Your Social Security Number (SSN) is now your key to your information in today’s data age. Numerous private companies often ask for this nine-digit number, but knowing when you can refuse—and what will happen if you do—is important in safeguarding your identity as you go about conducting day-to-day transactions.
Your legal rights when disclosing SSN
Yes, you have the right to refuse to give your Social Security number to most private companies. Any individual can refuse to give their SSN when requested by a private company. This is because the Social Security Act itself does not clearly state private sector usage of SSNs. While governmental agencies are tightly regulated under the Privacy Act of 1974 for SSN collection, private companies have varying restrictions.
But this denial is qualified by a necessary proviso: the company can lawfully deny you service if you will not acquiesce in their demand. This places a realistic constraint on your theoretical right to refuse your SSN.
When businesses can lawfully demand your SSN
Although you usually have the right to refuse, federal law does compel private companies to accept SSNs in certain situations:
- When you are a party to a transaction that must be reported to the IRS
- When conducting financial transactions subject to federal Customer Identification Program rules
- When opening bank accounts (to meet the USA PATRIOT Act requirements)
- For tax reporting, especially for employers
Banks, in particular, have legitimate legal purposes for requesting your identity with your SSN when opening accounts. Employers also require your SSN for tax reporting.
Why businesses ask for SSNs
Private companies ask for SSNs for legitimate purposes:
- Identification verification and protection against fraud
- Credit history and financial analysis
- Ability to collect debts
- Keeping records and accounts
Medical professionals, for instance, may ask for SSNs for billing patients’ insurance and possible collections, while retailers and utility providers can use them to perform credit checks or identify customers.
Hazards of sharing your SSN
The broad usage of SSNs presents grave concerns for privacy and security:
- Identity theft risk rises with every disclosure of your SSN
- Your SSN may be used as a master key to sensitive personal data
- Corporate data breaches may put your SSN into criminal hands
- Web databases and personal locater services make SSNs more accessible than ever
How to refuse to give your SSN
If requested by a business that has no legal authority to request it, use the following methods:
- Ask them why they need it and how it will be used
- Provide them with an alternative ID such as a driver’s license number
- Be firm but courteous in stating your privacy issues
- Ask them to give you another ID number
What to do if a business won’t listen
If the business won’t listen and still insists on your SSN and you don’t want to give it to them:
- Determine if they have a valid legal reason for requiring it
- Determine if the service is necessary or you can do without
- Ask them about security practices they employ to safeguard your data
- Think if the advantage is worth the privacy threat
While you do have a right to decline to give your SSN to most private companies, it’s weighed against theirs to decline services. Knowing under what circumstances SSNs are officially required and under what circumstances they’re asked for convenience reasons helps you make proper decisions about giving out this privileged information. Through asking about inappropriate requests and making alternatives available where needed, you can more adequately safeguard your anonymity while still remaining capable of taking advantage of essential services.
