 

The Chairman of the Financial Services Committee, Mike Oxley, and I agree: 

Whether someone has been dead for as little as 10 days or as long as 10 years, that 

Social Security number should never be available for illegal use, and the financial 

services industry should have the knowledge of the death and the ability to apply 

it. We must stop crooks and terrorists from so easily using someone else’s Social Security number to obtain credit or verify a false identity. That is why we asked the 

Social Security Administration to take a fresh look at the way they release Social 

Security numbers of the deceased and asked the General Accounting Office to quickly review the issue, including the industry’s use of death information. We have to 

throw open the doors, cut the red tape, and tear down the barriers. 

We must ensure at the very least that the industry can readily distinguish inactive Social Security numbers from active ones, starting with the transmission from 


E:\HR\OC\D410A.XXX
18

SSA to the financial services industry almost immediately after death. GAO briefed 

senior staff of your Subcommittee and mine last week on their initial progress in 

response to our letter. They have already found areas for improvement, and we look 

forward to holding a joint Subcommittee hearing with you, Mr. Chairman, in the 

very near future to review this issue in more detail. I speak for the Committee 

Chairman and all members of the Financial Services Committee in pledging to work 

with you towards a permanent solution to this problem. 

I have a copy of the September 29, 2001 article from the Washington Post, the 

letters that we wrote to SSA and the GAO, the Committee’s press release of October 

5, and the October 18 response of the Social Security Commissioner to this inquiry. 

I ask unanimous consent that they be included in the record. 

ters that you asked unanimous consent to be placed in the record 

Thank you again for this opportunity.

Chairman SHAW. Thank you, and without objection, those matf will be. 

We look forward to meeting with you. We will be announcing 

today the joint meeting that we will be having with your Subcommittee next week in order to discuss and explore the issues related to the Death Master File and identity theft, and we look forward to working with your Committee. 

Do any of our Members have any questions for Mrs. Kelly? 

[No response.] 

Chairman SHAW. Thank you very much for being with us this 

morning. We look forward to being with you at a hearing next 

week. 

We now have, as Mr. Matsui pointed out, three witnesses to 

come to the table. We have the Acting Commissioner of Social Security, Larry Massanari, who I think is still looking forward to 

passing the baton on to his successor. He tells us that every time 

he comes here. And we have Beatrice Disman from the New York 

Region. She is the commissioner of the New York Region. And Laurie Watkins is the acting Philadelphia regional commissioner. 

Welcome, and you may proceed, Mr. Acting Commissioner, as you 

see fit. Your full statement, as you well know, will be made a part 

of the record. 

STATEMENT OF LARRY G. MASSANARI, ACTING COMMISSIONER, SOCIAL SECURITY ADMINISTRATION, ACCOMPANIED BY BEATRICE M. DISMAN, NEW YORK REGIONAL 

COMMISSIONER, AND LAURIE WATKINS, ACTING PHILADELPHIA REGIONAL COMMISSIONER 

Mr. MASSANARI. Thank you, Mr. Chairman. 

Mr. Chairman, Mr. Matsui, Members of the Subcommittee, thank 

you for inviting us here today to discuss SSA’s response to the September 11 terrorist attacks. We at SSA, along with the rest of the 

Nation, were deeply affected by the tragic events of that day, and 

we responded immediately to the needs of the victims and their 

families. 

Before I begin, though, I, too, want to acknowledge the dedicated 

service of the two regional commissioners who are here with me 

today. On my right is Bea Disman, the regional commissioner in 

New York, and on my left, the acting regional commissioner for 

Philadelphia, Laurie Watkins. They and their staffs have worked 


E:\HR\OC\D410A.XXX
19

tirelessly to provide prompt and compassionate service to those affected by these acts of terror. 

I also want to recognize the extraordinary efforts of SSA’s employees, particularly those in the New York and Philadelphia regions. Reflecting the very finest traditions of our agency, they have 

set aside their personal concerns, because they recognized the importance of what they do for the American people. They have handled the difficult and delicate task of working with the survivors 

to help them obtain benefits, and they have done that with compassion and with speed. 

I had the opportunity in September to visit the Family Assistance Centers in both New York and Virginia, where SSA staff have 

worked long hours to provide information and to take claims. Officials and families at both locations have had high praise for SSA’s 

employees. At the Pentagon site, the director of the Center, U.S. 

Army Lieutenant General John Van Alstyne told me that SSA employees are truly professionals with a heart. Quite honestly, I could 

not agree more. 

Let me now briefly outline for you what we have done to help 

the survivors and also what we have done to restore agency operations. 

The human toll, of course, is staggering, and we don’t yet know 

what the total number of claims will be. But at this time it is well 

over 4,000. And over half of those are for children who have lost 

parents. We have also taken a small number of disability claims, 

something in the neighborhood of 50 now, although we expect that 

number will rise in the near future. 

After the September 11 attacks, SSA immediately invoked special emergency procedures to ensure that survivor claims could be 

taken and paid as quickly as possible. 

We have taken claims at many locations, including the family assistance centers, at facilities set up by large employers, in our own 

field offices, through our 800 numbers at hospitals, and even in 

local congressional offices. 

We have also conducted a full-scale, aggressive outreach effort to 

make sure that no family eligible for benefits is overlooked. We 

have a special Web page with information about how to apply for 

both survivor and disability benefits. 

By the Sunday following the attacks, public information spots 

were in virtually every media outlet in New York City, both 

English and Spanish. On September 11, all Social Security offices 

were closed early while we assessed the need for added security. 

But the next day, all facilities were open, except for offices in New 

York City. 

On September 13, 2 days after the attacks, our New York City 

offices reopened—except for those in Lower Manhattan—and the 

staffs from those offices were redeployed in other facilities throughout the city. 

As for the security of our facilities, we are now screening visitors 

more thoroughly and increasing our inspections of packages, delivery vehicles, transit buses, and we are carefully screening all vehicles that use underground parking. We have also placed guards in 

the 322 field offices that did not previously have security guards. 


E:\HR\OC\D410A.XXX
20

Recently, we have had a number of anthrax scares in several of 

our offices. Thankfully, all of those scares have been unfounded. 

But every report of a suspicious incident is taken very seriously 

and is thoroughly investigated. And we are asking all of our employees to remain alert, vigilant, and cautious. 

Let me now turn, Mr. Chairman, if I might, to an issue that 

deeply disturbs all of us at SSA. There are indications, as you 

know, that some of the terrorists had Social Security cards which 

may have been fraudulently obtained. As soon as we learned of 

this, we created a high-level response team made up of persons 

from around our organization and the Inspector General’s Office to 

re-examine our entire enumeration process. They are working to 

ensure that we are taking all necessary precautions to prevent 

those with criminal intent from using Social Security numbers to 

advance their operations. The team has already made several 

short-term recommendations that we are now considering. 

Over the last few years, we have made changes to our Social Security number procedures seeking to strike a balance between the 

integrity of the process and responsive service. But we all know 

that the world changed on September 11, and now we need to reassess that balance between security and public service. 

I want to thank you, Mr. Chairman, and the Members of the 

Subcommittee for your efforts in protecting the integrity of the Social Security number process and also in protecting the privacy of 

the American people. We at SSA look forward to working with you 

on H.R. 2036, which seeks to further these goals. 

We also look forward to working with the Subcommittee to address your concerns about the Death Master File. 

Finally, I would like to acknowledge and thank SSA’s Office of 

the Inspector General for the significant role that they have played 

in the investigation of the terrorist attacks. The Inspector General 

is coordinating activities with SSA components and is working side 

by side with the FBI and with other Federal law enforcement agencies. Their hard work and their expertise in the area of Social Security number misuse have been absolutely invaluable. 

To conclude, Mr. Chairman, as you know, SSA has long sought 

to educate the American public that Social Security is far more 

than a retirement program. But, sadly, nothing has brought home 

that message quite as vividly as the tragedy of September 11. 

Take, for example, the story of a man whose wife was killed at the 

World Trade Center. He was ready to sell the family’s home because he as a stay-at-home dad could no longer afford it. But after 

a Social Security representative told him that he and his young 

child were eligible for survivor benefits, he was able to take his 

home off the market. 

All of SSA mourns the losses suffered by thousands of our fellow 

Americans, and we remain committed to doing everything possible 

to support the families of the victims. We also remain committed 

to protecting employees and visitors to our offices against any biological threats. And, finally, we are fully committed to safeguarding 

the integrity of the enumeration process. 

I would be pleased to answer any questions that you might have. 

[The prepared statement of Mr. Massanari follows:]


E:\HR\OC\D410A.XXX
21

Statement of Larry G. Massanari, Acting Commissioner, Social Security 

Administration 

Mr. Chairman, Mr. Matsui, and Members of the Subcommittee: 

Thank you for the opportunity to discuss the Social Security Administration’s 

(SSA) response to the terrorist attacks on our country on September 11. We, along 

with the rest of the nation, were deeply affected by the tragic events that occurred 

in New York, at the Pentagon, and in Pennsylvania. However, in the best tradition 

of public service, SSA responded immediately to meet the needs of the families who 

lost a loved one in these tragedies. Today, I will describe what we have done to assist the families, how we are handling their claims for benefits, and what measures 

we have taken to ensure that the American people will continue to receive the services and cash benefits they need in a timely and compassionate way. In addition, 

in the wake of the incidents of bioterrorism, I will discuss what SSA is doing to protect our employees and the people who visit our offices. 

Before I begin, however, I want to acknowledge the dedicated service of the two 

Regional Commissioners (RC) who have accompanied me here today. To my right 

is Bea Disman, the RC for the New York Region, and to my left is Laurie Watkins, 

the Acting RC for the Philadelphia Region. Ms. Disman led our efforts to provide 

service to the citizens of New York, and Ms. Watkins directed our activities in providing benefits to the survivors of the victims of the attack on the Pentagon. I believe both of them reflect the highest ideals and the finest traditions of our Agency 

in making real our common goal of providing prompt and caring service to those 

affected by these acts of terror. 

I also want to recognize the remarkable efforts of SSA’s employees, particularly 

those in the New York and Philadelphia Regions. Although many employees were 

themselves affected by the events of September 11, and some were physically close 

enough to the sites to witness the events as they unfolded, virtually all of them were 

on duty the next day. They set aside any personal concerns, because they recognized 

the importance of what they do for the American people. And they handled the difficult and delicate task of working with the survivors to provide the support needed 

to help them obtain benefits with sensitivity and speed. 

Mr. Chairman, I have had the opportunity to visit the Family Assistance Centers 

in New York City and in Crystal City, Virginia where SSA staffs have worked long 

hours to provide information and take claims. While at the Pentagon site, the Director of the Center, U.S. Army Lieutenant General John Van Alstyne said that ‘‘SSA 

employees are truly professionals with a heart.’’ And I couldn’t agree more. As I 

share with you today SSA’s response to the disastrous events of September 11, I 

also share with you my pride in SSA’s workforce. They have risen to a challenge 

no one could have anticipated with an extraordinary sense of commitment and compassion. 

Supporting the Families

Following the attacks, SSA immediately invoked special emergency procedures to 

ensure that survivor claims for the families of those killed in the World Trade Center, the Pentagon, and the plane crash in Pennsylvania could be taken and paid as 

quickly as possible. These procedures include, for example, allowing payment of survivors’ claims with proof of death other than a death certificate (for example, airline 

manifests and employer records). Using these procedures, we can take and pay a 

claim as quickly as possible. 

As soon as employers were able to arrange locations to meet with the families of 

victims, which happened in the first days following the tragedy, our New York Regional personnel were on-site working with employers and families to take and expedite claims. When the Family Assistance Centers were established at Pier 94 and 

Liberty State Park, we became part of that effort. We also worked closely with the 

New York Police Department, the Fire Department, and the Port Authority to take 

claims for the survivors of their employees who were killed. We were on-site at the 

Pentagon Family Assistance Center as well, working side by side with Department 

of Defense personnel to handle survivor claims there. 

In addition to those sites, survivor and disability claims are being taken at a number of other locations. These include our field offices, our toll-free 800 number, as 

well as Federal Emergency Management Agency locations, hospitals, facilities set up 

by large corporations, and even local Congressional offices. 

The human toll of this tragedy is staggering. At this time, the number of disasterrelated claims has risen to over 4,000 claims. Over half of those are for children who 

lost parents in the attacks. We have also taken a small number of disability claims 

(about 50) although we expect that number to increase over time. Unfortunately, we 


E:\HR\OC\D410A.XXX
22

don’t really know what the total number of claims arising from the September 11 

assaults will be. 

In Virginia, we have now taken claims or determined eligibility for all of the families of the 125 victims who worked for the Department of Defense, and for 53 of 

the 64 passengers on the American Airlines flight that crashed into the Pentagon. 

Finally, we are working closely with both United and American Airlines. The information they can provide us is invaluable as we search to locate people who may 

be eligible for benefits. In addition, SSA staff attended a gathering at the site of 

the Western Pennsylvania crash to provide information to the family members who 

were there about how to apply for benefits. 

In response to calls coming into our national 800 number, representatives are referring all disaster-related claims calls to our Immediate Claims Taking Units 

where benefit applications are taken immediately. These units represent a nationwide network of 14 claims processing units, staffed with 390 claims takers. 

Outreach Efforts

Within days, we also launched an extraordinary, full-scale outreach effort to make 

sure that no family eligible for benefits is overlooked. 

We quickly put in place a special web page with information for those affected 

by the September 11 disaster to use. The site has information about how to apply 

for survivor benefits, as well as information about disability benefits. It displays the 

800 number and has a link to SSA’s office locator to assist persons who need to file 

a claim. It also reassures people that benefits will continue to be paid on time. 

By the Sunday following the attacks, we had public information spots on every 

major network affiliate in New York City, the local television stations, and Spanish 

language stations. These spots included information on survivor benefits and how 

to contact Social Security. 

We have worked with hospitals in the New York and Washington D.C. areas to 

identify potential claimants for disability benefits. The New York City Labor Council is working with us to provide outreach to union members and their families. 

We are also working closely with the union, which represents the restaurant 

workers in the World Trade Center. The union will supply SSA with acceptable evidence of identity for enumeration purposes. This will enable U.S. citizens to obtain 

replacement Social Security cards, which they will need to apply for unemployment 

benefits. 

To make sure that those foreign survivors who might be eligible for Social Security benefits are contacted, the Regional Office has done outreach to about 60 consulates. 

We matched lists of employees for those companies that had been located in the 

World Trade Center. We are also working with those employers who were the most 

severely impacted, such as the Fire Department, the Port Authority, and several financial service corporations. We have contacted all of the individuals or families referred by these employers. 

Finally, press releases and fact sheets have been and will continue to be distributed, as necessary, to national media outlets, advocacy organizations, and others. 

We are also providing frequent updates to Congressional delegations from the five 

affected States. 

Social Security Remained Open for Business

In the aftermath of the attacks, SSA took immediate steps to ensure that we 

stayed open for business, for routine business as well as for those who lost family 

members or were injured that day. All Social Security offices in New York City and 

the Washington D.C. area were immediately closed on September 11 to protect both 

the public and our employees, while SSA assessed the severity of the situation and 

the need for increased security. 

The next day, all Social Security offices and the national 800 number were open, 

with the exception of field offices in New York City, the Northeastern Program Service Center in Jamaica, and the hearing office and the Disability Determination Services (DDS) office in lower Manhattan. The New York Regional Office also remained 

closed, but we opened a command center in the Grand Central field office. All of 

our offices—except for those in lower Manhattan—reopened on September 13. We 

redeployed employees from the closed offices to offices that were open. 

We immediately worked with the Treasury Department and the Postal Service to 

make sure that, where normal processes remained in place, benefit checks and electronic funds transfer payments continued to be sent. Where service was disrupted, 

we tried to find ways to mitigate delays. 

We also recognized that our employees themselves were experiencing a wide 

range of emotions in dealing with the tragedies. Because of these concerns, we proVerDate Jan 17 2002 05:44 Feb 20, 2002 Jkt 077410 PO 00000 Frm 00026 Fmt 6633 Sfmt 6621 E:\HR\OC\D410A.XXX pfrm03 PsN: D410A

E:\HR\OC\D410A.XXX
23

vided and will continue to provide counseling for both individuals and small groups 

of employees. We also offered our counseling services to employees in other Federal 

agencies. 

By September 24, all of our offices were open, with the exception of the Manhattan DDS, which had been located near the World Trade Center. Some of the DDS 

staff is being temporarily housed in the Northeastern Program Service Center in Jamaica. Others have been sent to work in other offices. 

All 15,000 claims that had been pending in the DDS were removed from the building and sent to a contractor for cleaning and decontamination. All cases have been 

cleaned and sent back to the DDS. The DDS personnel are in the process of recontacting claimants to update the medical evidence and explain the delay in processing. 

We have deferred some workloads that are not time sensitive to focus on serving 

the needs of victims and survivors. We have also temporarily suspended collection 

and recovery of overpayments where the responsible party is under a hardship resulting from the terrorist attacks. 

As for the security of our facilities across the country, we have supplemented existing security at our large sites by screening visitors, contractors, and non-employees more thoroughly and increasing inspections of packages, delivery vehicles, transit buses, and all vehicles entering areas under buildings. We have placed guards 

in the 322 field offices that did not have them, and will keep them in place for at 

least the remainder of the fiscal year. 

Protecting Against Biological Threats

In this time of heightened concern about possible biological threats, both public 

and private organizations are treating suspicious mail seriously. The health and 

safety of all of our employees and the people who visit our offices is our utmost concern, and we will do everything possible to protect them. Every report of suspicious 

mail has been and will continue to be taken seriously and investigated thoroughly. 

First, let me assure you that presently we have had no known cases of anthrax 

in the SSA community. Our employees in the Washington D.C. area have already 

been referred for treatment in accordance with instructions from the Centers for 

Disease Control and Prevention (CDC). We are also doing environmental testing of 

our mailrooms in the New Jersey, Baltimore, and Washington, D. C. areas that may 

have received mail, either directly or indirectly, from either the Brentwood, D. C. 

or Hamilton, New Jersey, U.S. Postal Service mail processing facilities, to ensure 

they aren’t contaminated. Employees in these SSA facilities are being referred for 

treatment in accordance with the CDC protocol. 

We have had some incidents involving suspicious envelopes or packages in our 

field offices around the country. We have had to close some of our offices for a day 

or two while testing was done. We have also temporarily evacuated other offices for 

an hour or so. Thankfully, all of these suspected threats to public safety to date 

have proven to be unfounded. 

We are working with the CDC and other Federal and State agencies to make sure 

all necessary actions are taken. To make our employees aware of what to do if they 

see a suspicious letter or package, we have distributed posters displaying instructions throughout our facilities. We also sent several advisories to SSA supervisors 

and staff that describe emergency procedures to follow if contamination is suspected. 

We conducted a live interactive broadcast with SSA security and medical staff that 

included questions and answers about anthrax, and have made the videotape of the 

broadcast available to all SSA employees. 

I want to assure you that we are committed to doing everything possible to protect SSA staff and the American people who we serve. 

Social Security Number Safeguards

Mr. Chairman, I would also like to discuss an issue that deeply disturbs all of 

us at the Social Security Administration. There are indications that some of the terrorists had Social Security numbers and cards, which may have been fraudulently 

obtained. As soon as we learned of this, we formed a high-level response team, 

which includes participation from our Office of the Inspector General (IG), and from 

the New York and San Francisco Regions. The response team is reexamining our 

enumeration process to determine what changes we need to make in our policies 

and procedures to ensure that we are taking all necessary precautions to prevent 

those with criminal intent from using Social Security numbers and cards to advance 

their operations. 

The response team is also reviewing the recommendations the Inspector General 

has made over the last five years with respect to enumeration. They are also looking 

at several initiatives that SSA already had underway to identify those that can be 


E:\HR\OC\D410A.XXX
24

accelerated. I have received the first of the response team’s recommendations and 

I am considering their suggestions. They are just the beginning of our efforts to 

strengthen the process. 

In addition, we are taking the lead to form an interagency task force with the 

Immigration and Naturalization Service and the Department of State to accelerate 

an initiative which we have long supported to enumerate people as they enter the 

country. I have contacted both agencies to begin to set up meetings for the task 

force. 

I would like to point out, however, that based on information from the Department of Justice, it appears that as many as 13 of the 19 terrorists, who were on 

the planes on September 11, were in this country legally. Depending upon what 

their entrance status was with the INS, they could have been eligible to receive a 

Social Security number. 

Mr. Chairman, over the last few years we have made changes to our Social Security number process to improve our security procedures. Those changes sought to 

strike a delicate balance between measures to ensure the integrity and security of 

the enumeration process and a desire to get a number issued to the applicant as 

quickly as possible. But we all know that the world changed on September 11, and 

we need to reassess that balance between customer service and security. 

That brings me to your bill, Mr. Chairman, H.R. 2036, the Social Security Number Privacy and Identity Theft Prevention Act of 2001, which you have developed 

over the last few years, with Mr. Matsui and other members of the Subcommittee 

who have cosponsored the legislation. This Administration supports the goals of 

your legislation to enhance privacy protections for individuals and to prevent the 

fraudulent misuse of the Social Security number, and we look forward to working 

with you and the Subcommittee members to best achieve those goals. 

Finally, with respect to this subject, I would also like to acknowledge and thank 

SSA’s Office of the Inspector General for the very significant role they have played 

in the investigation of the events of September 11. Our OIG is coordinating activities with SSA components, working with the Federal Bureau of Investigation, participating in the Joint Terrorism Task Forces, and working with other Federal law 

enforcement agencies. In addition, their hard work and unique knowledge in the 

area of Social Security number misuse has been invaluable to SSA. I am confident 

that through their ongoing work and participation in the response team, we will be 

able to strengthen our safeguards to assure that only those individuals who by law 

are entitled to Social Security numbers and cards receive them. 

Necessary Resources

Obviously, SSA has moved swiftly to implement all the emergency measures I 

have described knowing that additional resources will be needed to process thousands of new and unanticipated claims, increase security, and redeploy staff. There 

are also costs associated with redeveloping claims and replacing facilities, equipment, and computer systems that were damaged. We also know that we will need 

to provide the Office of the Inspector General with the additional resources they will 

need to support their investigative efforts. 

It is still too early to estimate the full impact of our response to this tragedy. And, 

indeed, our first actions have been to address the needs of the survivors and injured 

in every way possible. However, President Bush has proposed a $20 billion emergency spending measure to provide for disaster recovery and security needs related 

to the attack on America, and SSA is to receive $7.5 million of that request. 

Conclusion

In conclusion, Mr. Chairman, SSA has long sought to educate the public that Social Security is far more than a retirement security program. Sadly, nothing has 

brought home that message quite as vividly as the tragedy of September 11. In September, a husband in New York City whose wife had been killed at the World Trade 

Center was ready to sell his home, because he, as a stay at home father, could not 

afford to keep it. He was able to take it off the market after a Social Security representative contacted him to let him know that he and his family were eligible for 

survivor benefits. All of SSA mourns with this man and with the rest of the country. 

We remain fully committed to doing whatever we can to help the families of the 

victims

am wondering, Ms. Disman, how are you holding up? How are your 

Chairman S

I would like to first of all address a question to Ms. Disman. I 

’ recover from this heinous act of terror.

HAW. Thank you, Mr. Commissioner. 

f


E:\HR\OC\D410A.XXX
25

employees holding up? How overwhelming is the caseload at this 

time? I am very impressed with the speed with which you have 

gone forward in processing these claims. So why don’t you give us 

the inside story. 

Ms. DISMAN. I think the inside story is that I am so proud of the 

Social Security employees in the New York Region. They were incredible given what they had to deal with because I don’t know if 

you know, Mr. Chairman, a number of my employees are at 26 

Federal Plaza within ear-shot of the World Trade Center. They actually saw the planes coming in. So we had a real emergency and 

an emotional situation to deal with at all the Social Security offices, as well as the New York DDS, Disability Determination Service, that was in Lower Manhattan. 

But I will tell you right now that working with the victims’ families has for the Social Security employees been one of the largest 

rewarding efforts of their careers and life. We were on site within 

3 days with all the large employers, and my employees volunteered 

to work 12, 15 hours to be there. We were there within 3 days, and 

I will tell you—and I was with them—of the impact of talking to 

some of the widows—and at that point they weren’t really 

classifying themselves as widows, but seeing a mother whose husband’s first day of work was on Tuesday at one of the large employers, and she had a 14-month-old son with her, and she was pregnant. And she looked at us, Mr. Chairman, and said, ‘‘You are the 

U.S. government. You are here for us.’’ That was all that our employees needed, and that is what has kept them going. 

Of course, I provided counseling services for all the employees because I had to make sure that their emotional state was stable, because of the experience, before we even brought them back into 26 

Federal Plaza and to the offices there. We had private counseling 

services for groups as well as individuals, and we have extended 

the contracts so that people could continue. Because, you know, 

with depression and some of the side effects, it comes much later. 

Also, we had that incredible situation of 15,000 disability folders 

that were sitting right at the edge of the World Trade Center for 

our DDS, and we needed to ensure, first of all, that 350 employees 

got out and were safe, and then we had to get the folders. And I 

think you know, Mr. Chairman, we have the folders. 

So how are we faring? I think if you look, communications are 

back, although not wonderful. Security is there. I chair the Federal 

Executive Board, so I am very concerned with security for the 

whole Federal complex and have worked with the General Services 

Administration, not only for Social Security but for all Federal 

agencies. Helping the victims’ families has provided incredible stories. I remain concerned for the emotional stability of my employees, and we are constantly working on it, and certainly the anthrax 

scares in New Jersey and New York have additional impact. And, 

finally, working on all those disability cases and making sure that 

individuals that are vulnerable with disability are treated fairly 

and get their cases processed. That has been the focus of our attention. 

Chairman SHAW. How many caseworkers do you have that are 

actively working on cases resulting from September 11? 


E:\HR\OC\D410A.XXX
26

Ms. DISMAN. I have 206 employees that have been actively involved, not including the DDS, in helping the victims’ families. And 

as a matter of fact, the Acting Commissioner will join me on the 

13th to recognize all of these employees. They have been both at 

New Jersey—because we can’t forget the State of New Jersey, 

which is within my region, as well as in New York. And these have 

been incredible, dedicated people, and we will celebrate with them. 

Chairman SHAW. I, as others, have gone to ground zero and observed the tremendous amount of work, the dedication of public 

servants, not only from New York but from around the country who 

have come to New York’s aid. And I was very impressed as to the 

strength of the New Yorkers. 

You know, I have often thought that we don’t understand how 

they think, the terrorists. But I don’t think they understand how 

we think, either. And it certainly has brought out an inner 

strength, and the New Yorkers are really to be complimented. 

I was joking with Charlie Rangel the other day. I said, you know, 

after seeing this, I am beginning to really love New Yorkers. 

Ms. DISMAN. Thank you, Mr. Chairman. 

Chairman SHAW. So we are very impressed. This whole country 

is very impressed at the job you have done. And I don’t think that 

people really realize how many of you that are behind the scenes. 

We see the firemen and the rescue workers and the police climbing 

on the ruins of the World Trade Center. But the people that are 

in the offices making the system work and caring for the victims 

is a tremendous important part of what you do. 

Ms. Watkins, what are your observations? This would be in the 

Pennsylvania area, in Philadelphia? 

Ms. WATKINS. That is correct. 

Chairman SHAW. And the Pentagon, too. 

Ms. WATKINS. Most of our efforts were centered at the Pentagon 

Family Assistance Center and the victims of the Pentagon attack. 

My observations are very similar to Ms. Disman’s, although they 

were necessarily of a more limited scope. But my employees found 

the entire experience to be much the same as Ms. Disman described in terms of incredibly rewarding. They remained committed 

throughout the process. They felt very, very good to be able to do 

something. I think all Americans probably experienced that kind of 

feeling after September 11. 

I am incredibly proud of the employees of the Philadelphia Region and the way they handled the very delicate work that was 

necessary to deal with the survivors. So I think they have done a 

tremendous job, and I think they are holding up very well. Thank 

you very much. 

Chairman SHAW. How is the emotional stability of the workers? 

It has got to be a very depressing situation to be facing the people 

who have firsthand—the family Members or survivors who have 

suffered such an awful tragedy. 

Ms. WATKINS. Well, I think all of our employees at times have 

been somber, but at the same time, I think Social Security employees routinely do work that involves dealing with people who have 

faced significant life events such as the loss of a spouse. So I do 

think that this was something unprecedented and requires an extraordinary level of sensitivity because there were emotions, as you 


E:\HR\OC\D410A.XXX
27

note, running for both the people that we were dealing with and 

the employees that were serving them. But I think they rose to the 

occasion. 

Chairman SHAW. Mr. Massanari, my last question will be directed to you. How are we as far as the allocation of resources to 

be sure that we are giving the people the service that they so desperately need? 

Mr. MASSANARI. Mr. Chairman, our original estimates, as we assessed the situation shortly after September 11, were that we 

would need something in the neighborhood of $40 million to provide adequate security, to process the additional claims, and to support the restoration of operations in New York, particularly the 

New York DDS in Lower Manhattan. Actually, that original $40 

million estimate has really held up. It has been somewhat fluid, in 

some areas a little more, in some areas a little bit less, but it is 

still in the neighborhood of $40 million. We also estimated that we would need around $7 million in order 

to strengthen the investigative capacity of the Office of the Inspector General. We think it is very important that we enhance their 

capability to deal with Social Security number misuse. So our estimates were in the neighborhood of $40 million. 

As you know, the President has submitted for congressional ap- proval a request for the second $20 billion as a part of the emergency relief package. Included in that $20 billion package is $7.5 

million for Social Security. 

Chairman SHAW. And this is adequate to take care of the caseload we have? 

Mr. MASSANARI. It does not approach, of course, the $40 million 

estimate that we had made; however, we will do everything we 

need to do to divert funds from other sources in order to meet these 

needs. We are going to do whatever it takes to provide the necessary security for employees, to process these claims, and, of 

course, to restore operations in New York. 

Chairman SHAW. Thank you. 

Mr. Matsui. 

Mr. MATSUI. Thank you very much, Mr. Chairman. I would like 

to thank Ms. Disman and Ms. Watkins as well for their testimony. 

I appreciate the fact that you asked them the questions you did. 

I think it was very critical and very important. 

Ms. Disman, I might just point out that Mr. Rangel also talked 

with me. I ran into him today at a meeting, and for those of you 

who don’t know Charlie Rangel, a Member of Congress, he is from 

New York and he has been here probably for 30 years. 

Chairman SHAW. If you have met Charlie, you know he is from 

New York. 

Mr. MATSUI. New York, right. He said, ‘‘Aren’t we great?’’ And 

I thought he was for some reason connecting it to this hearing, because I knew you were coming this morning. And he was talking 

about how New York beat Arizona last night. 

[Laughter.] 

Mr. HAYWORTH. Would the gentleman yield? 

Mr. MATSUI. And I am sure you are happy about that as well. 

[Laughter.] 

Mr. MATSUI. I didn’t want to look that way, I am sorry to say. 


E:\HR\OC\D410A.XXX
28

Mr. HAYWORTH. Here we are having a nice hearing. It is tough 

enough. 

Mr. MATSUI. Well, at least it is bipartisan. But, again, I want to 

thank you. 

If I may just, Mr. Massanari, ask you about the funding situation, you mentioned four or five different areas that you are going 

to have to augment, and that would constitute the $40 million. 

How long do you think that would take? Over what period of time 

are we looking at the expenditures of the $40-plus to $70 million, 

do you believe? 

Mr. MASSANARI. It, of course, depends upon the area of spending, Mr. Matsui. In terms of the added security, about $20 million of 

that is for additional guard service in those 322 offices I mentioned 

in my testimony. We are going to provide that guard service for the 

balance of this fiscal year. 

For the claims-taking operation, it is a little tough to estimate 

how much longer that might run. After last Sunday’s memorial 

service at ground zero, the claims-taking activity has picked up. 

But I would think over the next several weeks most of the claims 

will have been taken. 

The restoration operations for the New York DDS, which includes not only site preparation for what will likely have to be new 

space, it also includes computer equipment, furniture, supplies. We 

are talking many, many months into the future. 

Mr. MATSUI. And so you believe that the—I guess the security is 

probably a large part of this, though. Is that right? Do you have 

an idea what that might be at this moment? 

Mr. MASSANARI. The security cost will be around $20 million for 

guard service. 

Mr. MATSUI. Oh, so that will be about half the cost. 

Mr. MASSANARI. Yes. 

Mr. MATSUI. Over the next 12 months, I would assume. 

Mr. MASSANARI. Yes. 

Mr. MATSUI. OK. 

Mr. MASSANARI. Now, in addition to that—and this has not been 

factored into that $40 million—with all of the activity around hazardous substances and the anthrax scares, we have had some instances where we have had to either evacuate offices or even close 

offices for a short period of time. Thankfully, all of those incidents 

have been unfounded. There has been no contamination. But it has 

been disruptive to our operations, and it is going to begin to take 

its toll, I fear, on our productivity. So there will be some added cost 

associated with that. 

Mr. MATSUI. I wanted to get into the anthrax issue, and I want 

to be somewhat careful because just talking about it could create 

uncertainty, and we obviously don’t want to do that. But obviously 

you are aware of it, and all of the different regional offices throughout the country are now on alert on it. And because much of the 

processing is through the mail, I would imagine you do have a 

mechanism set up even, for example, in the Fresno office and elsewhere throughout the United States where the employees are 

watching this very carefully. Is that correct? And do you think this 

will go on a long period of time, a permanent situation? And will 

there be additional costs in that over a period of time? 


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Mr. MASSANARI. Well, let me describe, Mr. Matsui, what we have 

done. Actually, we became involved in this very early, actually 2 

weeks ago, because we had a number of our staff who had delivered mail and were in the Hart Building. So we began to take steps 

immediately to deal with the threat of anthrax. 

We have been working very closely with the Centers for Disease 

Control and Prevention (CDC) and with other Federal and even 

local health agencies. We have issued information through bulletins and also through interactive videos to all of our offices. We 

have issued instructions and guidance to our managers so that all 

employees are being alerted and know what to look for in terms of 

suspicious envelopes or suspicious packages. 

In addition to that, we have provided gloves and masks to employees, for any who might choose to use them. We are also taking 

precautionary steps in those facilities that receive mail directly 

from either Brentwood here in D.C. or from Hamilton Township in 

New Jersey or Morgan in New York City. 

We are actually going to be undertaking precautionary environmental sweeps and offering folks in those mail rooms the opportunity to be evaluated by local public health facilities. And, again, 

it is hard to predict how long this might last, but certainly we are 

trying to raise sensitivity and consciousness among our employees 

so that they will remain cautious and alert well into the future. 

Mr. MATSUI. And, last, you obviously have electronic deposit capability, and obviously that is a savings to the Social Security Administration, and probably a convenience also to the recipient. And 

I do know there have been some stories on this in the newspapers. 

Is there a way—are you working on trying to get the word perhaps 

further out on that now? Because it may be a good opportunity to 

convince people that they ought to consider that as a way to get 

their check, at the same time having to avoid all the paper problems. 

Mr. MASSANARI. Yes, our press office has been very aggressive in 

this area. In fact, we had a wire story, an AP wire story, that was 

released early Monday morning, and we are going to continue to 

deal with this issue in that context, because there is concern expressed by beneficiaries about receiving paper checks. So we are 

using this as an opportunity to encourage them to avail themselves 

of direct deposit. 

Mr. MATSUI. And then the amount of requests coming in on disability requests, applications for disability benefits, I would imagine all those are being processed on a timely basis. Obviously with 

this situation it could create some concern and some problems, and 

I am just wondering how that is——

Mr. MASSANARI. The disability claims associated with the attacks 

or——

Mr. MATSUI. Well, no. This would be generally. I mean, as the 

mail comes in——

Mr. MASSANARI. I see what you are saying. 

Mr. MATSUI. The concern of obviously the employees, the legitimate concern. 

Mr. MASSANARI. It is a concern. In terms of so much of the documentation going through the mail, there is a real concern about 

delays in the process, which continues to push us toward ultiVerDate Jan 17 2002 05:44 Feb 20, 2002 Jkt 077410 PO 00000 Frm 00033 Fmt 6633 Sfmt 6602 E:\HR\OC\D410A.XXX pfrm03 PsN: D410A

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mately an electronic process. But that is an issue, and I would suspect that there will be some delays in processing, particularly as 

mail gets hung up in those mail processing facilities that are being 

closed for environmental testing. 

Mr. MATSUI. Well, I want to thank all three of you very much 

for your testimony and obviously for the work you have been doing 

on behalf of the country and the American people. I really appreciate it. And I would like to just point out I appreciate the comment you made, Mr. Massanari, in your opening statement when 

you talked about the disability benefits and survivors’ benefits 

issue. It is so critical to the average American family. 

I didn’t realize this until about 3 or 4 years ago when I really 

got into this whole issue of Social Security that 28 to 30 percent 

of all benefits paid out are in the form of disability or survivors’

benefits, and it is just an astonishing number. We really appreciate 

all you have done. I think you have given a lot of security through 

very difficult times for all of us. 

Thank you. 

Mr. MASSANARI. Thank you, Mr. Matsui. 

Chairman SHAW. Mr. Matsui, there is no question that Social Security is a lifeline for so many people today because of this unexpected, horrible tragedy. 

Mr. Hayworth, you may have the final word with regard to last 

night’s baseball game. 

[Laughter.] 

Mr. HAYWORTH. Well, you know, Mr. Chairman, I was so pleased 

to hear my friend from California speak about the Ranking Member of the full Committee and the delightful time he had. I was 

having a delightful time until there were two outs at the bottom 

of the ninth inning. I guess it just simply goes to say that in the 

words of the book title, the great Arizona resident, Joe Garagiola, 

‘‘Baseball is a funny game.’’ We will see who the last laugh is on 

as the series continues. But right now I think there have been 

some chuckles at our expense. 

Be that as it may, aren’t we fortunate that we are able, even in 

the midst of rebounding off this trauma, to see that type of endeavor. It truly proves that baseball is our National pastime, and I welcome all of you today, World Series results notwithstanding. 

Chairman SHAW. Perhaps I should identify you as the gentleman 

from Arizona. 

[Laughter.] 

Mr. HAYWORTH. That might be good. I can see now the live coverage they have to put up little explanatory notes here: The Congressman is from Arizona, that is why he has tears down his 

cheeks. 

[Laughter.] 

Mr. HAYWORTH. As they sometimes very helpfully do in the live 

coverage and the tape coverage offered by C–SPAN. 

As we turn to this very serious topic, Mr. Acting Commissioner, 

I appreciate your testimony. There are obviously so many different 

issues to deal with right now. 

But at the root of that event, as investigators point out, as you 

point out in your testimony, there are indications that some of the 


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31

terrorists had Social Security numbers and cards, and you offered 

the phrase, ‘‘which may have been fraudulently obtained.’’ Dealing with this whole matter of Social Security fraud, so many 

different ideas have been proffered. We have heard some talk 

about, with the technology that may be at our disposal today, engineering or coming up with some sort of fraud-proof card. Does that 

warrant consideration in your mind? Is that a strategy that should 

be pursued by the Social Security Administration? And are there 

any, pardon the pun, ballpark figures as to what a fraud-proof card 

might cost? 

Mr. MASSANARI. Well, I am not sure there is an absolutely fraudproof card, Mr. Hayworth, but certainly there are more counterfeitresistant approaches that might be pursued. There are with the 

current card, of course, a number of counterfeit resistant features. 

But back in 1997, at the request of the Congress, we did submit 

a report based upon an extensive study that we did looking at a 

number of options for enhancing the Social Security card to make 

it more tamper—or counterfeit-resistant. Those options ranged 

from a plastic card with the card holder’s picture on it at sort of 

the low end, all the way out to a card that would have a memory 

chip or a magnetic strip on it that might include information regarding citizenship or lawful alien status. It might even include biometric data. 

The cost associated with that back in 1997—and I suspect those 

estimates are probably still pretty solid, but they ranged anywhere 

from $4 billion to $10 billion, depending upon which option might 

be pursued. 

The work-year costs associated with that—and also, at the request of the Congress, we structured these estimates around reenumerating 280 million Americans over a 3-year period, over a 5-

year period, and over a 10-year period. And the estimate for any 

of those options over the period of time that we would re-enumerate was 70,000 work-years, and, of course, that is a major portion of that range of $4 to $10 billion. 

It is something that can be done. It is technically possible. But 

it is also very costly. 

Mr. HAYWORTH. To return to your testimony about the terrorists, 

it says in the testimony, ‘‘Some of the terrorists may have had Social Security cards.’’ Can you share with the Subcommittee, do we 

know that more definitively now? Do we know with certainty that 

some of the perpetrators of these horrible acts, in fact, had Social 

Security cards? 

Mr. MASSANARI. I think we do know that. I would prefer to defer 

to my colleague, Inspector General Huse, who has been so much a 

part of this investigation. There is some indication, publicly announced by the U.S. Department of Justice, that in at least 13 of 

the 19 cases, the individuals may have been here lawfully and may 

have appropriately had Social Security numbers. But I think Mr. 

Huse is in a better position to talk about those instances in which 

some of those individuals may have gotten numbers based upon 

fraudulent documents. It is a part of the investigation, of course. 

Mr. HAYWORTH. Thank you very much, and I look forward to 

hearing from the Inspector General. And, again, I want to thank 

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dinary times. And as we have seen so often with many Americans 

in many different walks of life, we are called upon to do extraordinary things, and we appreciate the efforts you are making that 

can be described as heroic to make sure that the Social Security 

Administration continues to serve the American people. 

Thank you very much. 

Mr. MASSANARI. Thank you, Mr. Hayworth. 

Mr. HAYWORTH. Thank you, Mr. Chairman. 

Chairman SHAW. Thank you, J.D. 

Mr. Becerra. 

Mr. BECERRA. Mr. Chairman, thank you very much, and to you 

first and foremost, thank you very much for convening this hearing 

and for working in such a bipartisan fashion to try to move us forward on some of these issues. 

Commissioner Massanari, thank you very much for all of your 

testimony to date. Hopefully we can satisfy you at some point pretty soon and let you move on to other endeavors in life. 

Mr. MASSANARI. Thank you, Mr. Becerra. 

Mr. BECERRA. And, Ms. Disman and Ms. Watkins, thank you so 

very much for being here. You are probably much more needed in 

your particular offices, but we thank you very much for your testimony and for all the work. And please convey to all those people 

who day in and day out have been doing this kind of work, thank 

you, after September 11, but also thank you for everything they did 

before September 11. If your folks are anything like the folks that 

we have had a chance to work with in my office in Los Angeles, 

with the Social Security office in Los Angeles, then you have got 

some great folks. 

By the way, I want to also compliment you in doing your PSAs, 

Public Service Announcements, your outreach. That is so essential 

to do that early on. And the fact that you also reached out in Spanish I think was so essential because you don’t want to see people 

losing out on an opportunity to pick themselves up as quickly as 

possible. So I compliment you on that. 

The estimates, Mr. Massanari, that you just gave, can you give 

us a sense—now that you have updated your numbers, have you 

submitted a request to OMB, Office of Management and Budget, to 

try to deal with the larger figure? I think you said $40 million for 

additional security and processing of claims, $7 million more—what 

was the $7 million more for? 

Mr. MASSANARI. The Office of the Inspector General. 

Mr. BECERRA. Inspector General expenses. Have you conveyed 

that to the Office of Management and Budget and the White House 

so they can revise their $7.5 million request to the Congress? 

Mr. MASSANARI. Yes, that was a part of our request, and obviously, as you well know, Mr. Becerra, there are a lot of significant 

needs associated with that relief package. And the administration 

had to sort out and make difficult choices among those very significant priorities. And the decision was that $7.5 million would be included for SSA. 

Mr. BECERRA. And I think we are going to find, as we continue 

to have hearings on the Hill, that the administration will have to 

come to us and probably request additional funding for the different work that all the different government agencies will have to 


E:\HR\OC\D410A.XXX
33

make, not least of which is, of course, the U.S. Department of Defense, to carry on its efforts. So I think a number of us, if not all 

of us on this Committee, would be more than willing to try to work 

with you to make sure that we can help the administration find the 

dollars that it will take to keep you up and running. How long can you go on the additional $7.5 million, should that 

be the amount that is appropriated, for you to continue to do the 

work that is needed as a result of September 11? 

Mr. MASSANARI. Well, of the $7.5 million, about $5 million of that 

would be devoted to infrastructure support in New York for the disability determination unit in New York to restore operations, and 

about $2.5 million would be for security. 

We will continue to operate. We will divert funds from other 

areas to be sure that all of the needs associated with the aftermath 

of the attacks are covered. There are some costs, however. And the 

impact, of course, of diverting funds is that it will have some effect 

on processing work. 

Mr. BECERRA. Does that mean that recipients, whether they are 

retired, whether they are disabled, or whether they are the survivors of deceased who, not as a consequence of September 11, may 

find that the processing of their claims may be delayed? 

Mr. MASSANARI. Yes, that could happen. To give you just an example of what this could mean in terms of diverting funds, about 

$10 million, if you look at it in terms of $10 million increments— and in this case, we are talking a difference of about $33 million. 

But $10 million equates to just over 100 work-years, and with 100 

work-years, we process something in the neighborhood of 13,000 

disability claims. So if you multiply that 13,000 cases times three, 

we are probably talking something around 40,000 disability claims 

that would be delayed because of having to divert funds. That is 

simply an example. The impact could be in another kind of claim. 

But what it will mean is that it would have some impact on case 

processing. 

Mr. BECERRA. Well, let us work with you because I don’t believe 

any of us want to see that occur where, as a result of trying to do 

the good work of providing assistance to the victims of September 

11, that other very needy and those recipients that are expecting 

this assistance will have to suffer the consequences of any delay. 

I want to again just say thank you for that testimony. I hope you 

will let us know if some of these uncertainties of temporary closures of offices, the evacuations, will also increase your costs. So 

you can let us know, and we look forward very much to working 

with all of you as you continue your work. And I think you continue to prove that when it comes to the Social Security Administration and Social Security program, it is and has been the most 

successful Federal government program this country has ever created. And we look forward to working with you to keep on championing that program and make it clear to the American people 

that we are there to help. 

Thank you very much, and thank you, Mr. Chairman. 

Mr. MASSANARI. Thank you, Mr. Becerra. 

Chairman SHAW. There are a couple votes on the floor, but I am 

going to yield to Mr. Lewis before we start to vote. 

Mr. LEWIS. Thank you, Mr. Chairman. 


E:\HR\OC\D410A.XXX
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Mr. Commissioner and Ms. Disman and Ms. Watkins, we certainly appreciate you coming today and giving your testimony and 

certainly appreciate the outstanding job that your team is doing, so 

thank you. 

Mr. Commissioner, going back to the Social Security card and the 

problems with fake cards, how easily is it today for Social Security 

cards to be counterfeited? 

Mr. MASSANARI. I think if you were taking an existing card and 

altering it, it is probably not that easy. It can certainly be done, 

but it is fairly apparent when it is done because of the card stock 

that is used and also what you call intaglio printing. So I think it 

is fairly noticeable; if one looks carefully, you can tell that the card 

has been counterfeited. 

I am probably not in the best position to determine how easy it 

is to buy a fraudulent card on the street, but certainly there are 

examples where that has been done. There is no question of that. 

Mr. LEWIS. Do you have any data on how often it does occur, any 

information? 

Mr. MASSANARI. Where there are counterfeit or fraudulent cards? 

Mr. LEWIS. Yes. 

Mr. MASSANARI. I don’t, no. I think we would not necessarily 

know in how many instances cards have been counterfeited. We 

would be able to identify—I think the Inspector General may have 

some information on those cases where we have identified that 

there is a counterfeit card, where somebody has tried to present a 

fraudulent document, a fraudulent card. But beyond that, I don’t 

have any data, no. 

Mr. LEWIS. OK. I need to ask Mr. Huse some questions a little 

later concerning some concerns that our State may have as far as 

driver’s licenses and Social Security cards. Thank you. 

Mr. MASSANARI. A concern we share, Mr. Lewis. 

Mr. LEWIS. Thank you. 

Chairman SHAW. Mr. Johnson. 

Mr. JOHNSON. Thank you, Mr. Chairman. I am wondering, with 

today’s technology, why you don’t put photos on cards. 

Mr. MASSANARI. On the Social Security card itself? 

Mr. JOHNSON. Yes. 

Mr. MASSANARI. It has largely been a matter of cost. As I had 

mentioned, we did some work back in 1997 and submitted a report 

to the Congress at that time indicating how the card might be enhanced, and that is one possibility. 

One of the reasons, I think, is it is very costly. 

Mr. JOHNSON. We have a license bureau for driver’s licenses all 

over the country that do that. You just walk up, they got your picture on the card. 

Mr. MASSANARI. But if you were to—I think the issue has been 

one of having to re-enumerate people. Probably right now about 

280 million people would have to be re-enumerated. And our estimate was that it would take about 70,000 work-years to do that. 

It can be done, but it—— Mr. JOHNSON. Well, then, how do you determine whether a guy 

has got a card fraudulently or not if you don’t have—I mean, do 

you have to re-enumerate everybody to figure that out? I know in 

your statement you mentioned that you are taking the lead to form 


E:\HR\OC\D410A.XXX
35

an interagency task force with Immigration and Naturalization 

(INS) and the U.S. Department of State to enumerate people as 

they enter the country. Can you explain how that would result in 

a more effective process? And would there be extra requirements 

for an immigrant? 

Mr. MASSANARI. Right now, it is a two-step process where INS 

makes the determination regarding lawful entry and also authorizes an individual to work. And they at INS then issue the appropriate documentation for that individual. Then that individual 

comes to Social Security for a Social Security number, presenting 

the INS document. Where there is a question, we independently 

verify that INS document. 

The idea of—— Mr. JOHNSON. Well, if you independently verify them, how did 

some of those terrorists get cards? 

Mr. MASSANARI. If I might, let me come back to that. The advantage of enumeration at entry is it would be a one-step process, 

where at the time that the information is provided to INS for lawful entry, INS would then electronically transmit that information 

to us, and we would then issue a Social Security card based upon 

the information that INS had gathered and had verified. It would 

be a one-step process. And as long as INS had determined that it 

is the appropriate individual, then we would use that same information to enumerate them. It is faster, it is more secure, and it is 

a far more accurate process. 

Mr. JOHNSON. I agree with you. When do you expect that to be 

implemented? 

Mr. MASSANARI. Well, the first phase of this is supposed to be 

brought up next August. One of the reasons for our wanting to assemble an interagency group is to accelerate that process. We 

would like to see it brought up next spring. 

Mr. JOHNSON. Thank you, Mr. Chairman. Thank you, sir. 

Chairman SHAW. Thank you. 

The Committee will recess. I understand there are probably two 

votes on the floor, one on an appropriations bill and the other on 

approval of the journal. And so we will recess, but we will reconvene immediately following the votes. And I hope the witnesses can 

stay. 

[Recess.] 

Chairman SHAW. We are back in session. 

Mr. Brady. 

Mr. BRADY. You caught me by surprise, Mr. Chairman. 

First, Mr. Commissioner and regional commissioners, thank you. 

I want to echo the praise everyone else has given you today. You 

are doing just a remarkable job, and I am very proud of you all. 

As you know, Mr. Commissioner, you and I are both extremely 

concerned about the backlog of Social Security disability cases 

pending before administrative law judges (ALJs). At last count, it 

was around 430,000 cases. 

You have been extremely responsive and have shown a great 

deal of leadership in working with the Committee to try to alleviate 

that situation, and I am convinced it was your help and leadership 

earlier this year that was vital in getting approximately 120 new 

administrative law judges back into the system. And considering 


E:\HR\OC\D410A.XXX
36

that there were only 900 to 1,000 of them nationwide, these new 

judges will greatly help. 

Given the current backlog of cases you are working so diligently 

on, obviously I think we concerned the impact of a catastrophic 

event could have on a system that is already stretched pretty thin. 

Also, following the 50 people, as you testified, in the New York 

area have filed disability claims, I imagine there will be cases filed 

in the future by workers at the site, by others who were there during that tragedy as a result of breathing all the junk that was in 

the air and some other occurrences. 

And I notice, too, that you felt that needing to divert existing resources to the situation could also delay perhaps as many as 40,000 

current disability cases. 

My question obviously to you is: What can we do together to try 

to bring the number of administrative law judges? I know that we 

need 120 new ones, additional ones, just to come up to the level we 

were in 1998. I know the judges are handling 50 percent more 

cases than they were just 2 years ago. So the number of cases is 

growing, the number of judges has really shrunk, and is now starting to build back up; the time has lengthened, the cases have 

lengthened. What can we do together, this Committee and yourself, 

in trying to obtain more administrative law judges and reduce this 

backlog? 

Mr. MASSANARI. First, Mr. Brady, let me just share with you that 

we did have good news this past month. It was the first month that 

we have actually seen a decline in the number of pending hearings 

before ALJs in a period of almost 18 months. 

Mr. BRADY. Right. 

Mr. MASSANARI. Let me thank you as well for your support and 

interest in this whole area and in working with us to enable us to 

bring in those 120 administrative law judges. 

As you know, there have been some restrictions and limitations 

on hiring ALJs because of a legal proceeding before the Merit System Protection Board (MSPB). I think at this point we would be 

hard-pressed to absorb more administrative law judges into the 

system with the 120 who we now have in training. They, incidentally, began their training a week ago Monday. 

Mr. BRADY. Right. 

Mr. MASSANARI. They will report to their assigned offices on the 

23rd of November, and, of course, during the next 9 to 10 months, 

they will continue their training with mentors in their assigned offices. It takes about that long for an administrative law judge to 

become truly productive. We have established mentoring arrangements with current ALJs. 

We think it would probably stretch us to bring on any more administrative law judges much before the end of this fiscal year. I 

think it bears watching that legal proceeding very closely to see 

where that takes us and then we will need to determine a strategy 

from there. Our hope is that the merits of that case will be dealt 

with in a way that will still enable us to continue hiring ALJs as 

we need them. 

Mr. BRADY. All right. 


E:\HR\OC\D410A.XXX
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Mr. MASSANARI. At this point I am not sure that more action 

needs to be taken until we see where that proceeding before the 

MSPB takes us. 

Mr. BRADY. Well, if you would keep us up to date on that. I know 

your office and mine talk pretty frequently on this issue. And I 

know that more judges aren’t the only answer, but it is a critical 

part of the solution and is an important part of the solution. I 

know, too, that we are working also on programs that create applications early on that are more complete and thorough, where we 

have better training of State examiners so that they hopefully 

make more accurate initial rulings, that we are working on better 

communication with claimants during the process, and I am still 

convinced ultimately that at some point this Committee or Subcommittee is going to need to look at revising our Federal disability 

law that is 30 years old and that appears to me has over the years 

we have had so many conflicting legal rulings and precedents and 

regulation that makes it difficult, I think, for both these examiners 

and these judges to make their decisions. 

So I think there are a number of ways that both we can work 

together and some roles this Committee can play in helping. 

Thank you, Mr. Commissioner. 

Chairman SHAW. Thank you, Mr. Brady. Mr. Cardin. 

Mr. CARDIN. Well, thank you, Mr. Chairman, and let me repeat 

what I think every Member of this Committee has said, but it is 

worth repeating. We want to thank the SSA work force for their 

dedication and public service during these very, very trying times. 

So I hope, Ms. Disman, that you will take that back to the people 

of New York, the workers in New York, and the workers that were 

involved at the Pentagon, and, I must tell you, I think throughout 

the Nation. You are on the frontlines. It is not an easy task today 

to sit in a mail room sorting out the mail that is important for us 

to continue the essential work at SSA. And speaking for myself, 

but also speaking for all my colleagues, we thank you for your public service and the people who are at SSA. 

I want to talk a little bit about what is happening at SSA in Baltimore. We have a lot of workers there. There are a lot of security 

issues. I have had some conversation with the work force. I have 

had some conversation with the local authorities in Baltimore 

County and the State whose resources are also being stretched. 

Every time there is an anthrax concern, it puts additional pressure 

on the Baltimore County Health Department, on the State health 

people, and the other local governments in the region. 

One of the things I would hope that we would be looking into as 

we start to allocate resources for security is the needs of our local 

governments in working with our Federal agencies and dealing 

with the security issues and the public health issues. 

Truly, it is very taxing on the Federal facilities. We are the targets. If you want to try to disrupt our way of life, SSA is a target. 

We know that, and you are taking that very seriously. 

So I guess I would ask you if you would respond as to the cooperation you have had with the local officials in Maryland as well 

as around the rest of the Nation and whether we should be looking 

at a more coordinated strategy on the allocation of resources so 

that we can tie into, as we have, the public health departments of 


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38

local governments and also the ability on environmental assessments to use the State and local resources as well as our own Federal resources. 

Mr. MASSANARI. We have been working cooperatively with folks 

in the State of Maryland as well as in the city of Baltimore. When 

I mentioned earlier some of the things that we were doing in response to the anthrax scares or threats, we have been working at 

the Federal level to arrange of the environmental sweeps. We are 

using private contractors who have been retained by the General 

Services Administration, working closely with the General Services 

Administration and with the CDC. 

But in terms of providing evaluative services, as we have taken 

employees for evaluation and potential prophylactic treatment, we 

have been working with local public health facilities, and they have 

been full cooperative with us and always eager to provide assistance and support. 

Yesterday we took almost 300 employees to those local public 

health facilities. We are taking another 470 today. And they are 

being very helpful to us in terms of evaluating employees and offering employees prophylactic treatment, that is, antibiotics. 

Mr. CARDIN. Thank you for that. Mr. Shaw has been a leader in 

trying to give your agency a little more flexibility on its administrative budget. And I think this crisis points out the need for us to 

be concerned about this in that, Mr. Chairman, it is clear that SSA 

is going to have to draw from other priorities in order to meet the 

current need on security, whether it is just checking the people at 

the perimeter security of your buildings, as well as checking people 

who are coming in, as well as to meet the health needs. And that 

is going to take manpower away from some of the other functions. 

If I understand the math here, if the needs are $20 million and you 

are getting $7.5 million, it is going to take away from the other essential programs of SSA, and we will do that because that is the 

priority. But ultimately we are going to need to come back to these 

other issues, and I think it points out for us to give you the administrative support you need in order to carry out all of your missions 

because they are all very important to the people of our country. 

We talked about the victims, the direct victims of September 11. 

Their claims need to be processed and will be processed, but there 

are other people in the country whose claims also need to be processed, whether it is survivor benefits or disability benefits or receiving their retirement checks. They need that service to be done 

quickly, and they expect it to be done quickly. And it is our responsibility to make sure you have the resources to do it. And I think 

we need to work very closely to make sure those resources are 

made available. 

Thank you, Mr. Chairman. 

Chairman SHAW. Thank you, Mr. Cardin. Mr. Hulshof. 

Mr. HULSHOF. Thank you, Mr. Chairman. I appreciate you convening this hearing, especially I know we had to postpone it from 

a previous date. I think it’s been very enlightening. I appreciate the 

panel being here. 

We have learned a lot today. We have learned from those of you 

particularly responsive at the ground zero level of addressing those 

direct victims and family Members from September 11. We have 


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39

learned, I think, about the safety measures that you have implemented that all of us who work with Social Security Administration employees and their concern about being safe in their offices. 

And I appreciate that. We have talked about resources. 

What I would like to focus on and really pick up is a thread from 

Congresswoman Kelly, who was the first one to appear here today, 

regarding identity theft. Mr. Massanari, as you know, this Committee has looked at this prior to September 11, and I know that 

there are those since September 11 that have proposed a national 

identification card, which at least from my vantage point is not the 

way to go, but that we can certainly have that discussion. 

But as this Committee has looked at and you have talked about 

a little bit some of the identity theft—and I know Congresswoman 

Kelly talked about it—recently we learned of—I won’t ask you to 

comment or verify this, but a man in North Carolina who was recently charged with the crime of attempting to steal the identity 

of someone who was actually killed in the terrorist attack. 

Congresswoman Kelly talks about what she says, and I am not 

going to adopt her terminology, but she calls it ‘‘a government loophole’’ that makes identity theft easier, namely, your Administration, the SSA, not being able to distribute death information more 

timely and suggesting that Social Security numbers be permanently deactivated. 

Let me just ask you that very open-ended question. Is this a good 

idea? Is this feasible? Is it desirable, that is, deactivation of a Social Security number upon death? 

Mr. MASSANARI. We certainly share the concerns of Congresswoman Kelly and the Financial Services Committee. We are doing 

a number of things in that regard. We have begun to explore first 

of all how we can issue the Death Master File electronically. We 

are currently releasing it to the U.S. Department of Commerce, 

who in turn sells it to subscribers in the private sector. We are currently sending tape cartridges via Federal Express, and we are able 

to do that within a week after the close of the month. 

But what we are exploring now with the U.S. Department of 

Commerce’s National Technical Information Service is the electronic transmission of that data rather than sending it via Federal 

Express. 

We are prepared to do that immediately, or as soon as the U.S. 

Department of Commerce is ready to receive it, so we are now in 

discussions with them in that regard. In fact, we transmit that 

Death Master File to the Office of Personnel Management electronically now. We are also looking at ways in which we could release the file and update the file more frequently than monthly, for 

example, every 2 weeks or even weekly. 

In terms of what happens to a Social Security record when we 

receive a report of death, first of all, I think it is important for everyone to understand that we only issue a Social Security number 

once. It is never used again. And once we receive a report of death, 

our records are annotated, they are flagged indicating that the person is deceased, so that any request for information or anyone who 

wants to match against that record knows that that number holder 

is deceased. 


E:\HR\OC\D410A.XXX
40

We maintain that record, however, because earnings during the 

year of death need to be applied to that account. Where earnings 

after the year of death are applied, there is an alert that is generated so an investigation can be undertaken. 

But, in addition to that, that account remains on our records because family members of that card holder, for example, a spouse 

or the widow, could later file for benefits against that account. That 

is why that account needs to remain there. 

But I think it is important to understand that our records are 

annotated and flagged so it is very clear when there is a match 

against that record that the person is deceased. 

Mr. HULSHOF. Again, just a general question. I think now is as 

good a time to ask it in light of what we have been discussing. 

What is the real value of a Social Security card today? In other 

words, as I think my colleague from Arizona talked about, it cannot 

be used to determine the citizenship status. It is not really proof 

of the bearer’s identity. What is the real value of having that actual card? 

Mr. MASSANARI. Well, I think it is very important to distinguish 

between the card and the number. 

Mr. HULSHOF. Right. 

Mr. MASSANARI. It is the number that really has the value, and 

in terms of identity theft, it is the number that is stolen rather 

than the card itself. 

In most instances where you are presenting your number, you 

are not also asked to present your card. So in those instances, the 

card has limited value. It is really the number that needs to be protected. 

Mr. HULSHOF. I appreciate that. Mr. Chairman, my time has expired. I appreciate it. I yield back. 

Chairman SHAW. Yes, sir. Mr. Pomeroy. 

Mr. POMEROY. Thank you, Mr. Chairman. 

First of all, I would like to associate myself with the concerns 

raised by Congressman Hulshof. I think that we are all terribly 

worried about the misuse of these numbers, and your comments 

are somewhat assuring. But there is ongoing deep congressional 

concern here, and your further efforts will be appreciated, and I 

look forward to our ongoing discussions about how we best minimize any prospect for abuse of these numbers. 

I want to get to the issues of your resources in order to get the 

job done. Last Congress, I looked closely at a proposal and had discussions with the Office of Management and Budget about it that 

would have allowed the administrative functions of Social Security 

to be funded out of the trust fund, appropriated through the congressional appropriations process drawn out of the trust fund. That 

is a fairly common practice relative to trust funds. The trust fund 

serves the intended purpose, and the costs of administering that 

program come also from the trust fund. 

The Social Security trust fund is vast. While the administrative 

expenses are notable, they do not impact the actuarial life of the 

fund, again, in light of the significance of resources of the fund. 

Looking forward at the extraordinary pressure that there is 

going to be on general fund dollars, I am wondering what your 

thoughts are in terms of whether Congress ought to contemplate 


E:\HR\OC\D410A.XXX
41

again shifting the ultimate source of funding for Social Security 

onto the Social Security trust fund. 

Mr. MASSANARI. As you know, Mr. Pomeroy, the bulk of what we 

call our LAE account, the limitation on administrative expenses, 

the bulk of that funding does come from the trust fund. Of course, 

there are spending limits because our LAE account is subject to the 

discretionary spending caps, and that, of course, does impose some 

limits on our ability to spend. 

From where we sit within the agency, the mechanism itself is 

less important to us than getting adequate funds to carry out our 

responsibilities. So it’s not the mechanism that is important to us, 

but getting sufficient dollars to effectively carry out our mission. 

Mr. POMEROY. I thank you for your comment and your gentle 

way of correcting me relative to my fundamental premise. It was 

the spending cap that was basically the constraint. 

Mr. MASSANARI. Yes. 

Mr. POMEROY. OK. That really didn’t make a lot of sense, having 

it under the spending cap, because the spending cap was for the 

most part trying to deal with general fund outflows. 

Well, I think that is an issue we will have to continue to evaluate 

because there aren’t many functions that the Federal government 

performs more important than the prompt, competent execution of 

the Social Security program. You have to have the resources to do 

it. If we are asking more and more in terms of the performance 

part, without giving you the resources you need to get your job 

done, the person who ultimately is going to pay the price is those 

relying upon the Social Security program. So I hope we will be able 

to work forward making sure you can have the resources you need 

to get your work done. 

Thank you very much. I yield back, Mr. Chairman. 

Mr. MASSANARI. Thank you, Mr. Pomeroy. 

Chairman SHAW. Thank you. Mr. Collins. 

Mr. COLLINS. No questions. 

Chairman SHAW. Mr. Massanari, with a little bit of luck, this 

may be your last appearance before our Committee. 

Mr. MASSANARI. I think you said that the last time, Mr. Chairman. 

[Laughter.] 

Chairman SHAW. Sir, we are dealing with the Senate. 

[Laughter.] 

Chairman SHAW. But I do understand that Jo Anne Barnhart is 

about ready to be confirmed. I just want to point out our appreciation for the warm relationship that you have had with this Committee. You have been the Acting Commissioner, I would say without any qualification, through the roughest time since the beginning of the agency, together with the heroes sitting to your left and 

to your right and the people working under them. And we greatly 

appreciate your service to your country. We appreciate your taking 

this agency at a very difficult time and steering it through a horrendous time. And I just want to express the appreciation of this 

Committee and the American people for the great job that you have 

done. 

[Applause.] 

Chairman SHAW. Mr. Collins. 


E:\HR\OC\D410A.XXX
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Mr. COLLINS. Mr. Chairman, there is one thing that I would like 

to mention, and I believe Mr. Brady brought this up a few minutes 

ago about the administrative law judges. And I believe you answered in the affirmative that there needs to be and should be and 

will be some reform in that area. 

I hear this from my administrative law judges in the Atlanta Regional Office, and we encourage the Social Security Administration 

to follow through with that proposal. They do need help, and, you 

know, they are trying to do the best job they can, but there are 

quite a few restrictions on just how they can operate. And we appreciate your interest there. 

Mr. MASSANARI. That is an area we are working on, Mr. Collins, 

and I can assure you it is an area that our Commissioner Designate has a great deal of interest in, and it will be one of her top 

priorities when she arrives in the next couple of weeks. 

Mr. COLLINS. Very good. Thank you, sir. 

Chairman SHAW. Ms. Disman and Ms. Watkins, please express 

the appreciation of this Committee and I think of all the American 

people for the wonderful job that your employees are doing to keep 

this system up and working through very difficult times. 

Thank you. 

[Questions submitted from Chairman Shaw to Mr. Massanari, 

and his responses follow:]

Social Security Administration 

Baltimore, Maryland 21235

1. Every event, no matter how tragic, has to also be seen as an opportunity. The events of September 11 have given you a chance to assess what 

the Agency needs to function efficiently in the new world of terrorism. Unfortunately, this incident may not be the last, and the next occurrences 

could be very different from the first. What plans are you undertaking to 

better respond for the next time? Is there anything we can do to help in 

your efforts? 

The Social Security Administration (SSA) has gained extensive experience dealing 

with major disasters, such as Hurricane Andrew in Florida, Earthquakes in Los Angeles and San Francisco, and the Oklahoma City bombing. We will continue to draw 

upon these experiences as well as the lessons learned in addressing the World Trade 

Center and Pentagon attacks. Our operational and physical security procedures 

were effective. We are confident that our personnel will respond with the same commitment and flexibility to any future crises. We will continually refine and update 

our Continuity of Operations Plan to ensure that critical Agency activities continue 

in the event of a disaster so that we will be able to serve those who are directly 

affected by a disaster and the nation as a whole. 

SSA has divided its response to the recent terrorist activities into two major categories: 

• Short-term initiatives to address identified weaknesses in the Agency emergency response, and 

• Long-term strategic initiatives to ensure the Agency would be prepared for the 

full recovery of its systems and has an effective recovery strategy for future events. 

As part of the short-term initiatives, SSA’s Office of Systems has created a Remote Control Center (RCC) for the National Computer Center (NCC). The facility 

allows the Agency to continue operating essential computer systems even when personnel do not have physical access to the building. During the next phase of this 

project, the RCC will be expanded so that personnel could continually occupy the 

facility, providing a secondary operating location for the NCC. 

In addition, the Agency’s Occupant Emergency Plan, Emergency Response Plan, 

Continuity of Operations Plan, and Technical Procedures for Off-site Recovery of the 

NCC Computing Environment have all been reviewed and updated to reflect the 

new threats our nation faces. 

The primary long-term initiative plan is to review our disaster recovery alternatives. Given the number of recent innovations in technology, the evaluation is 

necessary to ensure the Agency has effectively covered all its critical assets from a 

disaster recovery perspective. 


E:\HR\OC\D410A.XXX
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2. In your testimony, you say you are following the protocols issued by 

the Centers for Disease Control relative to referring employees for treatments. Can you summarize for us the number of employees who are under 

going treatment? Also, have any employees tested positive for anthrax exposure? Has evidence of anthrax been found in any of your offices? 

SSA has followed the recommendations of the Centers for Disease Control and 

Prevention as well as the implementation guidelines from pertinent State and local 

health departments. In all cases, SSA informed our employees of these guidelines 

and took steps to ensure that staff followed current procedures. SSA maintained 

close contact with all involved health departments, advised them of exposure risks 

at SSA sites, and conveyed the various health departments’ advice to managers and 

employees. 

SSA took a number of steps to ensure that employees had access to appropriate 

medical evaluations. SSA facilitated visits for 930 employees to various health clinics. 

We tested a limited number of SSA sites with the highest potential for contamination. Test results for these sites have been negative for anthrax. Therefore, in line 

with State health department recommendations based on advice from the Centers 

for Disease Control, we advised our employees that there is no longer a need to continue with antibiotic prophylaxis against anthrax (unless they have been directed 

to do otherwise by their own health care provider). To date no SSA employees or 

worksites have tested positive for anthrax. 

3. You also mention that you have supplemented existing security and 

placed an additional 322 new guards in field offices. How are you collecting 

information from your employees about their concerns for safety? What is 

the feedback you are hearing from them, given the additional security 

measures you have taken? Do they tell you there is more to do? 

Although we have not had a formal opportunity since September 11 to measure 

employees’ concerns about office security, we know that the attack and subsequent 

events have caused substantial concerns among our employees about the safety of 

the facilities in which they work. For example, employees are aware that concerns 

about possible exposure to anthrax have prompted the closing of a number of Social 

Security offices since September 11. Fortunately, none of these incidents involved 

actual anthrax exposures. Immediately after the September 11 attack, we authorized the employment of security guards at all SSA facilities that did not already 

have them. We are continuing to evaluate the security of our offices and the safety 

of our employees and will provide enhancements where they are needed. We are 

confident that through our communications with SSA offices that most employees 

are satisfied with our response to physical security. However, we do still get emails 

and letters from individual employees raising issues. Let me assure you that we 

take our employees’ concerns about security very seriously and we will continue to 

address the concerns that they raise. 

4. When new security features are added to Social Security cards to make 

them less counterfeitable, do you reissue the Social Security cards? Can 

you tell us how many versions of the card are out there now? 

SSA has never undertaken a mass reissuance of SSN cards, in part due to the 

prohibitive cost. When the format of the card has been changed or we have added 

new security features, the changes have been made prospectively. We only reissue 

cards at the request of the cardholder. In 1997, SSA estimated that 277 million 

cards would have to be reissued if more counterfeit resistant cards were to be issued 

to everyone. 

There are currently 48 different versions of the SSN card that have been used 

since 1936 when the first cards were issued, all of which remain valid. Since 1978, 

SSA has required proof of identity and citizenship/resident status when new or replacement cards are issued. The first counterfeit resistant SSN card was issued on 

October 31, 1983. The current version was first used in June 1999. 

5. In light of the recent events, some individuals have called for a national identification card. In 1997, your Agency at the request of Congress, 

provided a report to Congress regarding options for enhancing the Social 

Security card. Would you summarize for us your overall findings, how Congress has dealt with this issue in the past, and what are the key points we 

would need to think about if we were to consider pursuing such an option? 

The immigration and welfare reform laws passed in 1996 required the Commissioner of Social Security to develop a prototype of a counterfeit-resistant Social Security Card. SSA responded by issuing a 1997 Report to Congress entitled, ‘‘Options 

for Enhancing the Social Security Card.’’ The legislation required an evaluation of 

the cost and workload implications if an enhanced Social Security card were issued 

to all current number holders. 


E:\HR\OC\D410A.XXX
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To summarize the findings of the report, it was estimated in 1997 that 277 million cards would need to be reissued, at a cost ranging from $3.8 billion to $9.2 billion 

depending on the card technology selected. Approximately 70,000 workyears would 

be required. Interviewing people to determine the identity of each number holder 

requires the largest cost and is the source of the greatest inconvenience to the public. 

Key to the future enhancement of the Social Security card is the need to balance 

privacy protection and public interests, while providing integrity for our data systems. Also, in deciding the features of the card, it would be necessary to decide in 

advance the uses to which the card would be put. 

6. In your testimony, you mention that as soon as you learned that some 

of the terrorists may have had fraudulent Social Security numbers and 

cards, you formed a high-level response team. This team, which includes 

representatives from the Office of Inspector General, has provided you 

with the first of their recommendations. Can you share these with us? 

The high-level response team is reexamining our enumeration process to determine what changes we need to make in our policies and procedures to ensure that 

we are taking necessary precautions to prevent misuse of Social Security numbers 

and cards. The team recommends the following seven improvements to the enumeration process. They are to: • Provide refresher training on enumeration policy and procedures, with emphasis on enumerating noncitizens, for all involved staff; • Convene a joint task force between SSA, Immigration and Naturalization Service (INS), the Department of State and the Office of Refugee Resettlement to resolve 

issues involving enumeration of noncitizens, including working out procedures for 

verifying INS documents before SSN issuance; • Eliminate drivers’ licenses as a reason for assigning a non-work SSN; • Limit information released by field offices to reduce the potential for identity 

theft; • Conduct a mandatory interview for all applicants for original SSNs over the age 

of 12. Verify the birth records of all applicants for original SSNs over the age of 

1 and require evidence of identity for all children, regardless of age; • Determine the feasibility of photocopying (or scanning) all documentary evidence submitted with SSN applications; and • Enhance the Modernized Enumeration System (MES) to electronically record 

the type(s) of evidence submitted by the applicant for all modes of SSN application 

input. This ensures that an electronic audit trail is available for all SSN applications. 

Of these recommendations, the refresher training has been conducted, and a system enhancement to the Modernized Enumeration System has already been implemented. I anticipate that the other recommendations will be implemented within 

the next few months. 

In addition, the response team is reviewing previous Inspector General’s recommendations with respect to enumeration. The team is also looking at accelerating 

several enumeration initiatives that had been underway prior to September 11. 

I am confident that these initial and other long-term recommendations under consideration will strengthen the safeguards in our enumeration process. 

7. You acknowledge that the World has changed since September 11 and 

that you need to reassess the balance between customer service and security. You also mentioned that the response team is reviewing previous recommendations made by the Office of Inspector General over the last five 

years. How have the events of September 11 changed your view of these 

recommendations? 

It is clear that security has assumed a much greater importance now than it had 

before September 11, and it will have a more prominent role in the actions and decisions of the Social Security Administration. 

The Enumeration Response Team formed after September 11 has identified recommendations, including those of the Inspector General, that will strengthen the security of our processes. Specifically, the team reconsidered and recommended implementing several previous enumeration recommendations from the Inspector General. In addition to the team’s review, I have also asked my Counselor to review 

all the Inspector General’s recommendations. 

8. Regarding ways to improve the enumeration process, would you explain how enumerating at the point of entry could result in a more effective process? Is it easier to verify documentation? 

SSA has negotiated an agreement with INS and the Department of State (DOS) 

where the information required to assign an SSN will be collected as part of the 

immigration process. The project, known as Enumeration at Entry (EAE), will hopeVerDate Jan 17 2002 05:44 Feb 20, 2002 Jkt 077410 PO 00000 Frm 00048 Fmt 6633 Sfmt 6621 E:\HR\OC\D410A.XXX pfrm03 PsN: D410A

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fully eliminate the need for SSA personnel to evaluate and verify INS or State Department documentation presented by an applicant. 

This process will help SSA reduce the opportunity for fraud since INS or DOS will 

be providing the information needed to issue a Social Security number to a noncitizen directly to SSA. Initially this process will be piloted for individuals admitted 

for permanent residence, but with agreement from INS and DOS, the piloted process would then be expanded to other non-immigrant categories. 

9. Congresswoman Sue Kelly in her testimony discussed what she sees as a ‘‘government loophole’’ that makes identity theft easier-namely, the Social Security Administration not gathering and distributing death information more timely and utilizing technology, and also suggesting that the Social Security number be permanently deactivated. What do you think of the 

points Ms. Kelly raises? Can SSA do better? Is deactivating SSNs feasible 

or desirable? 

SSA is working with other agencies, including the National Technical Information 

Service (NTIS) to implement recommendations made by Congresswoman Kelly. We 

are currently making changes to provide SSA’s Death Master File (DMF) to NTIS 

on a weekly, as well as a monthly basis. NTIS, which receives the DMF from SSA, 

is making plans to process the files weekly and also plans to be able to share that 

information on a weekly basis to those who request the DMF from them. In addition, SSA has made a commitment to provide the updates to the DMF electronically 

to the 19 agencies that currently receive the file from SSA and are willing to process 

the data electronically. 

We believe that proposals to deactivate SSNs raise significant concerns, if the 

term ‘‘deactivate’’ means deleting or removing the SSN and the associated information from SSA’s records. When we become aware that the person to whom a number 

was assigned has died, we annotate our records to reflect that fact. If any subsequent wage activity is reported, we are aware of it and can investigate. Deleting 

an SSN or removing it from our main databases would undermine key SSA operations. Deactivation could facilitate fraud if the deactivated numbers can be exploited freely (as in death cases) without raising detection flags in our systems. In 

addition, deleting SSN earnings histories from our records would create problems 

in processing claims for survivors benefits for individuals who become eligible long 

after the worker’s death, e.g. widow. 

10. Are there automated systems enhancements, which SSA should implement to improve SSN verification and help eliminate identity theft? 

While we believe our current processes are secure, we have a number of systems 

enhancements underway to further strengthen the security of our enumeration processes. One such project is Enumeration at Entry (EAE) which we described in question 

8. 

Another project is to expand agreements with State Departments of Motor Vehicles to verify SSNs during the drivers’ licensing process through a system known 

as AAMVA-net. Currently 17 States participate and the number is expected to grow. 

A meeting (including representatives from our Office of Inspector General) was recently held to promote this growth. 

There are also enhancements to the Modernized Enumeration System (MES) underway to detect fraud-prone transactions. 

11. Has there been any thought of giving a different type of SSN to noncitizens? Would a different identifier help institutions, such as universities, 

manage and follow the number of foreign students? For organizations that 

rely solely on the SSN as way of legitimizing a person’s status, would a separate number encourage an organization to ask for more proof of identity 

and purpose? 

SSA is consulting with those who are directly involved, such as law enforcement 

officials, to help determine whether an identifiably different Social Security number 

for noncitizens would be desirable. Of course, for SSNs issued after April 1981, 

SSA’s own internal records indicate whether or not a person was a noncitizen at 

the time the number was issued. 

With respect to SSN cards, those for certain noncitizens already bear restrictive 

legends. Some identify the owner as having only temporary authority to work. Others bear a legend indicating that the SSN is not valid for employment (in the case 

of those who are not authorized by INS to work but who have a currently valid nonwork reason for an SSN—for example, to receive a Federally financed benefit). Noncitizens who have permanent work authorization receive the same card as U.S. citizens. 

12. The IG stated in his testimony that an SSA employee processed an 

SSN and sold it to a suspected terrorist. How exactly was this accomVerDate Jan 17 2002 05:44 Feb 20, 2002 Jkt 077410 PO 00000 Frm 00049 Fmt 6633 Sfmt 6621 E:\HR\OC\D410A.XXX pfrm03 PsN: D410A

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plished? How did this employee get caught for his deed? What if anything 

can be done to prevent any future occurrences? 

While I defer to the Inspector General to discuss the specifics of the case, I believe 

that any such abuses are very serious, and demand constant vigilance on the part 

of Agency managers to prevent them. We have an aggressive program in place to 

address improper or fraudulent activity relating both to the access to personal data 

in our databases and the issuance of SSNs. 

SSA has a comprehensive integrity review system to select cases which contain 

certain high-risk criteria. Local managers are required to review any case selected 

through the integrity review process in order to ensure the transaction was appropriate and accurate. If a case is determined to be suspicious, the local office works 

with the Office of the Inspector General to fully investigate and determine what action is warranted. Through this process, SSA is able to remain vigilant in overseeing 

the integrity of the enumeration process and fulfill our stewardship responsibilities. 

We are continually reviewing our processes to ensure that the most effective safeguards available are in place for maintaining the integrity of SSA’s programs. We 

will work very closely with the Office of the Inspector General to aggressively pursue any allegations of improper conduct. 

13. I understand that the IG conducted an audit which focused on SSA 

pursuing matching agreements with New York and other States that use biometric technologies. The States which use this technology do so to combat 

fraud and identify ineligible recipients in social service programs. As you 

know, this technology is used for identification purposes by measuring 

unique characteristics such as fingerprints. In a recent audit report, the IG 

recommended that SSA pursue matching agreements with New York and 

the other States that are using this technology. Can you give us your 

thought on this? What type of benefits and drawbacks if any would be 

gained by taking advantage of this technology? What program savings do 

you believe could result? 

SSA agreed, as the Inspector General suggested, to pursue the feasibility of entering into a matching agreement with New York to determine if any SSA beneficiary, 

who also was receiving or had applied for a State benefit, refused to provide a fingerprint to the State. Under the Inspector General’s proposal, those individuals’

cases would be reviewed to determine if they were properly receiving benefits from 

SSA. SSA would not actually use the fingerprint data collected by the State. The 

use of these technologies even in this manner breaks new ground and consequently 

SSA is proceeding carefully, but we are proceeding as we agreed. At present, we are 

unable to estimate the amount of program savings that might result. 

SSA recognizes the benefits of technical advances to safeguard the integrity of our 

programs, and the Agency has demonstrated its commitment to use technology. The 

developing field of biometrics may well provide opportunities for SSA to improve the 

administration of its programs, and we are certainly open to those opportunities. At 

the same time, we must also be aware of the privacy concerns associated with the 

government collecting and using biometric data.

witness. We have James Huse, who is the Inspector General, Office 

Chairman SHAW. Now the next witness I believe is just a single 

f of the Inspector General, from Baltimore, Maryland. Mr. Huse, welcome back to this Committee. 

STATEMENT OF THE HON. JAMES G. HUSE, JR., INSPECTOR 

GENERAL, OFFICE OF INSPECTOR GENERAL, SOCIAL SECURITY ADMINISTRATION 

Mr. HUSE. Thank you, Mr. Chairman. I am just checking my 

watch to be sure it is still morning. 

Good morning, Mr. Chairman, and Members of the Subcommittee. Before I start, I want to thank Acting Commissioner 

Massanari for his compliments to the Office of the Inspector General, and I have to say that I am often cast in a tough spot as the 

watchdog of the agency. But in regard to the events on September 


E:\HR\OC\D410A.XXX
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11, we are part of the SSA team. And we have worked as one, and 

it has been an honor and a privilege for us to do that. 

I have come before you on many occasions to discuss the misuse 

of Social Security numbers, but never before in a situation such as 

this. In the past 5 weeks, we have learned that the risks inherent 

in failing to adequately protect the integrity of the SSN may have 

serious consequences. 

My office is currently involved in a great many investigations of 

subjects and witnesses suspected of association with the events of 

September 11. It has quickly become apparent just how instrumental the use of a fraudulent SSN has been for these individuals, 

who rely on aliases and assumed identities in order to integrate 

themselves anonymously into our society. 

I would like to describe one example of an investigation being 

conducted by the FBI and one of our field divisions involving an individual currently under INS detention for immigration violations. 

The investigation determined that the individual purchased a 

fraudulent SSN processed by a former SSA employee who was indicted and prosecuted. The fraudulent Social Security number and 

associated INS documents enabled this man to remain and function 

without restriction in the United States. 

This is only one example of how the SSN has been integrated in 

the national investigation into the September 11 attacks. Our office 

has been a busy participant in the investigation from the start. 

Across the country, our agents are assigned to joint terrorism 

task forces, and four senior investigative officials in Baltimore oversee all of our emergency operations. Many of our investigators are 

working full-time on the terrorism investigation and responding to 

allegations of SSN misuse. This has obviously left us somewhat 

shorthanded in other areas. 

What has become apparent in the case I discussed a moment ago, 

and in all of our work on the national investigation, is that a purloined SSN is as useful a tool for terrorists as it is for identity 

thieves. We must now address that reality as we continue our efforts to deal with these problems. 

The first step in that renewed efforts is to face again an unavoidable reality. While never intended to be such, the SSN is used as 

our National identifier. 

The SSN is used legitimately in so many areas of our lives that 

it is impossible to think that we can turn back the clock and reverse its use to tracking earnings and paying benefits, the uses for 

which it was originally designed. We can, however, take two critical 

steps. 

The first is to stop the issuance of SSNs to those who would use 

them to commit crimes. Enumeration, the process by which SSNs 

are issued by the Social Security Administration, has been the subject of several audits by my office, and we have made numerous 

recommendations. Most notable is the need for independent 

verification of evidentiary documents submitted in support of applications for SSNs. Whether by statute, by regulation, or by policy, 

SSA must be required to verify the evidence submitted by SSN applicants before approving any SSN application. And if those documents originate with the INS, the INS should certify them. 


E:\HR\OC\D410A.XXX
48

H.R. 2036, introduced by this Subcommittee, does require 

verification of birth records for SSN applicants and moves us closer 

to the INS certification requirement. It is my hope that upon enactment of this bill, SSA and the INS will move quickly to establish 

such a program. SSA is justifiably proud of its track record of outstanding customer service, but we must achieve a more effective 

balance between security and expediency. I believe the Enumeration Work Group chartered by the Acting Commissioner within 

days of the terrorism attacks is developing appropriate adjustments 

to our business processes to respond to this need. 

The second step we must take is to better protect validly issued 

SSNs. The Subcommittee’s bill not only provides better enforcement mechanisms, but is designed to stop the indiscriminate display of SSNs on public documents and the sale and purchase of 

SSNs over the Internet and by other means. 

By acknowledging that the SSN is our virtual national identifier, 

we accept the responsibility to protect its integrity—not only to 

prevent the financial crimes that have historically defined SSN 

misuse, but to ensure that it is not used for other criminal purposes as well. 

By limiting the public availability of SSN information and continuing to review the added value of stronger controls over the 

issuance of SSNs, even if those controls are more time-consuming 

and more expensive, we can make true progress. we must not 

maintain the status quo and provide any advantage to those with 

criminal intentions. 

We have already fought long and hard to reduce SSN misuse, 

and we stand ready to do more. We know now, without question, 

that this illegal activity not only facilitates financial crimes, but 

provides capacity for organized criminal enterprises to sustain 

themselves while engaged in acts of terrorism. Certainly I cannot 

state that the SSA Office of the Inspector General can prevent terrorism, or even completely eradicate SSN misuse. But the time has 

come to attempt—and accomplish—still more. 

Thank you, and I would be happy to answer any questions. 

[The prepared statement of Mr. Huse follows:]

Statement of the Hon. James G. Huse, Jr., Inspector General, Office of 

Inspector General, Social Security Administration

Good morning, Chairman Shaw, Congressman Matsui, and members of the Subcommittee. I have come before you on many occasions to discuss the misuse of Social 

Security numbers, but never before in a situation such as this. In the past five 

weeks, we have learned that the risks inherent in failing to adequately protect the 

integrity of the SSN may have serious consequences. 

My office is currently involved in a great many investigations of subjects and witnesses suspected of association with the events of September 11. It has quickly become apparent just how instrumental the use of a fraudulent SSN has been for 

these individuals, who rely on aliases and assumed identities in order to integrate 

themselves anonymously into our society. 

I would like to describe one example of an investigation being conducted by the 

FBI and one of our Field Divisions involving an individual currently under INS detention for immigration violations. The investigation determined that the individual 

purchased a fraudulent Social Security Number processed by a former SSA employee who was indicted and prosecuted. The fraudulent Social Security number and 

associated INS documents enabled this man to remain and function without restriction in the United States. 

This is only one example of how integral the SSN has been to the national investigation into the September 11 attacks. Our office has been a busy participant in 

the investigation from the start. Within minutes of the attack on the World Trade 


E:\HR\OC\D410A.XXX
49

Center, my Special Agent-in-Charge for the New York Field Division was in contact 

with the FBI, offering the services of the eighteen Special Agents under his command. Our involvement in the ongoing national investigation, mandated by the role 

the SSN plays in establishing false identities and committing the financial crimes 

necessary to bankroll terrorism, has grown on a daily basis. 

While top management officials at our Baltimore headquarters worked with the 

Commissioners of Social Security and the Internal Revenue Service to secure appropriate authority to share data with the FBI, our field agents swung into action. Nine 

of our agents in the New York/New Jersey area remain assigned exclusively to the 

FBI investigation. At headquarters, one of our agents was quickly assigned to the 

FBI’s Strategic Information and Operations Center, another to the National Infrastructure Protection Center. Six members of our electronic crime team have rendered assistance to the FBI, while two of our computer specialists write programs 

to more specifically query SSA’s databases for information the FBI needs. Seven additional agents are fielding those requests for SSN information on suspects and witnesses, each of which is routed through the FBI’s Baltimore office to our headquarters. Across the country, more of our agents are assigned to Joint Terrorism 

Task Forces, and four senior investigative officials in Baltimore oversee all of our 

emergency operations. Many of our investigators are working full-time on the terrorism investigation and responding to allegations of SSN misuse. This has obviously left us somewhat short-handed in other areas. 

What has become apparent in the case I discussed a moment ago, and in all of 

our work on the national investigation, is that a purloined SSN is as useful a tool 

for terrorists as it is for identity thieves. We must now address that reality as we 

continue our efforts to deal with these problems. 

The first step in that renewed effort is to face again an unavoidable reality. While 

never intended to be such, the SSN is used as our national identifier. 

The SSN is used legitimately in so many areas of our lives that it is impossible 

to think that we can turn back the clock and reserve its use to tracking earnings 

and paying benefits, the uses for which it was originally designed. We can, however, 

take two critical steps. 

The first is to stop the issuance of SSNs to those who would use them to commit 

crimes. Enumeration, the process by which SSNs are issued by the Social Security 

Administration, has been the subject of several audits by my office, and we have 

made numerous recommendations. Most notable is the need for independent 

verification of evidentiary documents submitted in support of applications for SSNs. 

Whether by statute, by regulation, or by policy, SSA must be required to verify the 

evidence submitted by SSN applicants before approving any SSN application. And 

if those documents originate with the INS, the INS should certify them. H.R. 2036, 

introduced by this Subcommittee, does require verification of birth records for SSN 

applicants and moves us closer to the INS certification requirement. It is my hope 

that upon enactment of this Bill, SSA and the INS will move quickly to establish 

such a program. SSA is justifiably proud of its track record of outstanding customer 

service, but we must achieve a more effective balance between security and expediency. I believe the Enumeration Work Group chartered by the Acting Commissioner 

within days of the terrorism attacks is developing appropriate adjustments to our 

business processes to respond to this need. 

The second step we must take is to better protect validly issued SSNs. The Subcommittee’s Bill not only provides better enforcement mechanisms, but is designed 

to stop the indiscriminate display of SSNs on public documents and the sale and 

purchase of SSNs over the Internet and by other means. 

By acknowledging that the SSN is our virtual national identifier, we accept the 

responsibility to protect its integrity—not only to prevent the financial crimes that 

have historically defined SSN misuse, but to ensure that it is not used for other 

criminal purposes as well. 

By limiting the public availability of SSN information and continuing to review 

the added value of stronger controls over the issuance of SSNs, even if those controls are more time consuming and more expensive, we can make true progress. We 

must not maintain the status quo and provide any advantage to those with criminal 

intentions. 

We have already fought long and hard to reduce SSN misuse, and we stand ready 

to do more. We know now, without question, that this illegal activity not only facilitates financial crimes, but provides capability for organized criminal enterprises to 

sustain themselves while engaged in acts of terrorism. Certainly I cannot state that 

the SSA Office of the Inspector General can prevent terrorism, or even completely 

eradicate SSN misuse. But the time has come to attempt—and accomplish—still 

more. Thank you, and I’d be happy to answer any questions.


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50

Chairman SHAW. Mr. Huse, how many of the terrorists had Social Security numbers? 

Mr. HUSE. It is my understanding that all 19 had Social Security 

numbers. 

Chairman SHAW. Now, how did the fact that they have Social Security numbers help them to accomplish the destruction that they 

did? 

Mr. HUSE. There is absolutely no doubt from the record and from 

our investigative experiences since September 11 that these individuals, irrespective of how they came to get a Social Security number—some used fraudulent documents, some may not have; some 

had expired visas. In any case, the balance of them shouldn’t—or 

wouldn’t have received them had all of our systems been integrated 

together. 

But the Social Security number, once obtained, allowed them to 

obtain driver’s licenses, the ability to transport themselves. It allowed them to gain and obtain financial loans and credit. It enabled them to engage in commerce within the United States. Basically, it allowed them anonymity, the ability to absorb themselves 

into our society below the radar, if you will. And there is no doubt 

that the obtaining of the Social Security number is the first act 

that enables you to do all of these things. 

Chairman SHAW. Would you walk us through the process that 

each of these people had to do or you would suspect they had to 

go through in order to obtain that number? 

Mr. HUSE. At every one of the instances, they would have come 

to this country with some type of documentation—passport and obviously some type of a visa since they were not citizens. 

Coming to the Social Security Administration, they would have 

brought these documents and filled out an application for—— Chairman SHAW. They would personally have to come to the Social Security Administration? 

Mr. HUSE. They would personally present themselves. Correct, 

sir. 

Chairman SHAW. OK. 

Mr. HUSE. They would then have to assure Social Security by 

filling out an application that they were legally inside the United 

States for allowable purposes: tourism, education, work, be that as 

it may. Then Social Security looks at these documents and determines that they are true and not counterfeit. 

Chairman SHAW. Is a copy made of these documents? 

Mr. HUSE. Unfortunately, a record is made of them but copies 

are not. We have hopefully—going forward, one of the recommendations of this work group is that we are going to try to 

start to do that. 

But this comes back to this process. There is an attempt to verify 

the visa status of these people with INS, but as this Subcommittee 

is aware, that process is somewhat—it is difficult because the data 

that INS has is not in real time. There is a time lapse. So there 

are opportunities for judgments to be made as to whether or not 

the person obtains the Social Security number based on what they 

have presented, and it is a possibility that these may not have the 

scrutiny. They are making this judgment based on customer service, in other words, for legitimate visitors to our Nation, they need 


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51

to go to work or they need to begin to school, they can’t wait. So 

they are enumerated. They get the number. 

In our post-attack work group, we will change some of those 

processes. 

Chairman SHAW. Now, when someone does come to this country, 

even if they don’t have a green card or a work permit or a work 

visa, they are here on perhaps a student visa, they still would go 

in and get a Social Security card or a Social Security number, as 

I would assume they would need this in order to open a bank account. Some of the universities require that. 

Mr. HUSE. For their student ID. 

Chairman SHAW. Use it as a student ID number, which practice 

we are discouraging and will shortly outlaw, I hope. What other 

reasons would they need a Social Security number for? 

Mr. HUSE. When we take the instances, the horrible instances of 

the September 11 events, they would have needed a Social Security 

number to get flight lessons, for the applications to take—you 

know, to make application with a flight school. They certainly 

needed the Social Security number to get a driver’s permit to allow 

them to transport themselves around from place to place. 

The Social Security number is so integrated into our daily lives 

that it is caused me even to shift my position somewhat before this 

Committee. I used to think we had the chance to put some of these 

things back in the box, to pull back somewhat. Now, looking on the 

realities after September 11, I wonder if we have to face up to the 

real issue about the ambiguity we all have about this number. 

Is it our National identifier or isn’t it? It is not my place to make 

that determination or even to make policy, but I have to ask myself 

if the procedures we use now are adequate to the uses we have put 

this number to. 

Chairman SHAW. Well, Jim, very simply, it has become a national identifier, whether we like it or not, and I think what our 

job now is to do—the law was not drawn to make it a national 

identifier. Now what we have to do is to be sure that the law protects this national identification. 

But it would appear that we would still want it to be used when 

someone applies for a driver’s license, although that number, after 

the issuance of the license, would be protected from public view. 

Mr. HUSE. I think that is the ideal, and I think that is the right 

place for the number. I still truly believe we have an obligation to 

preserve the privacy of the number. However, it is apparent to me 

that we have also an equal obligation to make sure that this number has some integrity. 

Chairman SHAW. Do you know if the supplying of the Social Security number is an FAA, Federal Aviation Administration, requirement for flight lessons? 

Mr. HUSE. I don’t know that. We can find that out and get back 

to you, Mr. Chairman. 

Chairman SHAW. I wish you would because—— Mr. HUSE. I do know that the schools required the number, 

though, as they would—as most businesses do for the financing and 

application. 

Chairman SHAW. Well, even when you are not dealing with terrorists, I kind of want to know who is up there, I think so, because 


E:\HR\OC\D410A.XXX
52

we are down here. And I think that is important to all of us. Mr. 

Hayworth? 

Mr. HAYWORTH. Thank you, Mr. Chairman. 

We appreciate your testimony, sir, and it raises many more questions. When you talk about flight lessons, the tragedy of this, in 

hindsight, at the Scottsdale Air Park we know that some of these 

perpetrators—strike that—murderers took their flight lessons at 

Scottsdale Air Park. I visited the facility. 

But as we are looking at this, it seems to me just hearing this 

testimony that we are going to have to devise some other means 

of student identification for foreigners who come to this country. I 

know that many of us have relied—the Social Security number first 

became an identifier for me during college days when grades would 

be posted out, and thank goodness people didn’t have your number 

memorized. But even thinking about that action now, think about 

the propensity for someone who actually shows up to go to school 

for a while, may start as undecided, then decides to major in nuclear engineering, to go down the hallway and copy down numbers 

when grades are being posted. 

There are so many things that we have to take care of, but I 

think we are going to have to definitely rethink any type of application of foreign students for Social Security cards to be registered 

on university campuses. That is going to have to change. 

Inspector, recent press reports discussed the indictment of an individual in Phoenix based on Social Security charges with possible 

connections to the terrorist attacks. Can you tell us what role your 

office played in that investigation? And are you able to share any 

of those findings with us at this hearing this morning? 

Mr. HUSE. Mr. Hayworth, that is true. My office, working with 

the FBI and the United States Attorney in Arizona, in Phoenix, 

have been able to effect the indictment of an individual who is associated with these activities of September 11. 

I can’t be too specific because some of this information is still 

part of the active investigation. But for a fact, this individual obtained his Social Security number using false, fraudulent information, and he has been indicted for those crimes before the United 

States court in Arizona. In fact, this past weekend, he was brought 

back from Europe to answer that indictment. 

Mr. HAYWORTH. Again, to amplify your testimony, Inspector, all 

19 of the perpetrators had Social Security numbers. 

Mr. HUSE. Yes. That is my understanding, that all 19 had Social 

Security numbers. Thirteen of them obtained those numbers, as 

near as we can determine, in a lawful manner, meaning that we 

decided they were worthy of receiving the number. And the balance, the other six, obtained them fraudulently, with phony numbers. In other words, 13 of the people at least were the same name 

as who they claimed to be in death as they were in life. 

Mr. HAYWORTH. So they walk right in, sit right down, I guess the 

distinction is just because it was legal or fit the rules, in retrospect, 

obviously, didn’t make it right. We are going to have to rethink the 

entire process. 

Mr. HUSE. That is our—those have been our recommendations in 

much of our work the past few years by my office in a range of audits. We do really need to verify all of the documents that are 


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53

brought before the Social Security Administration in granting these 

numbers. Each and every one of those breeder documents need to 

be verified. 

Mr. HAYWORTH. Thank you, sir. Thank you, Mr. Chairman. 

Mr. HUSE. I might add, no matter how long it takes, which is— that is the distinction in these days. 

Mr. HAYWORTH. I think the distinction, too, whatever it takes. If 

we have learned anything in the wake of these attacks on our 

homeland, three words sum it up: Whatever it takes, needs to be 

done. 

I thank you. Thank you, Mr. Chairman. 

Chairman SHAW. Thank you, Mr. Hayworth. 

Just a follow-up question. Is there any distinction made on the 

Social Security number that would in some way code the designation of the individual holding the card? Would there be a separate 

designation for a non-working visa as to a working visa? 

Mr. HUSE. We have a process of issuing non-work Social Security 

numbers, and those numbers are able to be determined, as opposed 

to a number that is issued for work purposes. We have to do this 

because some of the visitors to the United States have—let me say 

in the past we have had to do this because some of the visitors 

have needed a Social Security number, certainly at least in six of 

our States, in order to get a driver’s license—well, actually, in more 

States than that, but in six States it is the driver’s license number. 

So the practice of issuing non-work Social Security numbers is one 

of the matters that is under review by the agency in this process 

of re-evaluating the enumeration. 

Chairman SHAW. If I might make a suggestion, it seems that perhaps a prefix or a code, even if it was a single letter, that would 

designate and point out whether someone is a citizen and what 

their status was, by just putting a code, and when someone became 

a citizen, that could be removed from their number and they would 

retain that number from then on. So I think that might be helpful 

in trying to identify the people as to what their status is in this 

country. 

I would assume that the flight school would not have known the 

status of the people taking those flight lessons by just looking at 

the Social Security number. 

Mr. HUSE. No, they would not. 

Chairman SHAW. They could have been citizens. 

Mr. HUSE. Correct. There is no way for someone in commerce 

like that to know what the number stands for. 

Chairman SHAW. I have been just handed by staff, and for the 

record, I should read this: The Social Security Administration 

issues three types of cards: the cards which show an individual’s 

name and Social Security number, allowing that individual to work 

with restrictions, issued to U.S. citizens or people lawfully admitted 

to the United States with permanent INS work authorization. Two, 

the card that bears the legend ‘‘Not valid for employment’’—so that 

would be helpful—issued to those from other countries lawfully admitted to the United States without work authorization from the 

INS, and who need a number because of Federal law requiring an 

SSN to get a benefit or service; and, three, the card that bears a 

legend ‘‘Valid for work only with INS authorization,’’ issued to 


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54

those who are lawfully admitted to the United States on a temporary basis and with the INS authorization to work.

Social Security Administration 

Baltimore, Maryland 21235

Your Number And Card 

How To Get A Number And Card

To get an original number and card, you’ll need to complete an Application for 

a Social Security Card (Form SS–5), and show documents that prove your age, identity, U.S. citizenship or lawful alien status. 

To get an application:

• Use www.ssa.gov/online/ss-5.html on the Internet. 

• Call 1–800–772–1213. 

• Or, visit a local office.

Call your local Social Security office or our toll-free number 1–800–772–1213 before you visit the office. Tell them what documents you have. That way you won’t 

have to make a second trip. 

Remember, there is no charge to get a Social Security card. This service is FREE. 

Types Of Cards

We issue three types of Social Security cards: 

1. The card most people have shows your name and Social Security number and 

lets you work without restriction. We issue it to:

• U.S. citizens, or 

• people lawfully admitted to the U.S. with permanent Immigration and Nationalization Service (INS) work authorization.

2. The second card bears the legend, ‘‘NOT VALID FOR EMPLOYMENT.’’ We 

issue it to people:

• from other countries lawfully admitted to the U.S. without work authorization from INS; and 

• who need a number because of a federal law requiring a Social Security 

number to get a benefit or service.

3. The third card bears the legend, ‘‘VALID FOR WORK ONLY WITH INS AUTHORIZATION.’’ We issue it to people:

• lawfully admitted to the U.S. on a temporary basis; and 

• with INS authorization to work. 

How To Replace Your Card

To get a duplicate card because yours was lost or stolen, or a corrected card because you have changed your name, call or visit your local Social Security office to 

use this FREE service. You’ll need to:

• Complete an Application for a Social Security Card (Form SS–5). 

• Show evidence of your identity. If you need a corrected card, we need to 

see one or more documents which identify you by the old name on our records 

and your new name. The document showing your current identity must be of 

recent issuance so that we can determine your continued existence. 

• Show evidence of your U.S. citizenship or lawful alien status if you were 

born outside the U.S.

Your duplicate card will have the same name and number as your previous card. 

Your corrected card will have your new name and the same number as your previous card. 

Proving Your Identity

Some documents we can accept to prove your identity are:

• driver’s license; 

• employer ID card; 

• school ID card; 

• marriage or divorce record; 

• health insurance card (not a Medicare card); 

• military ID card; 

• adoption record; or 

• life insurance policy. 


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55

Protect Your Number And Records

Your Social Security number is used to keep a record of your earnings. Here are 

some things you can do to protect your earnings record and to make sure it is accurate:

• Keep your number and card in a safe place to prevent their theft. 

• Show your card to your employer voluntarily when you start a job, so your 

records are correct. Don’t rely on your memory. 

• Check your name and Social Security number on your pay stub and W–2 

form to make sure they are correct. 

Giving Your Numbers to Others

If a business or other enterprise asks you for your Social Security number, you 

can refuse to give it to them. However, that may mean doing without the purchase 

or service for which your number was requested. For example, utility companies and 

other services ask for your Social Security number, but do not need it; they can do 

a credit check or identify their customers by alternative means. 

Giving your number is voluntary even when you are asked for the number directly. If requested, you should ask:

• why your number is needed; 

• how your number will be used; 

• what happens if you refuse; and 

• what law requires you to give your number.

The answers to these questions can help you decide if you want to give your Social 

Security number. The decision is yours. 

Our primary message is this—be careful with your Social Security number and 

your card to prevent their misuse. 

If you think someone is misusing your number, ask us for the leaflet, When Someone Misuses Your Number (Publication No. 05–10064). 

Privacy of Records

We can’t prevent others from asking for your number. And we can’t control what 

uses are made of your number once you give it to someone. However, you should 

know that giving it to them does not give them access to your Social Security 

records. The privacy of your records is guaranteed unless:

• We are required by law to disclose information to another government 

agency. 

• The information is needed to conduct Social Security or other government 

health or welfare programs. 

What Does Your Number Mean

The nine-digit Social Security number is divided into three parts:

• The first three digits are the area number. If your Social Security number 

was assigned before 1972 when Social Security cards were issued by local offices, the area number reflects the State where you applied for your number. 

If your number was assigned in 1972 or later when we began issuing Social Security cards centrally, the area number reflects the State as determined by the 

ZIP code in the mailing address on your application for the number. 

• The middle two digits are the group number. They have no special geographic or data significance but merely serve to break the number into conveniently sized blocks for orderly issuance. 

• The last four digits are serial numbers. They represent a straight numerical 

sequence of digits from 0001–9999 within the group. 

For More Information

Check our website at www.ssa.gov for answers to many of the questions you may 

have about Social Security. You also may call us toll-free at 1–800–772–1213. We 

can answer specific questions by phone from 7 a.m. until 7 p.m. on business days 

and provide information by automated phone service 24 hours a day. If you are deaf 

or hard of hearing, you may call our TTY number, 1–800–325–0778, between 7 a.m. 

and 7 p.m. on business days. 

We treat all calls confidentially-whether they’re made to our toll-free numbers or 

to one of our local offices. We also want to ensure that you receive accurate and 

courteous service. That is why we have a second Social Security representative monitor some incoming and outgoing telephone calls.


E:\HR\OC\D410A.XXX
56

Chairman SHAW. I would add to that that we should have a separate designation as part of the number, because I know I have 

been asked for my Social Security number for any number of 

things, including trying to get frequent-flyer miles. I won’t give it 

out for any number of things. But, anyway, I can’t remember ever 

being asked to produce my card. My card is my original card, so 

it is very, very old. 

Mr. HUSE. As is mine, and it bears the legend, ‘‘Not for identification.’’ But the truth is, even in making application for flight lessons, or whatever you are doing, or for credit cards, which is also 

a dimension to this, you don’t ever show the card. A lot of times 

if it is done online, you don’t need to. It is the number, not the 

card. 

Chairman SHAW. Yes, and we need to make that part of the 

number. Mr. Pomeroy? 

Mr. POMEROY. Mr. Chairman, I want to thank you for holding 

this very important and timely hearing. 

Inspector, I note the evolution of your position, and I think that 

it is the right direction. Indeed, the use of the Social Security number as a national identifier is so completely interwoven into 21st 

century commerce that there would be an awful lot of expense and 

consumer inconvenience in trying to unravel all of that and start 

with something new. So then the issues are, as you point out, making certain that they not issued improperly or under fraudulent application, and then that once issued, once legitimately issued, 

policed very carefully. I think your testimony is right on point. I 

commend you for your new position. 

Anything you would like to say about what brought you to this 

conclusion? 

Mr. HUSE. Well, I think it is in the events following September 

11. I think all of us as citizens have come to review many of the 

freedoms we have taken for granted in this country, and certainly 

as these issues bearing on homeland security or homeland defense 

have been brought to our attention, it seems to me that one of the 

key pieces of homeland security is the notion that we have some 

surety that we are who we say we are. And we have seen many, 

many opinions, both here in the Congress and in other parts of the 

media and other people talking about the efficacy of a national 

identification card and that type of—well, I mean, that is not my 

place. That is a far greater debate than I certainly feel competent 

to even initiated. 

But I do know that we have, if we accept the record that we 

brought here to the Subcommittee the past few years, we already 

have a de facto national identifier. So it seems important to me 

that we look at the process we have today to secure that identifier. 

The process we have, well intended, is certainly not as robust as 

it needs to be. That is a fact. We have to fix that. If we are going 

to accept that it is what we say it is, we have to push this ambiguity away. 

Then going forward, we have to look at how do we make that 

even stronger, taking into account all of the technology and all of 

the rapid information uses that we have to live and survive in this 

world today in real time. And I think then, well—and we have suggested this in our recommendations. Maybe we need to couple the 


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57

number with a biometric or some sort of system of making it really 

stronger. 

None of this takes away from the uses that it has today, and if 

we control the privacy aspects by limiting the exploitation of the 

number, I think we have done a good thing. And I think that puts 

us in the right place because even if—and, again, I am not suggesting a national identification card. That is not—but even if 

someone went that way, how would they ever start that process 

without starting with the Social Security number first? And it is 

already here. 

So no matter where we go, we move out from this point. So I 

think just logic tells us we are in the right place right now on this 

issue. 

Mr. POMEROY. Your ongoing counsel is going to be very helpful 

to the Subcommittee. Thank you. I yield back, Mr. Chairman. 

Chairman SHAW. I think Big Brother, if he is not already here, 

he is on his way. 

Mr. HUSE. Well, no, I think the balance, Mr. Chairman—and you 

are absolutely right. It is an obligation on us, though, that it 

doesn’t become Big Brother. But, on the other hand, we have to 

make sure that there is enough there to keep us secure. That is 

a huge obligation. 

Chairman SHAW. With every bit of security, there is a loss of 

rights. We know that. And it is a question of finding the right 

trade-off. People lose rights when we put up metal detectors to 

come into this building or the Capitol. When I came here 20 years 

ago, we didn’t have that. There was no security, hardly, just a policeman at the door. 

Mr. Lewis. 

Mr. LEWIS. Yes, thank you, Mr. Chairman. 

Inspector, recently I forwarded a letter to your office that was 

from the Circuit Court Clerk in Jefferson County, Kentucky, with 

his concern about the State of Kentucky requires a Social Security 

number for an individual to receive a driver’s license there. You 

mentioned there——

Mr. HUSE. Yes, and it is not alone in that, sir. I think most 

States do. 

Mr. LEWIS. And he wanted—and I would like a comment from 

you. Is there something that the State or Federal Government can 

do to try to close these loopholes for fraudulent Social Security 

numbers and those individuals that are here maybe on a B1 or B2 

tourist visa to limit their access to those numbers or—well, just 

some comments on how the States could work with the Federal 

Government to try to deal with this. 

Mr. HUSE. On the first part of your question, we really do need 

to work closer with State and local governments on these issues. 

That is a fact. And even in looking at dealing with the Social Security number itself, we have decided that we have to change our approach and really participate in as many of these local, county, 

State endeavors, task forces that are brought up under the aegis 

of a local sheriff, or what have you, as we can. And we have adjusted our resources to start to do that. 

But all of the State licensing registries of motor vehicles, secretaries of State, belong to the National Association of Automotive 


E:\HR\OC\D410A.XXX
58

Administrators—is that the right title? But we have received, almost at the same time we learned of your interest, Mr. Lewis, a 

letter from their national director over in Alexandria, and they 

have asked us to work with them. So we are going to do that, and 

I know they have sent a similar letter to Commissioner Massanari. 

And I think this is a good place to start, where we start to look 

at the common problems here, the interlocking dependence that we 

all have now with the Social Security number. It has gone way beyond just a Federal issue. And I think that puts obligations and 

burdens and responsibilities on us, and we are going to do that. 

The last part as to this whole visa issue, I think the President 

has spoken about this this week and formulated a task force just 

to look at foreign—I forget the title. Some of these titles are beginning to blur, they are so similar. But it will look at visas and why 

they are issued and who gets them and who should. And I think 

if we enforce the rules on visas on the issuing side and make them 

more valid, and then we link INS and Social Security Administration together in real time for cross-verification, as Commissioner 

Massanari suggested, we fix some of this because then that will 

take out the counterfeit or the phony or the illegitimate person trying to get a driver’s license. 

Mr. LEWIS. Very good. Thank you. 

Chairman SHAW. Mr. Hulshof? 

Mr. HULSHOF. Thank you, Mr. Chairman. 

Following up, I think you may have even answered my question, 

Mr. Huse, but let me put it maybe in a different way, because you 

have described for us the process that a non-citizen would undertake to obtain a Social Security number. As you described, SSA has 

to rely primarily on documents from the Immigration and Naturalization Service. I hesitate to put the question to you in this way, 

but what is the weakest link in the verification process? Is it on 

the visa side or the lack of sharing information between INS and 

SSA? How can we shore up that paper verification process? 

Mr. HUSE. Well, we have been looking at that. That is probably 

the most vulnerable area, as you have correctly identified it. 

There are two aspects to this, and this has been recognized for 

some time. We have been engaged in an effort now for 2 years, to 

my knowledge, to try and improve the interaction between INS and 

SSA. There are plans. These plans, of course, are resource-dependent and they get postponed or rescheduled based on other exigencies, and that is where I think we have to reallocate some of our 

attention. But, clearly, we have to make those events much closer 

in real time. We are headed there. 

On the other hand, the other part of this is we are driven, or 

used to be driven, before September 11, by customer service concerns, that, you know, we want to get this done in 5 days, nobody 

should have to wait any longer than 5 days for a card. We have 

all of these—and, you know, the truth is the balance of people who 

come to receive a Social Security number are legitimate, honest 

people, whether they are U.S. citizens or visitors from abroad. That 

is the truth. And they want to go to school or they want to work 

or do whatever they are here for. 

The only answer is to make it a one-step in real time verification. 


E:\HR\OC\D410A.XXX
59

Mr. HULSHOF. Would the Chairman permit one additional question? 

Chairman SHAW. Yes. I didn’t set the clock. 

Mr. HULSHOF. Let me ask you this: As much as you can comment, Mr. Huse, it has been reported that one of the perpetrators 

of the September 11 attack had gotten the Social Security number 

of a woman who had died, who was deceased. 

Mr. HUSE. That is correct. 

Mr. HULSHOF. Have you been able or has law enforcement—how 

was that accomplished? How was that individual able to obtain 

that deceased individual’s Social Security number? 

Mr. HUSE. Exactly where that person—who, incidentally, was the 

roommate at one time of the individual Mr. Hayworth was talking 

about indicted in Arizona this past week. Where that man got that 

deceased lady’s Social Security number exactly, we are not sure. 

But we do know that there are many ways to get those. They are 

posted on the Internet. As you learned, the death register is sold 

to many commercial entities. That information is out there. You 

can buy it as a record and just look them up. 

If I could, Mr. Chairman, just correct one thing for the record. 

I said that all had Social Security numbers. We don’t know that all 

of them had Social Security numbers. We know that all had multiple identifications, and some had multiple Social Security numbers of the 19. My investigative chief has accurately corrected me, 

and I would not want to be in error. 

Mr. HULSHOF. I yield back. 

Chairman SHAW. Our staff corrects us, too. 

Mr. HUSE. Well, I need a lot of correction. 

Chairman SHAW. Sometimes I think we get too much direction 

from our staff. 

[Laughter.] 

Chairman SHAW. Mr. Collins? 

Mr. COLLINS. Thank you, Mr. Chairman. For me at home, I have 

the last word. It is always, ‘‘Yes, ma’am.’’

[Laughter.] 

Mr. COLLINS. Mr. Huse, I read just a blip of a news article—and 

I did not get the chance to read the whole article—that indicated 

that in the anti-terrorism bill there was a requirement for a national ID or an ID number to be put forth on anyone coming into 

this country as a non-citizen. Are you familiar with that? 

Mr. HUSE. I am not familiar with all of the terms of the bill. I 

do not know if we saw that or——

Mr. COLLINS. It said it was tucked away in the bill and that it 

would require a special ID number for those who enter this country 

as non-citizens. I am going to dig into that a little further, but I 

think that would be an interesting concept because I really do not 

see the need for Social Security numbers for a lot of people who 

come into this country, particularly as a student. I mean, why 

would they need a Social Security number? They are not going to 

work. Some type of ID number would be fine. And like the Chairman, I think there should be some distinction between citizens and 

non-citizens when it comes to a Social Security number also. 

I want to ask a question about the work that is going on in New 

York and in Washington. I know you all are very active in working 


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60

to assist in processing claims. Are you taking the list of missing 

persons and going ahead and putting together potential information for those people, or are you waiting for an application to come 

in to put the information together? 

Mr. HUSE. I am not probably the person to—that is on the operation side. 

Mr. COLLINS. I should have asked Social Security, yes. 

Mr. HUSE. You are looking at assisting the victims. 

Mr. COLLINS. Yes. They have a list of missing persons, and as 

they identify them, then the identification is confirmed. 

Mr. HUSE. Right. 

Mr. COLLINS. But are we, in preparation for the anticipation of 

the confirmation of those missing persons, doing anything preliminary work to make sure that we can expedite their claims? Also, 

are we reducing the possibility of fraud? 

Mr. HUSE. I am sure someone from the—we will get that question to Acting Commissioner Massanari, and they will answer you. 

I am sure they are, but I—— Mr. COLLINS. I think that could help in reducing the possibility 

of fraud. 

Mr. HUSE. Well, and that is why, again, staff—we are taking the 

list of victims as they are verified from the FBI, and we are incorporating them in our records. And as a matter of fact, this past 

week we have had our first case, as reported in the New York 

Times, of an individual trying to make a claim on benefits, Social 

Security benefits, fraudulently claiming that she had lost family 

members in the World Trade Center. And we will vigorously prosecute those cases. Trust me. 

Mr. COLLINS. Good. Great. You need any help? 

We handle things a little differently in prosecution in some areas 

of the country than others. Thank you for your time. Thank you for 

your work you do. You have testified before this Committee on a 

number of occasions, and it has always been a pleasure, and it has 

been very informative. We appreciate your work. 

Mr. HUSE. Thank you, sir. 

Chairman SHAW. Mr. Huse, just a couple of points that I do want 

to discuss with you. Have you done an assessment as to what is 

being done, what precautions are out there to protect the employees of the Social Security Administration? 

Mr. HUSE. I have, Mr. Chairman, and I have communicated my 

concerns to Acting Commissioner Massanari as I have looked at 

that. We certainly have looked at all kinds of issues, the physical 

security of our facilities and operations, also the issue of threats to 

our employees as a result of trying to do their jobs. And, of course, 

the more we have internal controls, the likelihood that these 

threats increase. So in both instances, we have communicated 

those to the Acting Commissioner Massanari. 

Chairman SHAW. Okay. I won’t ask you the results of that because I don’t think that would be proper in a public hearing. 

We thank you for the job that you do, and you have certainly 

been a friend of this Committee. We appreciate it. 

Also, I am going to make a part of the bill that we are presently 

contemplating on the uses of Social Security numbers, I am going 

to be considering putting some identifier with the number desigVerDate Jan 17 2002 05:44 Feb 20, 2002 Jkt 077410 PO 00000 Frm 00064 Fmt 6633 Sfmt 6602 E:\HR\OC\D410A.XXX pfrm03 PsN: D410A

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nating the citizenship status as well as the visa status of non-residents or non-citizens of this country. 

Mr. HUSE. I think that is a good idea. 

Chairman SHAW. Thank you very much and this hearing is adjourned. 

[Whereupon, at 12:27 p.m., the hearing was adjourned.] 

[Questions submitted from Chairman Shaw to Mr. Huse, and his 

responses follow:]

Social Security Administration 

Office of the Inspector General 

Baltimore, Maryland 21235-0001

November 30, 2001

1. Congresswoman Sue Kelly in her testimony discussed what she sees as a ‘‘government loophole’’ that makes identity theft easier—namely, the Social Security Administration not gathering and distributing death information more timely and utilizing technology, and also suggesting that Social 

Security numbers be permanently deactivated. What do you think of the 

points Ms. Kelly raises? Can SSA do better? Is deactivating SSNs feasible 

or desirable? 

I believe the point raised by Congresswoman Kelly about the Social Security Administration (SSA) not gathering and distributing death information more timely is 

valid. SSA is considering ways to improve the timeliness of States’ reporting of 

death information. SSA has established pilots with several States to determine the 

feasibility of having death records electronically transmitted to SSA within 48 

hours. My office plans to review the Agency’s results and plans for this process. 

While I agree that SSA’s release of death information could be timelier, I am also 

concerned with the accuracy of death information. Our audit work has revealed systematic errors in the Death Master File (DMF), and we have recommended steps 

that SSA can take to improve the reliability of this critical data. Among these recommendations were matching the DMF against auxiliary benefit records to ensure 

that individuals receiving benefits in one system are not listed as deceased in another, and reconciling 1.3 million deaths recorded in SSA’s benefit payment files 

that do not appear in the DMF. We are faced with striking a balance between speed 

and convenience on the one hand and accuracy and security on the other. In the 

post-September 11th environment, we must be particularly cautious in striking that 

balance, and any attempt to accelerate the death reporting process must be undertaken in full awareness of the importance of accuracy. 

With respect to deactivating the SSN of deceased individuals, I have several concerns as to the practicality and feasibility of this proposal. One such issue is the 

reliability of the DMF. In our July 2000 audit report entitled Improving the Usefulness of Social Security Administration’s Death Master File (A–09–98–61011) we found that about 1.3 million beneficiaries’ deaths were not recorded on the DMF. 

The report also noted that SSA does not verify the accuracy of death reports on the 

DMF for non-beneficiaries’ thus, the risk of ‘‘deactivating’’ the numbers of living persons, or failing to deactivate the numbers of deceased individuals poses a significant 

problem. Another issue is what would constitute ‘‘deactivation’’ because SSA uses 

SSNs for deceased persons for various legitimate purposes. For example, SSNs are 

the basis for Social Security claims by surviving spouses and children of the deceased. I believe further study would be needed before seriously contemplating the 

scope and implications of deactivating SSNs. 

2. Are there any other measures that you might suggest to help provide 

for increased homeland security? 

Within the context of the Social Security Administration and its programs, the 

most valuable contribution that SSA, my office, and the Subcommittee can make is 

to better protect the integrity of the Social Security number at its three stages of 

existence: upon issuance, during the life of the number holder, and after the number 

holder’s death. Of these, the most critical is the first, and I would refer you to my 

testimony of November 1 and November 8 of this year for detailed discussions on 

this point. 

3. Given the increase in SSN fraud and identity theft, what role has your 

office taken in prevention and enforcement related to SSN misuse. Are 

there any federal agencies that primarily have the task of combating SSN 

misuse and ID theft? 

Under the Identity Theft and Assumption Deterrence Act of 1998, the Federal 

Trade Commission (FTC) is the central clearinghouse for identity theft complaints. 

The Identity Theft Act requires the FTC to log and acknowledge such complaints, 


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62

provide victims with relevant information, and refer their complaints to appropriate 

entities. Both FTC and SSA established a website (www.consumer.gov/idtheft/ and 

www.ssa.gov/pubs/idtheft) that includes a hotline number for identity theft victims. 

However, given our obligation to protect the integrity of the Social Security number (SSN), we have not limited ourselves to referring cases and providing information. We are a member of the Identity Theft Subcommittee of the Law Enforcement 

Initiatives Committee of the Attorney General’s Council on White-Collar Crime. We 

played a key role in the Treasury Department’s Summit on Identity Theft in 2000, 

and hosted a national workshop on Identity Theft which was broadcast nationally 

on C–SPAN earlier this year. We participated in a national law enforcement conference on implementation of the 1998 legislation, met with U.S. Sentencing Commission officials to discuss sentencing guidelines for identity thieves, and made a 

presentation at the Canadian Identity Theft Conference to share our work with Canadian, British, and Australian government officials. 

To combat Identity Theft on the front lines, we launched SSN misuse pilot 

projects in five cities across the nation to process complaints referred from the FTC 

and elsewhere. In Fiscal Year 2000, these Task Forces opened 176 investigations, 

resulting in 116 Federal and State convictions. We have testified before various 

House and Senate committees and subcommittees on SSN misuse and Identity 

Theft on numerous occasions, and made a number of legislative proposals to further 

reduce incidents of SSN misuse and Identity Theft. 

In addition to this external work, we have issued 13 Social Security number (SSN) 

misuse and identity theft related reports over the past several years. (www.ssa.gov/

oig/hotreports.htm). Several of these reports outlined the role SSNs play in the commission of identity fraud crimes and highlighted some of the vulnerabilities found 

within SSA’s document verification process. For example, we detected SSNs issued 

to individuals based on counterfeit evidentiary documents and concluded that SSA’s 

current verification process is not sufficient to ensure the validity of evidentiary documents presented for original or replacement cards. To effectively reduce the occurrences of improper SSN attainment, we recommended that SSA employ effective 

front-end controls in its enumeration process. 

4. In order to combat SSN misuse, can you tell us what resources you 

have requested to address this issue? Have you received any of the money 

Congress has approved to fight terrorism? 

With respect to the second question, no, we have not received any of the funds 

earmarked for combating terrorism. With respect to what we have requested, we 

have proposed the devlopment of a multi-disciplined SSN misuse team that would 

combine the talents of forensic auditors, investigators, and attorneys to identify patterns and trends and better target audit work to address the SSN enumeration business processes and systems at Social Security. We are confident that we can create 

a comprehensive approach to allow for the most effective way to address this issue 

and provide assistance to SSA, Congress, the public, and law enforcement. To staff 

this initiative, we requested 114 staff, specifically, 88 investigative staff, 14 forensic 

auditors, 10 attorneys, and 2 computer specialists. The total estimated funding that 

would be required to support this initiative would be a two-year, $14,000,000 increase; a $7,000,000 increase in Fiscal Year 2002, followed by an additional 

$7,000,000 increase in Fiscal Year 2003. 

5. Are there automated systems enhancements which SSA should implement to improve SSN verification and help eliminate identity theft? 

In our September 2001 audit report entitled Replacement Social Security Number 

Cards: Opportunities to Reduce the Risk of Improper Attainment and Misuse (A–

08–00–10061), we recommended that SSA develop regulations and incorporate appropriate system controls to limit the number of replacement SSN cards an individual can receive during a 12-month period to 3 and over a lifetime to 10. SSA 

agreed to look carefully at the issuance of replacement cards to ensure that it took 

every advantage of systematic controls, such as limits, that might allow it to more 

effectively identify risk factors and avoid the issuance of multiple replacement cards 

in questionable situations. 

In our September 2001 report entitled Audit of Enumeration at Birth Program 

(A–08–00–10047), we pointed out instances of multiple SSNs being assigned to 

newborns and recommended that SSA enhance its duplicate record detection and 

prior SSN detection routines to provide greater protection against the assignment 

of multiple SSNs. While our review focused on SSNs being assigned to newborns, 

it should be noted that the routines in question are used to screen all applications 

for SSNs, regardless of the age of the applicants. SSA has indicated that its 5-year 

Systems Plan Steering Committee will address our recommendations during its next 

meeting. 


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Since the events of September 11th, SSA created the Enumeration Response team 

to develop proposals to strengthen the enumeration process. My office is a partner 

on this team. As a result of the team’s work, SSA approved a recommendation to 

enhance its Modernized Enumeration System to provide an electronic audit trail, regardless of the mode used to process applications. Evidence information recorded on 

applications that we reviewed during past audits and evaluations was insufficient 

for verification. This information is critical if we are to effectively use fraud preventative techniques, such as data mining. 

6. Allegations received by the SSA Hotline involving potential fraudulent 

SSN use for identity theft increased from 62,000 cases in Fiscal Year 1999 

to over 90,000 in Fiscal Year 2000—almost a 50 percent increase in just one 

year. Can you update this data for us? 

Keeping in mind that the numbers for 1999 and 2000 represent a combination of 

pure SSN misuse allegations and program allegations, which experience has shown 

us frequently involve SSN misuse, the following are the numbers for 2001: We received 115,101 total allegations, of which 63,941 were pure SSN misuse allegations, 

and 38,883 were program allegations which may also have involved SSN misuse, for 

a total of 102,824. 

7. Why doesn’t SSA require a photo-id when an adult applies for an SSN? 

Have you recommended that a photo-ID be required? 

SSA doesn’t require a photo-ID when an adult applies for a SSN card because not 

everyone has a photo-ID. The general rule for identity evidence is that the document 

must have been established at a later time and for a different purpose than the 

birth record, and be of recent issuance so as to establish the individual’s continued 

existence. 

When an adult United States citizen applies for an original SSN they must have 

a face-to-face interview in a local field office and answer questions pertaining to the 

reason they have reached adulthood without obtaining a SSN. They must also submit a birth certificate and an identity document. If the applicant is either a United 

States citizen or foreign born alien, they are required to submit proof of age and 

identity, and proof of either (1) work-authorized lawful alien status, or (2) lawful 

alien status and a valid non-work reason. 

We have not specifically recommended that SSA require a photo ID before issuing 

a Social Security number. 

8. Has there been any thought of giving a different type of SSN to noncitizens? Would a different identifier help institutions, such as universities, 

manage and follow the number of foreign students? For organizations that 

rely solely on the SSN as way of legitimizing a person’s status, would a separate number encourage an organization to ask for more proof of identity 

and purpose? 

I am not aware of any SSA efforts to assign a different type of SSN to noncitizens. 

Instead, SSA attempts to prevent and reduce SSN misuse by limiting the issuance 

of original and replacement SSNs to noncitizens with work authorization or a valid 

nonwork reason. 

While a different identifier (distinct series of SSNs) would help institutions, such 

as universities, manage and follow the number of foreign students who are conducting their activities in a legitimate manner, it would likely be of minimum value 

in tracking those individuals who enter the country under pretense. Individuals who 

have other intentions, such as terrorism, would likely circumvent the system and 

avoid being associated with a number designed to identify and track them. 

If SSA issued a separate number for noncitizens, it would provide notice that this 

number was for very specific purposes. Whether this would result in any meaningful 

change would be dependent on the level of diligence that organizations used to 

verify that the correct individual was using the number for an authorized purpose. 

9. You mention in your testimony that your office has completed several 

audits regarding SSA’s enumeration process. You touch on some of the improvements to the process in your testimony, including verifying the personal identification evidence submitted by SSN applicant. Are there any 

other process improvements, both short and long-term you could recommend, especially with regard to those individuals who are not citizens? 

How quickly would it take to make such improvements? Would SSA support these? 

SSA is working with INS and the State Department on a program that would provide for the enumeration of noncitizens at the port of entry (‘‘Enumeration at Entry’’

program). We believe that this program will be extremely beneficial once fully implemented. However, we are concerned that full implementation could be years 

away. 


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64

Because many cases of identity fraud involve improperly obtained replacement 

SSN cards, we believe SSA needs to develop a combination of regulations and systems controls to limit the number of replacement cards an individual can receive 

during a specified period. Under current SSA policy, any individual can obtain up 

to 52 replacement SSN cards in a year. SSA has recently formed an inter-component 

workgroup to look at the issuance of replacement SSN cards to ensure that SSA 

does not issue multiple cards in questionable situations. 

SSA could expand its data matching activities with other Federal, State, and local 

government entities and explore other innovative technologies such as biometrics. 

Although SSA has a number of matching agreements in place with State agencies 

(for example, Bureaus of Vital Statistics) we believe SSA could benefit from expanding computer matches with States and other Federal agencies to include individuals 

who had benefits terminated due to confirmed or suspected fraud. While the use of 

biometrics may present privacy concerns, given the tragic events of September 11, 

we must seriously weigh these concerns against the need for protecting our critical 

assets. Although biometric technologies are available, I am unsure how quickly SSA 

could implement such tools. 

10. What type of role do you envision SSA having with the Immigration 

and Naturalization Service (INS)? How could SSA work with the INS in improving this process? 

We hope that SSA will continue to collaborate with the INS to develop a better 

understanding of the extent that immigration issues contribute to SSN misuse and 

identity theft. SSA, INS and the State Department are working on agreements that 

will enable INS and the State Department to collect enumeration data from noncitizens entering the United States. Although SSA will still process the SSN applications, the agencies believe this initiative will significantly reduce the possibility of 

SSA accepting counterfeit documentation and will eliminate duplicate contacts that 

noncitizens now must make to obtain SSNs. Until full implementation of this initiative, we continue to believe that SSA should obtain independent verification from 

the issuing Agency (for example, INS and State Department) for all evidentiary documents submitted by noncitizens before issuing an original SSN. 

SSA and INS are also working to provide all field offices on-line access to INS’

Nonimmigrant Index System. This system would allow SSA personnel to verify documents submitted by noncitizens. Currently, SSA can only verify documents submitted by noncitizens with alien registration numbers through the Systematic Alien 

Verification for Entitlements program. 

Since the events of September 11th, SSA’s Enumeration Response Team recommended that SSA join a task force with the INS, State Department, and the Office of Refugee Resettlement to work out procedures for verifying noncitizen documentation. 

Ultimately, the success of SSA’s efforts will depend upon the priority it places on 

combating SSN misuse and identity theft and how successful it is in obtaining assistance and support from the INS. 

11. You stated in your testimony that an SSA employee processed an SSN 

and sold it to a suspected terrorist. How exactly was this accomplished? 

How did this employee get caught for his deed? What if anything can be 

done to prevent future occurrences? 

The Social Security Administration conducts a computer audit-based management 

review designed to detect suspicious patterns in the realm of employee computer access and transactions. In 1999, such a review revealed twenty initial SSN applications processed by a particular SSA employee that were suspicious. The District Office manager referred the case to the OIG, which initiated an investigation. The OIG 

quickly discovered that the twenty Social Security cards identified as suspicious 

were only the tip of the iceberg. In fact, some 163 suspect applications had been 

processed by this employee. Further investigation by the OIG, working with the 

FBI, and including information obtained from the Postal Service and the INS, determined that the SSA employee was processing fraudulent SSN applications which 

were in turn based on fraudulent INS documents. Because SSA cannot yet verify 

INS records in real time, this scam was detected only through the internal computer 

audit process and the OIG investigation, and by then, these fraudulently obtained 

Social Security cards were issued, sent to various post office boxes and then sold 

on the open market. 

This case is a clear example of the need to verify records produced in support of 

SSN applications, particularly INS records. In all of the 163 cases cited above, INS 

alien registration numbers were submitted as proof of identity and residency in support of the SSN applications. Investigation revealed that in all but a few of these 

cases, the alien registration numbers simply didn’t exist. It is critical that before 


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65

an SSN is issued, the documents presented in support of the application be verified, 

especially when the documents in question are INS documents. 

12. Is SSA required to keep copies of identification and citizenship evidence on file when it issues a SSN? Why not? 

SSA policy requires the visual examination of identification and citizenship evidence documents and the recording of this information on the SS-5 application. 

However, SSA does not require field office personnel to maintain copies of evidence 

on file. SSA maintains copies of the SS–5 on microfiche. Field office personnel copy 

suspect or fraudulent documents for review and referral purposes, not for documentation purposes. Since there were approximately 18.4 million SSN applications 

(original and replacement) for fiscal year 2001, hard copy storage of evidence of 

identity and citizenship status would likely be overwhelming. 

On November 1, 2001 the Acting Commissioner of Social Security approved several recommendations resulting from the work of the Enumeration Response Team, 

which SSA created to strengthen the enumeration process. This workgroup recommended that SSA expedite implementation of a pilot to photocopy or scan all documentary evidence submitted with SS–5 applications. The plan is to conduct an aggressive pilot, with broad scope, in at least 2 regions to determine the impact of the 

proposal. SSA plans to pilot this proposal in the New York and San Francisco regions, and it will include the following: 

• For original applications, interviewers will photocopy all documentary evidence 

submitted with SS–5. 

• Offices will maintain applications with the documentation in a holding file for 

a specified period of time. 

• The pilots will eventually test the utility of scanning and indexing rather than 

just photocopying evidence. 

13. I understand that the IG conducted an audit which focused on SSA 

pursuing matching agreements with New York and other States that use biometric technologies. The States which use this technology do so to combat 

fraud and identify ineligible recipients in social service programs. As you 

know, this technology is used for identification purposes by measuring 

unique characteristics such as fingerprints. In a recent audit report, you 

recommended that SSA pursue matching agreements with New York and 

the other States that are using this technology. Can you expound on this? 

What type of benefits and drawbacks if any would be gained by taking advantage of this technology? What program savings do you believe could result? 

In our January 2000 report entitled The Social Security Administration Is Pursuing Matching Agreements With New York and Other States Using Biometric Technologies, we recommended that SSA: (1) pursue a matching agreement with New 

York so the Agency can use the results of the State’s biometric technologies, and 

(2) initiate pilot reviews to assess the cost-efficiency of matching data with other 

States that use biometrics in their social service programs. At the time of our report, almost a dozen States were using or had plans to adopt biometric technologies 

in their social service programs. In adopting biometric technologies, States had deterred and detected individuals attempting to use multiple identities to apply for 

State benefits, and realized significant savings. For example, New York estimated 

savings of almost $400 million in the first 2 years of their program. 

The chief benefit of biometrics is that it offers a potentially foolproof means of 

verifying a person’s identity. The drawback is that it is perceived by some as an 

invasion of privacy. Without a matching agreement, we were precluded from investigating individual cases. Therefore, we did not measure direct program savings to 

SSA. However, we found that SSA paid individuals over $60 million in Social Security benefits who refused to participate in New York

f’s finger-imaging program.

[Submission for the record follows:]


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ERISA Industry Committee (ERIC) 

Washington, DC 20005–3509

October 31, 2001

The Honorable E. Clay Shaw, Jr. 

Chairman 

Subcommittee on Social Security 

U.S. House of Representatives 

1102 Longworth House Office Building 

Washington, DC 20515

Dear Mr. Chairman: 

The ERISA Industry Committee (ERIC), representing the employee benefits interests of major employers, fully supports the goal of the Social Security Number Privacy and Identity Theft Prevention Act of 2001 (H.R. 2036) to stem the proliferation 

of ‘‘identity theft,’’ and other violations of individual privacy, including those that 

may be involved in future terrorist attacks. However, H.R. 2036 as currently drafted 

would substantially interfere with the legitimate administration of employee benefit 

plans and seriously compromise the ability of employers to offer defined benefit pension plans, 401(k) accounts, prescription drug and other health and welfare benefits 

safely and efficiently to their employees and those employees’ families. 

The intention of H.R. 2036 in general, and Title II of the bill in particular, is to 

prevent misuse of social security numbers. Title II prohibits the ‘‘sale,’’ ‘‘purchase,’’

or ‘‘display to the general public’’ of an individual’s social security number. While 

the intention of that prohibition is clearly defined, the terms ‘‘sale,’’ ‘‘purchase,’’ and 

‘‘display to the general public’’ are not. Those ambiguous definitions risk making legitimate and beneficial uses of social security numbers a violation of Federal criminal law. 

ERIC understands that the intention of the bill’s supporters is not to prohibit legitimate uses of social security numbers. We have been working with staff to find 

a solution though more precise legislative drafting. ERIC looks forward to continuing to work with staff and with the Committee to effectively address the problem of identity theft without creating unintentional barriers to the provision of pension, health and other benefits to employees. 

Please do not hesitate to contact us for more information about this matter. 

Very truly yours, 

Mark J. Ugoretz 

President 

Janice M. Gregory 

Vice President

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