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Massive Social Security Number Fraud for Employment

Posted on Apr 23, 2006 by Tom Fragala

Using a SSN fraudulently to get employment is nothing new. But there’s a lot of new buzz surrounding the issue of “undocumented” workers stealing or using stolen social security numbers. This is not a small matter. If someone uses a SSN to obtain employment, they are committing a federal crime and it’s a felony. And it can cause huge, nasty problems for the person who had their identity stolen. Massive tax laibilities can be rung up, retirement benefits can end up being denied, and much more. If the worker commits a crime and gives the stolen identity to police, those crimes are now on the record of an innocent person. You could be denied employment, refused credit and jailed. And these crimes which are taking place by the thousands every day, could be prevented or discovered…but the government is ignoring them. The Star-Telegram reports

The Internal Revenue Service and the Social Security Administration routinely collect strong evidence of potential workplace crimes, including the names and addresses of millions of people who are using bogus Social Security numbers, their wage records and the identities of those who hire them.But they keep those facts secret.

The two agencies don't analyze their data to root out likely immigration fraud -- and law enforcement authorities can't do so because the agencies won't share their data. Privacy laws prohibit that, they say.The agencies also don't use the power that they have.

The IRS doesn't fine employers who repeatedly submit inaccurate data on workers. Social Security does virtually nothing to alert citizens whose Social Security numbers are being used by others. Evidence abounds within their files, according to an analysis by Knight Ridder Newspapers and The Charlotte Observer.

One internal study found that a restaurant company had submitted 4,100 duplicate Social Security numbers for workers. Other firms submit inaccurate names or numbers for nearly all their employees. One child's Social Security number was used 742 times by workers in 42 states.