The Importance of Protecting Your Social Security Number
Your Social Security number (SSN) is a critical piece of personal information that can be used by hackers and scammers to commit identity theft and financial fraud. Initially created in the 1930s to track earnings and benefits, SSNs have become a universal security feature for various accounts, including credit cards, mobile phones, and retail services. CNBC Select explains how you can better safeguard your SSN and protect your identity.
Understanding the Risks
Getting hold of your SSN can give fraudsters access to your personal data, enabling them to open fraudulent credit card accounts, file false tax returns, and even take out loans in your name without your knowledge. The consequences can be severe, making it essential to take proactive steps to protect your SSN.
Identity Theft Protection Services
The best identity theft protection services can help you detect potential fraud early and prevent it from getting out of hand. Some top-rated services include:
- Aura: Offers comprehensive protection against identity theft, financial fraud, spam calls, online theft, scam websites, viruses, and malware. Plans start at $9 to $25 per month, billed annually. Aura provides VPN, 3-credit bureau monitoring, password manager, and instant credit lock.
- Identity Guard: Provides identity theft insurance of up to $1 million for eligible losses. Plans range from $6.67 to $17.99 per month for individuals and $10 to $23.99 per month for family plans, billed annually.
- IdentityForce: Offers dark web scanning and up to $1 million in identity theft insurance. Plans start at $19.90 per month or $199.90 per year for individuals and $24.90 per month or $249.90 per year for family plans.
- LifeLock: Provides one-touch credit freeze for all three credit bureaus, social media monitoring, and up to $1 million for attorneys and specialists if you’re a victim of identity theft. Plans range from $7.50 to $32.99 per month.
Freezing Your Credit
To prevent lenders from approving new credit lines, you can implement a credit freeze, which is free. You’ll need to contact Equifax, TransUnion, and Experian to freeze your credit reports.
Steps to Take If You’re a Victim of Identity Theft
- Place a fraud alert on your credit report by contacting one of the three major credit bureaus.
- Obtain a free copy of your credit report from each bureau and review for signs of fraud.
- Document all communication with financial institutions.
- Report the incident to the Federal Trade Commission’s Identity Theft Data Clearinghouse.
- Notify the police to aid in filing a claim with your identity theft insurance provider.
Recognizing Social Security Scams
Be cautious of scams where individuals claim to be from the Social Security Administration (SSA) and request your SSN or bank information. Common scams include:
- Confirming your information for benefits
- Claiming your number has been frozen due to criminal activity
- Requesting payment for alleged overpaid benefits
Frequently Asked Questions
What is a Social Security Number?
A Social Security number is a nine-digit number used to track an individual’s earnings and SSA benefits record.
Can You Change Your Social Security Number?
Yes, but only under limited circumstances, such as ongoing identity theft or domestic abuse. You’ll need to provide documentation and submit an SS-5 form to your local SSA office.
By taking proactive measures to protect your SSN and being aware of potential scams, you can significantly reduce the risk of identity theft and financial fraud.
