Why Safeguard Your Social Security Number?

Keeping your Social Security number secure can help you protect against identity theft, a crime that costs billions of dollars annually. The more people who have access to your number, the greater the chance someone can steal your identity. This article takes a look at how to safeguard your identity and Social Security number.

Who Needs Your Social Security Number

The purpose of your Social Security number is to track wages and benefits. Social Security numbers are needed for tax purposes and by employers, banks and investment firms. Social Security numbers are also required to receive Social Security and the benefits of other government programs.

How Someone Can Obtain Your SSN

If someone obtains your Social Security number, they can use it to apply for credit cards and buy things in your name--without your knowledge. It can sometimes be months before you become aware someone has assumed your identity. Social Security numbers can be obtained if your purse or wallet is stolen, by rifling through your mail or by digging through a dumpster or trash can for personal information. Hackers also can steal your Social Security number through unsecured websites.

Questions to Ask

If your Social Security number is requested, think twice before supplying it. Ask why it is required, what it will be used for, what will happen if you do not provide it and what law requires you to reveal private information.

Protect Yourself

Protect yourself from identity theft by keeping your Social Security number secret. Do not keep your Social Security card in your wallet or purse. Store it in a secure place, such as a safe or safety deposit box. Shred documents that have your Social Security number on them instead of simply throwing them in the trash.

If Your Security Has Been Compromised

If your security has been compromised, contact your creditors and inform them. In some cases, you may have to replace your Social Security card. Also, contact agencies such as the Federal Trade Commission, the Internal Revenue Service and the Internet Crime Complaint Center. File a compliant and alert them your identity has been stolen. Contact the FTC at www.ftc.gov/bcp/edu/microsites/idtheft; the IRS Identity Protection Agency at 1-8000-908-4490 and the Internet Complaint Center at www.ic3.gov.

Monitor Your Credit

It never hurts to monitor your credit at least once a year. You can receive a free credit statement at www.annualcreditreport.com.