Social Security was established in 1937 to collect funds from workers that are then used to generate payments for medical care, retirement and disability programs. Workers in the U.S. are required to carry Social Security or identification numbers issued according to an overall numbering system.
All Social Security numbers include three digits, a dash, a two-digit set of numbers, another dash, and a final set of four digits. The official term used by the Social Security Administration to describe the numbering is "enumeration."
The first set of three digits in a Social Security number comprise a block called the "area number." This number indicates a geographic region. Residents of the northeast have the lowest numbers.
The second set of numbers, two digits set off by dashes, is the "group number." These digits are assigned by the SSA using a set formula for each state that alternates between odd and even numbers.
The last group of four digits create a simple "serial number" that provides additional digits so that identifications are unique. The number, which ranges from 0001 through 9999, is issued randomly according to available combinations at the time of assignment.
The SSA reports that many number myths exist. One of these holds that the "group" digits includes some sort of racial profiling. The SSA categorically denies any ties with the numbers and the applicants' race.