A second hearing of the House Ways and Means Social Security Subcommittee was held on May 24, 2023. Focused on the role of the Social Security Administration (SSA) in combatting identity fraud, the hearing included the following witnesses: Sean Brune, Deputy Commissioner for Systems and Chief Information Officer, SSA; Katie Wechsler, Co-Executive Director, Consumer First Coalition; Margaret Hayward, private citizen and mother of three; Robert Roach, President of the Alliance for Retired Americans; and Jeffrey Brown, Deputy Assistant Inspector General of the Office of Audits, Office of the Inspector General, SSA.

The witness testimony focused on the challenges in protecting Social Security Numbers (SSNs) from theft by bad actors who use those numbers to commit financial crimes. While SSNs were initially easier to keep secret because of their narrow use, they are now required by both the government and the private sector to verify an individual’s identity for a variety of reasons. More widespread use of SSNs inevitably results in more instances of identity theft.

Katie Wechsler of the Consumer First Coalition described synthetic identity fraud. According to the Federal Reserve, this type of fraud involves the use of a combination of personally identifiable information (PII) to fabricate a person in order to commit a dishonest act for financial or personal gain. Synthetic identity fraud, which often involves the use of SSNs, can be used to gain employment or housing. It can also be used to obtain goods or services with no intent of repayment.

Ms. Wechsler explained that the Consumer First Coalition worked with the SSA to create the electronic Consent Based Social Security Number Verification (eCBSV) Service to combat this type of fraud. According to the SSA website, this fee-based service “allows permitted entities to verify if an individual’s SSN, name, and date of birth combination matches Social Security records.” While eCBSV shows promise in helping to mitigate synthetic identity fraud, Ms. Wechsler expressed concerns that increases in fees for using the service would discourage use.

Compelling testimony regarding the use of children’s SSNs to perpetrate fraud was offered by Margaret Hayward who described the ordeal she faced when her newborn daughter’s Social Security card was lost in the mail. Fearing that the card had been stolen and would be used to open financial accounts in her daughter’s name, Ms. Hayward attempted to act quickly to protect her daughter’s identity. She elicited help from the SSA only to be frustrated by bureaucratic hurdles and a lack of transparency about what could be done to help her daughter or how to do it. As a result of Ms. Hayward’s testimony, both Republicans and Democrats on the subcommittee pressed Sean Brune of the SSA to find ways to alleviate the concerns of parents like Ms. Hayward who worry that misuse of their children’s SSNs will wreak havoc on their credit for years to come.

Two bipartisan bills were introduced in the wake of this hearing. If passed, H.R. 3784 would require the SSA to provide victims of identity theft with a single point of contact at the agency when the misuse of their SSN results in the need to resolve an issue or issues with the SSA or when their Social Security card is lost in the mail and H.R. 3667 would require the SSA to issue a new SSN to children under the age of 14 when their SSN card has been compromised while being mailed.