Vice President Gore, Senator Feinstein Seek Privacy Protection by Banning Sale of Social Security Numbers for Profit
June 8, 2000

Washington, DC – U.S. Senator Dianne Feinstein (D-Calif.) today introduced legislation, developed with Vice President Al Gore, to protect a person’s privacy by making it a federal crime to sell Social Security numbers for a profit.

Senator Feinstein and Vice President Gore are seeking to halt the sale and purchase of Social Security numbers – a key to a person’s identity – due to an explosion of illegal uses of these numbers in identity theft, credit card fraud, stalking and other violent crimes.

The Vice President announced the legislation at the Los Angeles County Sheriff’s Department Identity Theft unit in Southern California, while Feinstein introduced the bill in the Senate. A companion bill was introduced by Congressman Ed Markey (D-Mass) in the House of Representatives..

“Once criminals gain access to a potential victim’s Social Security number, they can turn that person’s life upside down. They can use this information to fraudulently obtain credit cards and in some very sad cases, locate, stalk and kill a victim, ” Senator Feinstein said. “This legislation is very simple -- it prevents the sale of Social Security numbers in order to safeguard a person’s personal information and will, in some cases, help protect and save lives.”

Today, the Federal government uses the Social Security number as the taxpayer identification number, the Medicare number, and as a soldier’s serial number. Many states also use the numbers as identification for drivers’ licenses, fishing licenses, and other official records. Financial institutions use Social Security numbers to establish personal identification for credit and it is requested by telephone companies, gas companies, even video stores.

“Though never intended to be anything more than a tool for the Social Security Administration to track personal earnings, the Social Security number has become a de facto national identifier. When a person’s Social Security number is in the wrong hands, that individual is extremely vulnerable, subject to having their whereabouts tracked and their identity stolen.”

The United States is facing an explosion in identity theft crimes in part due to unrestricted traffic in Social Security numbers. The Social Security Administration recently reported it had received more than 30,000 complaints regarding misuse of Social Security numbers last year, most of which had to do with identity theft. This figure has increased from 11,000 complaints in 1998 and just 7,868 in 1997. In total, Treasury Department officials estimate that identity theft causes between $2 and $3 billion in losses each year -- just from credit cards alone.

The Social Security Number Protection Act of 2000 will hold abusers criminally liable by making it a civil and criminal offense for a person to either sell or purchase Social Security numbers. Under the bill, the Federal Trade Commission is given rulemaking authority to determine appropriate exceptions, for example, when a person’s health or safety is at risk, when the purchase or sale is necessary for law enforcement or national security reasons, or when the individual provides affirmative, voluntary consent.

“Sometimes, the unrestricted sale of personal information can have tragic results. Amy Boyer, a twenty-year old dental assistant in New Hampshire, was killed by a man who tracked her down through the online personal-data service Docusearch.com.

“Another example is that of Michelle Brown of Hermosa Beach, California. On January 12, 1999, Michelle’s life was turned upside down when identity thief used her name and Social Security number to charge over $50,000 worth of goods and services. The perpetrator was able to purchase an automobile, phone service, utilities, store credit cards, and even a liposuction procedure. The identity thief was also able to obtain a duplicate driver’s license in Michelle’s name. Michelle also found out that there was a warrant out for her arrest in Texas for drug smuggling. The Drug Enforcement Agency had “Michelle Brown” listed as an informant and the identity thief also gave Michelle’s name to federal authorities in Chicago where she was taken in by authorities. Michelle has spent hundreds of hours attempting to repair her credit history and still suffers from the experience.

"My reservations about the trafficking in Social Security numbers have deep roots. In 1997, I introduced the Personal Privacy Information Act (S. 600) with Senator Charles Grassley after watching in dismay as one of my staff downloaded my Social Security number off the Internet in less than a minute.

“Today, not much has changed. For a mere $49, one can go on-line and purchase a person’s Social Security number from a whole host of web businesses – with no questions asked. Thus, a criminal who purchases your Social Security numbers is well on his way to fraudulently obtaining numerous services in your name.”