Identity theft and use of Social Security numbers in particular are hot-button issues right now. No other form of personal ID plays such a central role in linking an individual’s most sensitive personal and financial information.
And because of the SSN’s widespread use as an identifier – and its misuse by identity crooks – there are growing efforts to restrict how SSNs can be collected, stored and displayed.
Only a few types of businesses are required to obtain a customer’s SSN, usually to supply the information to a government agency. But there is no law that prevents a business from asking for a customer’s SSN, and businesses are allowed to deny service to those who refuse. Yet why would you want to do that? There are other ways to identify customers, and you are setting up your business for trouble if you don’t safeguard the information.
Some states are adopting laws on how SSNs can be used and displayed. These usually involve common sense, like not printing SSNs on postcards or ID cards.
Collecting, verifying and protecting employee SSNs is another challenge. All businesses must obtain employee SSNs for tax purposes, and it’s important to be careful. Here are some things your business can do:
Keep employees informed. When you request SSNs, tell employees why, whether the law requires the number and any consequences of not providing it.
Reduce the use of SSNs at your workplace. Only display SSNs where you are legally required to do so.
Restrict access. Screen employees with access to confidential employee files, then provide them with privacy and locking doors and file cabinets.
Use secure procedures. If you need to send out employee SSNs, send them as securely as possible. For example, encrypt or password-protect any e-mails that contain sensitive information.
These resources can help you manage privacy and SSNs at your business:
• The Social Security Administration’s SSN verification at www.ssa.gov/employer; look for the Social Security Number Verification Service.
• The Better Business Bureau at www.BBBonline.org/business. Click on “Privacy Program” at the left-hand side of the page.
Daniel Kehrer can be reached at editor@business.com.
