Today, we will examine proposed legislation that would prohibit Federal, State and local government agencies from using social security numbers as identification numbers, except for social security and tax purposes. The proliferation of personal information on the Internet in combination with the broad use of the social security number has caused a growing concern over protecting citizens against a rising tide of identity thefts and associated frauds. When the social security numbering system began in 1936, its purpose was to identify individuals who receive benefits from the social security retirement system. Over the years, however, the use of this number has expanded far beyond its original intent. Today, the social security number is used as a personal identification number by state and local agencies, utility companies, universities and a proliferation of private businesses.
Credit bureaus use the number to maintain individual consumer credit histories.
State income tax officials use it to identify tax filers. Numerous businesses that sell personal information, offer financial services and provide health care also rely on the social security number. These companies use the number to assess personal credit ratings, locate assets, maintain health records, and ensure that individuals comply with a variety of rules and regulations. Clearly, there is a need to protect personal information. There is an equally compelling need to ensure the integrity of Federal programs.